Turkish Airlines builds Bangkok hub

Turkish Airlines is confident it can secure a code-share agreement with Thai Airways International on routes to Australia by the end of this year.

Although the Australian government signed off on an air services agreement that allows TK to operate up to five weekly services between the two countries, the airline prefers a code-share service run by TG.

Both airlines are members of the Star Alliance, which encourages members to build networks around hubs and code-share agreements with seamless connections.

The European airline has positioning Bangkok as its primary hub in Asia and plans to extend routes to Ho Chi Minh City, Manila and Kuala Lumpur in the long-term.

In the meantime, the airline will up frequency on the Bangkok-Istanbul route from daily to 10 flights a week and double daily if they can feed more traffic through Bangkok to other cities in Asia, using the THAI network.

Turkish Airlines general manager, Thailand, Vietnam and Cambodia, Adnan Aykac, said that the carrier had been pursuing a code-share agreement with THAI for Australian destinations ? Sydney, Melbourne, Perth, Brisbane as well as Auckland in New Zealand.

?This is a win-win situation for both airlines. We can feed THAI 40,000 passengers a year if a code-share agreement is established. Currently through the SPA (special prorate agreement), we feed 3,000 passengers to the TG network.

?Australia has over 1 million residents who settled there from Balkan countries and Turkish has the best network to these destinations that could help THAI break into that market through a code-share service.?

The code-share talks started in 2009. Mr Aykac reasons that delays in considering the project were due to THAI not having a president until last October. Talks have since gained more momentum with the new THAI president under pressure to show he can turn the airline around.

THAI is the first choice as it has a strong network to Australia, but there are other options including starting its own service, or developing a hub in Singapore with Singapore Airlines as its code-share partner. It already has a service to Singapore.

This November, TK plans four weekly services to Ho Chi Minh City, via Bangkok. It will also initiate talks to establish a SPA on Vietnam Airlines? Bangkok-Hanoi route, over the next two months.

Manila and Kuala Lumpur services are also in the pipeline for 2011. Turkish Airlines has passengers from both cities  using a SPA with THAI, Malaysia Airlines and Philippines Airlines.

Focusing on the outbound Thai market, TK said it was a tough 2009 with a marginal 2% improvement over 2008. This year, it projects 10% growth due to an improved situation and expansion of network and capacity.

Billing itself as a network airline, 75% of passengers from Bangkok are transit passengers to other European cities. However, it aims to boost tour groups from Thailand to explore Turkey.

The Turkish Tourism Bureau, based in Kuala Lumpur, says it can increase visits from 9,000 in 2009 to 15,000.

As the national carrier, TK will play a big role, backing promotions with fares and domestic connections. The bureau will join the 7th Thai International Travel Fair, from 25 to 28 February, for the first time.

?We are disappointed that Thailand only generated 9,000 visits, while Malaysia with no direct access supplied 30,000 visits last year,? said Mr Aykac.

To increase brand awareness locally, it will spend Bt30 million on a Globally Yours advertising campaign. It recently paid for an outdoor wrap advertisement on Bangkok?s tallest building, the Baiyoke Tower.

Other marketing activities include cooperation with the Mall Group offering discounted fares for M card holders and discounted fares for American Express cardholders, followed by cooperation with Citibank.

In October, it will take deliver of its first Boeing 777-300ERs. Twelve are on order to be deployed on long haul routes including Bangkok.

Sourced = The TTR Weekly