Thai Lion still baring its claws

Thai Lion still baring its claws

The winds of change have blown through Thai Lion Air (TLA), whose rejigged strategy envisages dumping secondary routes and accelerating its core jet operation.

TLA's first Boeing 737-900ER jet is parked at Don Mueang airport in Bangkok. The Indonesian no-frills carrier means to add 10 of this type of aeroplane each year until the fleet reaches 50.

The no-frills affiliate of Indonesia's Lion Air Group has quietly dropped its entire secondary route service from Hat Yai and resolved to add 10 new Boeing 737-900ERs to its jet fleet this year.

TLA executives confirmed that due to poor traffic demand, the airline recently abandoned all four routes from Hat Yai to Medan, Kuala Lumpur, Hua Hin and Surat Thani, which began last April.

The airline has since returned its single ATR72-600 turboprop deployed on those routes to Indonesia, where the aeroplane is expected to join sister carrier Wings Air.

TLA will instead devote its expansion efforts this year largely to jet service from its hub at Bangkok's Don Mueang airport in a bid to capitalise on fast-growing budget travel demand.

This year will also see the airline's original aggressive expansion plans back on track in terms of both fleet and network after losing some momentum last year due to the political turmoil.

TLA's fleet of B737-900ERs is expected to grow by an average of 10 aeroplanes a year until reaching 50.

At the end of its first year of operation last December, TLA had a fleet of eight US-made narrow-body jets.

A ninth B737-900ER was delivered last month.

This year, TLA will boost its domestic and international network as well as flight frequencies on existing routes that show stronger demand.

TLA executives said frequent service from Bangkok to Chiang Rai and Ubon Ratchathani was set to be introduced in April or May.

The low-cost carrier is also awaiting approval from Chinese authorities to start regular service to Taiyuan, capital of the northern province of Shanxi, and probably to Shanghai as well.

Neighbouring Asean members are also on TLA's radar screen, with Singapore, served from Bangkok, high on the list.

TLA now operates seven domestic routes, all but one served from Bangkok.

From Bangkok, it flies to Chiang Mai, Hat Yai, Udon Thani, Surat Thani, Krabi and Phuket.

It also offers flights between Udon Thani and Hat Yai, although its intention to develop the southern location as a second hub seems to have diminished.

Its international network has only two routes, from Bangkok to Jakarta and Kuala Lumpur.

The airline now operates about 30 flights a day, and that number could double if all 10 new Boeing jets planned this year do join the operation, executives said.

TLA's load factor is reportedly within the range of 75-80%.

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