Business plan

Bangkok Airways Public: Hosts Virtual Press Conference Unveiling Business Plan and Direction for 2022

Press release

Bangkok Airways Holds Virtual Press Conference Unveiling 2022 Business Plan and Direction

Objective 2.6 million passengers and 34,000 flights in 2022

The airline is confident that Koh Samui will remain its key destination after the country reopens. Popular international routes such as Maldives and Da Nang are expected to resume in the fourth quarter of 2022. In addition, various marketing strategies and campaigns are to be rolled out throughout 2022.

Bangkok, March 9, 2022 (Today) Bangkok Airways Public Co., Ltd, led by Mr. Puttipong Prasarttong-Osoth, President, with Mr. Anawat Leelawatwatana, Senior Vice President – Finance and Accounting and Mr. Chulin Kocharoen, Vice President – Sales and Acting Vice President – Marketing, organized virtual press conference, “Bangkok Airways Business Plan and Direction for 2022″. The company’s goals in 2022 are to carry 2.6 million passengers, operate 34,000 flights, to generate passenger revenue of around 8.175 billion baht. The airline is at full throttle for the reopening of the country and plans to resume most of its popular domestic and international routes in 2022.

Mr. Puttipong Prasarttong-Osoth, Chairman of Bangkok Airways PCL, commented. “It is evident that Bangkok Airways’ passenger numbers declined sharply in May-August 2021, due to the resurgence of the Covid-19 Delta variant outbreak. During the same period, the airline launched sealed-route flights to support the government’s reopening projects, Phuket Sandbox and Samui Plus, which led to an increase in passenger numbers. Samui was the most popular route and the only source of revenue for the company (approximately 63% of total passenger revenue, while other domestic routes generated around 35%) For CLMV routes, we resumed our Bangkok-Phnom Penh (Cambodia) services in December 2021, which for the year 2021 generated approximately 2% of total passenger revenue.

“In 2022, we expect the aviation sector to recover around 40% due to increased vaccination rates, as well as a reduction in travel restrictions and the relaxation of Covid-19 preventive measures. We plan to resume some of our popular domestic and international flights, including Bangkok-Krabi (from March 27, 2022), Samui-Chiang Mai, Samui-Hong Kong and Bangkok-Siem Reap, in the third quarter.Chiang Mai -Krabi (one way), Chiang Mai-Phuket (one way), Samui-Krabi, Bangkok-Danang, Bangkok-Luang Prabang, Bangkok-Yangon and Bangkok-Maldives are scheduled to resume in Q4. However, these flight resumptions will depend on travel demand, restrictions in each country, and Covid-19 measures, which may not be relaxed when operations are expected to resume.”

“Currently, we have a total of 37 aircraft in our fleet; however, it will be reduced to 30 aircraft by the end of 2022 in line with our current fleet management plans. Five Airbus A320s will be returned to lessors upon expiry contracts, while two more ATR72-500s will be sold.”

“In addition, we recently received the recertification of repair station (Base and Line Maintenance – TCAR 8 Part 5) from the Civil Aviation Authority of Thailand (CAAT), which allows us to provide maintenance services high quality for Airbus and ATR aircraft.

“Our targets in 2022, we expect to carry around 2.6 million passengers, with expected passenger revenue of 8.175 billion baht. We also expect to operate around 34,000 flights in 2022, with an expected passenger load factor of 65%. Therefore, we expect our average ticket price to be around 3,100 baht,” Mr Puttipong added.

Mr. Anawat Leelawatwatana, Senior Vice President – ​​Finance and Accounting, commented, “In 2021, the company achieved total revenue of 5,668.5 billion baht, down 44.5% from the same period of 2020. Total operating cost was 8,145, 1 billion baht, down 45.4% from 2020. The company reported a net loss of 8,599.8 billion baht, which included the termination of the Samui Property Fund lease, amounting to 5,434.7 billion baht.

“In order to achieve the targets set for 2022, we will take numerous measures to stabilize the business, including various efficiency cost reduction measures. We will reduce the operation of leased aircraft when the contract expires. We will adjust also route networks to match travel demand, particularly on our routes to Samui We will try to reduce airport charges We will continue to adjust salaries and benefits We will maintain liquidity and reduce maintenance costs. And finally, we will seek government support such as requesting an extension of the excise tax reductions.”

“For airport-related businesses, in 2021, Bangkok Air Catering (BAC) achieved total revenue of 119.5 million baht, down 61%, flight operations to and from Suvarnabhumi Airport and Phuket Airport have been drastically curtailed. Bangkok Flight Services (BFS) recorded total revenue of 1,122.1 billion baht, down 18%. However, a effective cost management has enabled the company to achieve profits of 237 million baht.

“Meanwhile, BFS Cargo achieved a total revenue of 2,140.2 billion baht in 2021, an increase of 18% compared to 2020. This growth is mainly due to the increase in the tariffs of the services of freight.”

Mr. Chulin Kocharoen, Vice President – Sales and Acting Vice President – Marketing, said that “In 2022, our main focus will be on international sales. However, our domestic sales will still be highlighted. We will focus on improving our distribution channels with strategic pricing and the development of our systems. to facilitate the experience of our customers and partners. In addition, we will improve our payment gateways, be more active in obtaining ancillary revenue, while reinforcing our unique selling points and our impeccable services through strategies of effective marketing communication.”

“Domestic sales channels such as the 1771 website, mobile app and call center will remain our primary sales channels for our domestic customers. For international markets, we will work closely with plan agents. billing and settlement (BSP agents) in our key markets such as Europe, America, Australia, Japan, China and South Africa, as well as 20 other markets around the world. with our codeshare partners to increase sales volume.”

“Another channel we would like to leverage this year is the API, primarily through the NDC network and metasearch. This is the network that helps the airline connect with customers anytime, anywhere in the world. API creates an incredible link between our data and customers, enabling a hassle-free shopping experience for our customers when booking through OTAs. This greatly helps us reduce selling costs. Currently, major OTAs are now connected to the airline reservation system which also includes metasearch engines such as Skyscanner and Google.In addition, we are also committed to bringing our products and services closer to our customers, and one of the platforms is apps or great apps. We are currently connecting to the Robinhood app, and we will try to be associated with more apps which our customers tend to use regularly in this app. ns their daily lives to create more sales volumes.”

“For our marketing communications, we plan to launch this year the “Kid Teung… Hai Teung – You who miss traveling“to encourage customers who may not have had the opportunity to travel during the current situations, to travel again. We have also prepared marketing activities to keep our brand in the minds of consumers. Our business The main event will be the 2022 Bangkok Airways Boutique Series Half Marathon, which will be held in key tourist destinations such as Koh Samui, Lampang, Trad, Phang-nga and Sukhothai to promote sports tourism and circulate revenue in these areas. local areas.”

March 10, 2022


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