Wednesday, April 27, 2011

GreenBkk.com Aviation | Etihad plans Bangkok expansion

Etihad plans Bangkok expansion

Published: 27/04/2011 at 12:00 AM

Etihad Airways expects to deploy Airbus A380-800s on its Bangkok-bound route soon after it starts taking delivery of the first fleet of 10 superjumbos in the last quarter of 2014.

The current plan is for the national carrier of United Arab Emirates (UAE) to put the world's largest commercial jetliner into Thai services in 2015 as it ramps up capacity through the kingdom, a key part of its growing network.

Chief executive James Hogan talked about the possibilities of using the double-decker aircraft for the third Bangkok-Abu Dhabi daily service, augmenting the existing twice-daily flight using Boeing's B777-300ER long-range jets.

"We believe the Thai market can sustain a third [daily] flight with an aircraft the size of the A380," he said.

It would make Etihad the third airline to operate the mega-jet, capable of carrying more than 500 passengers, through Bangkok's Suvarnabhumi Airport.

Rival Persian Gulf carrier Emirates has been operating A380s through Bangkok since mid-2009, while Thai Airways International (THAI) is set to start operating A380s in 2012.

THAI is due to receive the first three A380-800s in 2012 and another three in 2013, and all of them will be operated via the Suvarnabhumi hub.

Etihad expects the A380 will provide the capacity needed to meet rising demand on Bangkok-Abu Dhabi point-to-point traffic as well as connecting flights to Europe via the UAE capital.

Etihad sees 55% of its traffic originating from Bangkok travelling on to European cities, with the rest going to UAE and the Middle East.

Mr Hogan said Bangkok is the airline's top destination in Asia with the highest seat capacity - 824 seats per day.

The Australian-born chief executive is in Bangkok for a celebration to mark its seventh year of operation in Thailand and to launch Etihad's new Thai-language website.

While visiting Bangkok, Mr Hogan also held talks with codeshare partner Bangkok Airways president Captain Puttipong Prasartthong-Osoth and THAI president Piyasvati Amranand.

Etihad reported its most successful first quarter to date, with revenues up 21.2% to US$770 million, thanks to strong performance in both passenger and cargo traffic, coupled with a 5.9% reduction in cost per available seat kilometre.

The results mark progress towards the airline's target of breaking even in 2011 and becoming profitable in 2012.

"Fuel prices will be a major challenge for the industry this year," said Mr Hogan, adding Etihad had hedged more than 75% of its fuel requirements for 2011.

Credit: Bangkok Post (www.bangkokpost.com)

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