A new airline founded by a Thai aircraft dealer and technology trading company plans to operate short domestic flights in the South, banking on high-spending local travellers.
Dhanee Dharapak, chief executive of M-Landarch, said as an authorised dealer of Cessna turboprop aircraft, as well as a maintenance and repair service provider for this type of plane, the company has the expertise to launch EZY Airlines.
M-Landarch was founded by Mr Dhanee in 2005 with registered capital of 92.7 million baht to sell aviation software and Cessna turboprops to buyers in Thailand.
According to the Department of Business Development database, M-Landarch earned 296 million baht in revenue with 13 million baht in net profit last year. He said the company gained a total profit of about 70 million baht during the past five years.
The firm plans to raise another 200 million baht to register EZY Airlines as a new company this year, with Mr Dhanee assuming the role of chief executive and managing director.
Describing itself as a flying shuttle bus, EZY Airlines will initially have only two pilots, without flight attendants or food service, he said. The company plans to use a Cessna 208B Grand Caravan Ex with 12 seats to operate one-hour flights.
EZY Airlines already obtained an air operator licence from the Civil Aviation Authority of Thailand, and acquired one new aircraft. The airline is in the process of document evaluation and preparing for an on-site and operational audit to obtain an air operator certificate by July.
The company plans to employ ground handling staff and five pilots, flying its first aircraft to obtain a class type certification licence and conducting route familiarisation training. In the next stage, EZY Airlines wants to recruit more co-pilots, said Mr Dhanee.
AIRLINE OF THE SOUTH
From October, the airline plans to operate a charter flight service from Hat Yai airport.
"We aim to be a small airline operator in the southern region as we see potential from high GDP per capita in this region," he said.
Mr Dhanee said the airline is following the business model of Hawaii's Mokulele Airlines, which also flies Cessna turboprops.
In the early stages, EZY Airlines will focus on patients and business travellers, he said.
The company is slated to take delivery of its second aircraft in April 2025, then start scheduled flights in July that year, flying from Hat Yai to Phuket, Nakhon Si Thammarat, Surat Thani and Betong in Yala.
Mr Dhanee said the airfare for flights between Hat Yai-Phuket and Hat Yai-Betong is estimated at 2,900 to 3,900 baht and 1,900-2,500 baht per one-way trip, respectively.
With small aircraft, the load factor should be at least 70%, or around eight out of 12 seats, to earn a profit each flight, he said.
This aircraft type is used worldwide, including in Thailand's Royal rainmaking project, said Mr Dhanee. He said each plane is expected to generate 120-150 million baht in revenue per year, with at least a 20% profit.
Thana Dharapak, director of aviation, said the company aims to have five aircraft by 2026 and nine in 2028, expanding to Hua Hin in the second phase.
EZY Airlines will only acquire new aircraft, using each plane for five years before reselling it and replacing it with a new plane, he said.
The first five planes in the fleet will be fully invested by the airline, while the next four aircraft will be purchased through investment with other partners, said Mr Thana. The company is looking for strategic partnerships with regional companies, such as hotels and tour companies, he said.