THAI and Oman Air Enter Codeshare Agreement

20th Jan 2016

Thai Airways International (THAI) have signed its 27th codeshare agreement, this time with Oman Air. The codeshare, which will start officially, next Monday, will allow the Thailand and Oman carriers to partner on flights between Bangkok and Muscat.

According to the deal the two airlines signed, they will now offer up to 17 flights per week on the Bangkok-Muscat route. THAI currently connects the two destinations with wide body Airbus A330-300 aircraft, flying them three times per week (on Tuesdays, Thursdays and Sundays). At the same time, Oman Air offers two flights every day between Muscat and Bangkok.

The codeshare agreement with Oman Air could mean a resurgence for THAI, as the airline was struggling recently and was not as active in expanding its network as, for instance, Bangkok Airways.

Although significantly smaller than Thai Airways International, Bangkok Airways already boasts a total of 19 codeshare partnerships on various routes and with different allies. The carrier only operates regional and domestic flights.

Right now, Bangkok Airways is looking toward a prelaunch for its China-bound services. In that regard, the carrier is making moves to sign China Eastern Airlines as a codeshare partner.

Back to THAI, this company's vice president in charge of finance and accounting, Mr. Narongchai Wongthanavimok is of a firm opinion that the airline's business transformation plan will start bearing fruit soon and that their operating results will lead to a turnaround.

Mr. Narongchai's comments came after credit rating agency Tris Ratting downgraded Thai Airways International's rating of current unsecured debentures (long-term debt instrument used to borrow money at a fixed rate of interest). THAI was downgraded from A+ (with negative outlook) to A (with stable outlook). The biggest reason for this lies in THAI's rising leverage and net losses since 2011.

According to Mr. Narongchai, the Tris Rating downgrade will possibly affect THAI's funding, especially funding costs, but the carrier has already obtained enough to support its operations for this year.

THAI shares on the Stock Exchange of Thailand closed yesterday at 8.85 baht and were up 10 satang from the previous period.

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