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THAIUnderstanding the Thailan

This briefing has been prepared by the Tourism Austraassisted by the research of the Centre for Asia Pacific Av 

of Infrastructure, Transport and Regional Economic 

At a G

ArrivalsGrowth

DirectSeats

LoadFactors

2007 +12%2008(F) +3%2009(F) +5%

2007 0.71mil% ch +45%Rank 8

2006 74%2007 82%Nat. Av. 78%

MajCarri

Thai Ai69

(F) Forecast. Source: Tourism Forecasting Committee, 2007 Issue 2

In 2007 Australia regained some of its Thai outbouwas partially due to the very strong growth in aopening up new destinations and improving Au

increased during this period reflecting strong dema

challenge is to ensure there are sufficient seats aAustralian dollar continues to a reciate a ainst ttravel to Thailand. In addition, strong growth in ca

expected to intensify so demand for

Coming into Australia

Bangkok-Sydney is the busiest route with around 60% of capacity be

route.

Feedback or Suggestions?Tel: +61 2 9361 1374lfletcher@tourism.australia.com

Prepared: June 2008

AND AVIATION PROFILEd to Australia Aviation Environment

lia Aviation & Economics Team, but was significantly iation and data from Air Transport Intelligence, Bureaus and Department of Immigration and Citizenship.

lance

orers

rways%

Seasonal

Peaks

January/December

Aus. PortsServiced

4/8

OriginTraffic

20%Thailand is a majorhub for European

traffic

d market share that it had lost in recent years. Thisviation capacity on the Thailand-Australia route,stralia’s price competitiveness. Load factors alsod for these services. However, a key aviation related

vailable for local Thai residents, particularly if thee Thai baht enticin more and more Australians to

acity from Thailand to neighbouring destinations isustralia may soften in the short term.

ween these cities. Four different carriers currently operate on this

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Airlines on the Route

on this route. In 2007 the carriergained back some market share at

the expense of intermediate carriers.Thai Airways

Share of Passengers - 200

Other 8%

Qant

Jetstar

Thai

750

,

expected to become a key carrier on

leisure routes between Thailand and

Australia.

69%

Direct Capacity: Thailand to Australia

Singap

 

Oct 07: Thai Airways added 2 Bangkok-Sydn

500

SeatsAvailableper year

(‘000)

Nov 06: Jetstar launched 3 Phuket-Sand 3 Bangkok-Melbourne (one ont

Jul 07: Thai Airways dropped 5 wkly Brisbane s

Dec 06: ThAirways aservices

0

250

Dec-91 Dec-93 Dec-95 Dec-97 Dec-99 Dec-01 Dec-03

Capac ity Load Factors

Bilateral Capacity Restrictions: There are currentl bindin ca acit

Dec05-JanAirlines op

Nov 92- Oct 97: Air NZoperated services

p y

services agreement, there is approval for 35 frequencies per week (1

capacity allocation and Thai carriers using 90%. There is a need for th

opportunity to expand Australian services and regional package (i.e.

Sydney, Melbourne, Brisbane and Perth) should be made available. B

Looking Ahead

•Capacity on the Thailand-Australia aviation route is expected to con

In April 2008 Thai Airways added two weekly Bangkok-Melbourne se

modern B777).

•It is also expected that Thai tourists will increasingly travel beyondBlue interline agreement signed in February 2008. This agreement ai

from Bangkok to Sydney, Melbourne, Brisbane or Perth on Thai Airwa

Blue services (Adelaide, Canberra, Broome, Mackay, Rockhampton, M

Harbour and the Gold Coast). This is an important development give

regional Australia.

•Thai Airways plans to increase its focus on long haul routes to avoid

given Thai Airways has a range of long haul aircraft in its fleet and o

financial outlook has improved. However, Thai Airways focus on lon

(US$135 per barrel) so this may slow the carriers expansion plans.

•The strong Australian dollar is expected to remain an obstacle for T

destinations in the Thai tourists’ agenda along with Japan and China

Feedback or Suggestions?Tel: +61 2 9361 1374lfletcher@tourism.australia.com

Prepared: June 2008

•T e T a government as ec e not to convert t e Don Muang Int

Thailand’s attraction of further low cost services (given Kuala Lumpu

Airline 2003 2004 2005 2006 2007

Thai Airways 70% 64% 62% 62% 69%

Singapore Airlines 11% 17% 14% 16% 9%

British Airways 4% 3% 4% 4% 5%

Qantas 9% 7% 7% 6% 5%as 5%

4%

80

Jetstar 0% 0% 0% 1% 4%

Other 7% 9% 13% 10% 8%

Total 100% 100% 100% 100% 100%

In 2007 direct ca acit on the Thailand-

 5%

re Airlines9%

 y services

70

 

Australia route increased 45% year-on-year.

This was primarily due to Jetstar’s new services

as well as Thai Airways additional Sydney

services. Load factors also increased strongly

during this period reinforcing strong demand

for these services .

There is very little seasonality in direct services

AverageAnnual

Load Factor(%)

 ydneySyd)

rvices

aided

ec-05 Dec-07

50

60 from Thailand to Australia compared to other

source markets. This is partially because the

aviation route is predominantly Australians

traveling outbound to and beyond Thailand at

all times of the year. April is the peak period for

Thai arrivals to Australia.

constraints between Thailand and Australia. Under the current air

6: Australianrated services

,000 seats) with Australian carriers using 32% of their available

e bilateral agreement to be updated to allow Thai carriers the

he ability to operate unlimited international services outside

ilateral talks are expected in the coming months.

tinue to grow in 2008 and 2009, albeit at a slower rate than in 2007.

rvices and upgraded its Perth services (to the larger and more

ustralia’s key gateways as a result of the recent Thai Airways/Virginms to provide ‘seamless’ connectivity allowing Thai tourists to travel

 ys and then onto a choice of 13 Australian destinations that Virgin

aroochydore, Cairns, Townsville, Hobart, Launceston, Ballina, Coffs

n that the bilateral agreement effectively restricts services to

LCC competition. Capacity to Australian ports may continue to grow

order (including six A380 and eight A330) and the company’s

haul routes was announced before fuel prices hit record highs

ai inbound visitors despite Australia being one of the top

.

ernat ona a rport nto a ow cost term na an t s may s ow

r has recently fast-tracked construction of a low cost terminal).