Bangkok Airways organizes a virtual press conference Unveiling its business plan and direction for 2022
Targeting 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's re-opening. Popular international routes such as the 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, 9 March 2022 (Today) Bangkok Airways Public Co., Ltd, led by Mr. Puttipong Prasarttong-Osoth, President, together 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 targets for the company in 2022 are to carry 2.6 million passengers, operate 34,000 flights, in order to gain passenger revenue of about 8.175 billion baht. The airline is in full gear for the country's re-opening and is planning to resume most of its popular domestic and international routes in 2022.
Mr. Puttipong Prasarttong-Osoth, President of Bangkok Airways PCL, commented. "It's obvious that the number of passengers of Bangkok Airways declined steeply during May-August 2021, due to the surge of Covid-19 Delta variant outbreak. In the same period, the airline started sealed-route flights to support the government's re-opening projects, Phuket Sandbox and Samui Plus, which resulted in an increased number of passengers. Samui has been the most popular route and sole income-generator for the company (about 63% of total passenger revenue, while other domestic routes generated about 35%). For CLMV routes, we resumed our Bangkok-Phnom Penh (Cambodia) services in December 2021, which for the year 2021 it generated about 2% of total passenger revenue.
"In 2022, we forecast that the aviation sector is expected to recover about 40% due to the increase of vaccination rates, as well as a reduction in travel restrictions and easing of Covid-19 preventive measures in Thailand. We plan to resume some of our popular domestic and international flights, including Bangkok-Krabi (starting from 27 March 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 to be resumed in the fourth quarter. However, these flight resumptions will depend on travel demand, travel restrictions in each country, and Covid-19 measures, which may not be relaxed at the time of planned resumption of operations."
"Currently, we have a total of 37 aircraft in our fleet; however, it will be reduced to 30 aircraft by the end of 2022 as per our current fleet management plans. Five Airbus A320 aircraft will be returned to leasers when the contracts expire, while another two ATR72-500 aircraft will be sold off."
"In addition, recently, we have received the Repair Station Recertification (Base and Line Maintenance - TCAR 8 Part 5) from the Civil Aviation Authority of Thailand (CAAT), which allows us to provide high-quality maintenance services for Airbus and ATR aircraft."
"Our goals in 2022, we expect to carry about 2.6 million passengers, with expected passenger revenue of 8,175 billion baht. We also hope to operate nearly 34,000 flights in 2022, with an expected passenger load factor of 65%. Therefore, we forecast that our average ticket fare will be around 3,100 baht," added Mr. Puttipong.
Mr. Anawat Leelawatwatana, Senior Vice President - Finance and Accounting, commented, "In 2021, the company had total revenue amounted to 5,668.5 billion baht, decreased by 44.5% when compared to the same period of 2020. Total operating cost was at 8,145.1 billion baht, which fell by 45.4% compared to 2020. The company reported a net loss at 8,599.8 billion baht, which included the termination of the Samui Property Fund Lease Agreement, amounting to 5,434.7 billion baht. The company's operating loss was at 2,532.5 billion baht in 2021, decreased by 22.2% compared to the year 2020.
"In order to achieve the set targets for 2022, we will be taking numerous measures to stabilize the company which include various efficiency cost-saving measures. We will reduce operation of leased aircraft upon contract expiry. We will also adjust route networks to match with travel demand, especially our Samui routes. We will attempt to have airport-related charges reduced. We will continue with adjustments of salary & benefits. We will maintain liquidity as well as reduce maintenance costs. And lastly, we will seek for government support such as requesting an extension of Excise Tax reductions."
"For airport-related businesses, in 2021, Bangkok Air Catering (BAC) had total revenue of 119.5 million baht, decreased by 61% as flight operations in and out of Suvarnabhumi airport and Phuket airport were significantly reduced. Bangkok Flight Services (BFS) had total revenue of 1,122.1 billion baht, decreased by 18%. However, efficient cost management enabled profits of 237 million baht to the company.
"Meanwhile, BFS Cargo had total revenue of 2,140.2 billion baht in 2021, increased by 18% compared to 2020. This growth was mainly from increased rates of freight services."
Mr. Chulin Kocharoen, Vice President - Sales and acting Vice President - Marketing, commented that "In 2022, we will mainly focus on international sales. However, our domestic sales will still be highlighted. We will be focusing on bettering our distribution channels with strategic pricing and developing our systems to facilitate our customers and partners experience. In addition, we will enhance our payment gateways, be more active in gaining ancillary revenues, while strengthening our unique selling points and impeccable services through effective marketing communication strategies."
"Domestic sales channels such as website, mobile application and Call Centre 1771 will remain our key sale channels for our domestic customers. For international markets, we will be working closely with Billing and Settlement Plan Agents (BSP Agents) in our key markets such as Europe, America, Australia, Japan, China, and South Africa and another 20 markets around the world. We will also be working with our codeshare partners in increasing sale volume."
"Another channel that we would like to tap into this year is the API, mainly through the NDC and metasearch network. It is the network that helps the airline connect with customers at anytime, anywhere worldwide. The API creates amazing linkage between our data and customers, enabling worry-free purchase experience for our customers when booking through OTAs. It greatly helps us to reduce sales costs. Currently, major OTAs have now been connected to the airline's booking system that also includes the metasearch engines such as Skyscanner and Google. Moreover, we are also determined to bring our products and services to be closer to our customers, and one of the platforms is applications or super apps. We are currently connecting with the Robinhood app, and we will try to be partnered with more applications that our customers tend to use regularly on their daily lives to create more sale volumes."
"For our marketing communications, this year we plan to launch the "Kid Teung… Hai Teung - You, who miss traveling" campaign to encourage customers who may not have had opportunities to travel during the current situations, to travel again. We have also prepared marketing activities to keep our brand on top of consumers' minds. Our main activity will be the half-marathon, "the Bangkok Airways Boutique Series 2022", which will be held in key tourist destinations such as Koh Samui, Lampang, Trad, Phang-nga, and Sukhothai to promote sport tourism and to circulate revenues in those local areas."
10 March 2022