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Bangkok Airways Expanding Code-Share Partnerships
25th Jan 2017
According to aviation insiders, Bangkok Airways will introduce three new code-share partnerships with other international airlines over the following few months, as well as another three code-shares in the second half of 2017.
Three of these partnerships will be from China. Two will most likely include China Eastern Airlines and its subsidiary Shanghai Airlines, who are already in talks with the Thai- full-service regional carrier.
One more partner will come from Eastern Europe.
Asia’s Boutique Airline is most likely focusing on code-share partnerships with airlines from China in order to take advantage of the China’s huge air traffic volume in Thailand and beyond. Right now, Thailand is a very popular destination for travelers from China and Bangkok Airways covers many cities and resort destinations they are interested in.
By expanding its code-share pool, Bangkok does not necessarily look to do what other airlines have done and that is to reach new markets by expanding their own networks. Rather, the idea here is that the expanded pool will allow Bangkok Air to increase its traffic and regain some of its lost momentum.
This isn’t the first time Bangkok Airways has tried to bring new partners. Its previous attempt in 2016 wasn’t very successful and only Austrian Airlines joined as the 21st partner of the Thai-based carrier. In addition, the SET-listed regional airline also has an interline agreement with over 70 carriers. This agreement allows individual airlines to handle travelers on itineraries that need several flights on multiple airlines.
When it comes to passenger revenue from code-share and interline partners, Bangkok Airways reported a growth of 20% in the first nine months (January to September) of 2016 to 3.51 billion baht.
In addition, Bangkok Airways plans to increase the number of its passengers in 2017 by 13-15% and raise its revenue by 10-12% compared to last year. The airline also registered an aggregate net profit of 2.14 million for the January-September period of last year. This was 20.4% up from the previous year. At the same time, total revenue for the same period in 2016 was 20.5 billion baht, or 10% year-on-year.
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