Break for byline/break for normal. Bangkok-based Business Air says it is neither a mainstream nor budget carrier, but a flexible business model has brought it a devoted traveller base.
Published: 11/04/2011 at 12:00 AM
Not many people would think there are many opportunities left in the crowded skies of Thailand or the region but one startup airline has started to change the thinking with its success in various niches.
Business Air operates a fleet of one Boeing 767-200 and three 767-300ERs.
The newcomer Business Air offers a unique concept: a business airline that caters to the leisure market, a budget airline that offers extras including food, a ''local'' airlines with a niche global outlook.
The 100% Thai-owned company says it's not in the league of ''legacy'' airlines such as Thai Airways International, nor does it position itself among low-cost airlines such as AirAsia.
''Most airlines dictate schedules, but our schedules are dictated by our wholesalers and travellers,'' said chief operating officer Lomitusi Sean Te'o. ''We are a budget airlines that follows the chartered travel system. Our GSA (general sales agent) provides the travellers, and we provide the aircraft.''
Eighty percent of the carrier's flights are chartered, and only 20% on an ad hoc basis.
The approach offers more flexibility, allowing the airline to operate special flights to Durban and Johannesburg last year during the World Cup, for example, and charters to Taipei during the last Chinese New Year.
With numerous inquiries coming from Iran, the airline is also considering flights to that region.
Business Air started only 18 months ago, with flights to one country, Korea. ''Why Korea? Because we did a feasibility study, and discovered a big trend for Korea,'' says CEO Anucha Tiwari.
It teamed up with Global Aviation Alliance in Seoul, and Travel Design in Bangkok, to take large groups of Thai tourists in September 2009.
The flights offer the basics: a big screen in the middle of the cabin with no personalised screens, seats that are not as new, and no earplugs to listen to music or watch the television. But those who have flown Business Air say it delivers value for money. A trip to South Korea (including hotel, food and a tour) can cost as low as 20,000 baht.
The Korea service has been a hit, with 90% of the seats filled on average.
''Thai people love shopping in Korea _ everything from seaweed to beauty products,'' said Mr Anucha, pointing to the huge cardboard cartons of the Thai groups, who include everyone from toddlers to wheelchair travellers.
With fares 20% cheaper than on regular airlines, demand has been brisk and Business Air now offers daily services to Seoul, up from four flights a week earlier. It has since added flights from Busan to Phuket, and from Taego to Bangkok.
''Koreans love to visit Phuket, especially wedding couples, who fly in their wedding outfits, and do photo-shoots in Phuket,'' said Mr Anucha.
He estimated that 80-90% of the airline's travellers were groups ranging from 20 to 100 people, and only 5% independent travellers. The Thai groups usually taken four- or five-day package-trips.
Mr Anucha also observed that there is no high or low season for tour groups to Korea and Thailand. ''These are market-driven terms, and don't apply to us.''
When demand is especially heavy, the carrier can add a second daily flight, and it is fully booked for the Songkran season.
''We pride ourselves on our excellent timing'' says Mr Anucha, referring to the logo at the airport, ''On Time, First Time, Every Time''.
''We also are noted for our superior safety and service standards '' he added.
The company employs just 150 people, including foreign pilots. ''We outsource everything, but keep our core team, which is how we maintain our profitability even during lean periods.''
The core team includes experienced Thai personnel in the top posts including the CFO, directors of flight and ground operations and technical services.
Mr Anucha and executive vice-president Jay Khan between them have more than four decades of experience in the airline industry, and Mr Te'o, from Tonga, served as director of civil aviation in his country.
The airline recently added one more jet to the three it already has (one Boeing 767-200, and two 767-300 ERs) and opened a new route to Narita airport in Japan on March 15.
The initial focus will be Japanese tourists to Thailand, followed by Thai tourists to Japan. Mr Anucha acknowledged that the recent earthquake and tsunami had led to many cancellations but the airline expects to start filing its seats after the current crisis eases.
''Our GSA, HIS, is one of the top travel houses in Japan, flying about 2.7 million Japanese tourists every year, 50% of whom visit Asian countries.'' said Mr Te'o.
Flights between Japan and Korea are also in the pipeline. ''We are focusing on our backyard, on the Asian region, rather than on far-away destinations,'' said Mr Anucha.
Three more Asian destinations _ India, China and Taiwan _ are also in the plans because the airline foresees more demand, but it will expand gradually.
''We want to walk before we run, and we don't want to spread too fast,'' said Mr Anucha.
Credit: Bangkok Post (www.bangkokpost.com)
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