New charter airline sees plenty of room for growth in Thailand
Carrier banks on visa-free entry for Thais to Japan
Asia Atlantic Airlines Co, a new charter carrier, believes there is still room for this business to grow in Thailand, thanks largely to the country’s ongoing tourism boom and its strategic location to connect to other parts of the world.
Asia Atlantic Airlines launched its first flight last month. It is a joint-venture firm among three parties, Japanese travel-agency giant HIS Group with 49 per cent, 39 per cent by HIS’s subsidiary in Thailand, and 12 per cent by the Thailand-based Baiyoke Group of Hotels. Registered capital is Bt540 million.
HIS spearheaded the launch of the charter airline to ensure seats for its customers ahead of the travel industry’s high season. Now that Thais can visit Japan visa-free for 15 days, air traffic to that country is expected to see a big leap.
Azadul Haque, president of the new JV, told The Nation that HIS opted not to base its airline in Japan because of high operating costs and regulatory barriers. Thailand is the perfect nation for its headquarters as it is a global tourism destination, is a key aviation hub, and is cost-effective.
There are two aircraft in its fleet, both Boeing 767-300ERs. He declined to disclose the size its fleet would reach over the next few years, but he said the company would grow step by step in a stable manner and look for business opportunities in regional markets where HIS has a foothold. Haque has worked with HIS in Japan since 1985.
HIS operates about 150 branches globally, especially in key markets in Asia. The parent company also works with local travel agencies in other countries to sell travel packages.
Asia Atlantic Airlines flies to Tokyo’s Narita and Osaka’s Kansai airports from Suvarnabhumi Airport. Demand for travel to Japan from Bangkok is high, but only three carriers – Thai Airways International, Japan Airlines and All Nippon Airways – operate direct flights.
Haque said the firm planned to launch new routes, but only when the demand and business opportunity were right. China, Russia, the Middle East, and Asian markets are considered to have potential. There is an HIS travel office in Moscow, while China is a big country with many cities that could drive travel demand. This year, the firm plans to add destinations in China and South Korea, while plans also include flights from Bangkok to Guam and Hawaii via stopovers in Tokyo, as it acquires more aircraft.
Other opportunities for the airline are expected to arise because some secondary cities in Thailand, especially Phuket, are also tourism destinations. Flights from China or Japan to Phuket could be offered. The opening of the Asean Economic Community in 2015 will also be a big boost to the flow of travellers in the region.
Asia Atlantic Airlines passengers can access both a departure lounge and dedicated immigration counters at Suvarnabhumi. On board, Thai and Japanese cabin crew are trained to take care of passengers. An affordable tour package is offered, with a minimum of about Bt29,000 for three nights.
“With our [HIS’s] years of experience of leisure tours in Asia, we offer convenience not only for tour operators but also guests, who will enjoy the highest standards of safety and service comparable with legacy carriers,’’ Haque said.
