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THAI clinches UN, IMF corporate account |
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Airline’s new premium revenue strategy paying off
By Mark Bode
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Vasing: putting more emphasis on corporate accounts.
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Thailand – Thai Airways International (THAI) has pulled off a major coup by securing an agreement with the UN and the International Monetary Fund (IMF) to fly their representatives to meetings in South-east Asia.
The national carrier said the deal, expected to generate about US$1.5 million annually for the airline, was the result of its direct flights between Bangkok and New York, launched in May. The UN and IMF are headquartered in New York.
THAI executive vice-president, commercial department, Mr Vasing Kittikul, said the deal was also the result of the airline’s new premium revenue strategy.
He said: “THAI has been left behind, to be frank, because we were mainly looking at passengers in the back seats. But now our product has improved, so we have to emphasise corporate accounts more.
“The board of directors – especially acting president Khun Somchainuk (Engtrakul) – wants us to push our
revenues and that is why our strategy is now more aggressive in promoting our quality revenue.”
THAI suffered a 4.78 billion baht (US$116 million) net loss in the second quarter.
The poor result was blamed on soaring fuel costs, higher staff expenses and foreign-exchange losses, and led to THAI president, Mr Kanok Abhiradee, being suspended for three months.
Mr Vasing said the new strategy was not only aimed at foreign companies but also major Thai-based corporations, as well as small and medium enterprises at home. “What we’re promising with those corporate deals is it’s not about the air fare but about the convenience, the seat, the food and other special requirements which constitute as added value,” he said.
He added the recent upgrading of the airline’s products and services had given it a competitive edge.
Mr Vasing said that while THAI’s overseas offices were playing a role in making sure the new strategy was successful, most of the burden rested with its local staff for now.
“The pilot project is in Thailand. We are approaching those corporate companies in Thailand which are represented overseas as well, like Honda, Toyota and Standard Chartered,” he said.
Mr Vasing said the airline’s product upgrade was due to be completed by the middle of next year.
He added THAI had just landed another deal with a major corporation but declined to reveal its name.
The carrier previously said it was pursuing similar deals to the UN-IMF agreement with a number of companies including Merrill Lynch, Chevron Texaco, Daimler-Chrysler, Unilever and Ericsson.
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