Jet Asia Airways to shift from charters to schedules

Jet Asia Airways is embarking on a major expansion and transformation as it gears up for fierce competition triggered by the launch of two long-haul low-cost carriers in Thailand. 

The vital measures the privately owned Thai charter airline is pursuing include doubling its fleet of Boeing 767 wide-body jets to 12 later this year, raising its 2014 revenue target by 150%, strengthening its workforce to  500 and upgrading its technological infrastructure.

These changes are crucial to a growth plan whose underlying drive is to transform the nature of operations from charter business to scheduled flights.

Managing director Chairat Sangchan said the entry of Thai AirAsia X (TAAX) and NokScoot later this year has also made it imperative for the airline to adopt such changes.

The significant part of Jet Asia’s current operations is charters catering to package tour groups, mostly Thai and Chinese, on flights from Thailand to China, South Korea and Japan — markets that are also on the radar screen of TAAX and NokScoot.

As more players join the fray, Mr Chairat told the Bangkok Post Jet Asia must speed up its transition from a largely seasonal basis to regular schedules if it is to draw travellers on a larger scale.

Jet Asia’s current revenue is split 60:40 between full charter and seasonal scheduling. The airline wants scheduled flights to constitute the lion’s share soon.

One key strategy is online ticket sales, a channel successfully adopted by budget airlines and quickly embraced by today’s travellers.

A “major” capital outlay will be made by Jet Asia this year to drive growth and transformation, he said. The carrier aims to operate 12 twin-engined B767s later this year, up from six now, with three aircraft variants flying from 7,300-14,400 km and capable of carrying 207-280 passengers each.

Jet Asia will buy the aircraft rather than leasing them as in the past. A considerable investment will be made to improve technological infrastructure and turn the airline into a “lean organisation”.

Up to 250 employees will be hired this year, bringing headcount to about 500.

The airline aims for full-year revenue of US$250 million (8.1 billion baht), up from $100 million in 2013.

Passenger amenities include complimentary hot meal and drinks, plus a 23-kg baggage allowance. In service for three years, Jet Asia has scheduled charter flights from Phuket and Bangkok’s Suvarnabhumi. From Phuket, it serves Tianjin, Beijing, Nanking and Chongqing in China. From Suvarnabhumi, it flies to Tianjin, Nanjing and Tokyo’s Narita airport

Source: Bangkok Post