Thailand’s Bangkok Airways to provide third-party MRO

Bangkok Airways is to provide third-party heavy maintenance services for Airbus and Avions de Transport Régional ATR aircraft as part of its 2022 business plan to diversify its services, the company announced.

Speaking at a virtual press conference to announce its new business strategy, President Puttipong Prasarttong-Osoth said the regional airline recently had received its Repair Station Recertification for 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”.

He also disclosed the airline was further reducing its fleet from 37 to 30 aircraft by the end of 2022 in response to reduced travel demand due to the pandemic. It intends to return five A320-200s to lessors when their contracts expire, leaving it with only four of the type, according to the ch-aviation fleets advanced module.

It will also sell its last remaining two in-house ATR72-500s, he said. The airline already reduced its fleet of ATR72-500s by nine units between 2009 and 2019, according to ch-aviation fleets history data. It has kept its newer in-house ATR72-600s, of which it has 13 in the fleet (of which nine are in active service at present).

Bangkok Airways still has thirteen leased A319-100s on its books.

To save costs and stabilise the company, leased aircraft will be returned on contract expiry. In addition, route networks will be adjusted to match travel demand, especially on Koh Samui routes. Other initiatives will include reducing airport-related charges, adjustments of salary and benefit, maintaining liquidity, reducing maintenance costs, and seeking government support, such as requesting an extension of excise tax reductions.

The targets for the company in 2022 are to carry 2.6 million passengers operate 34,000 flights, and to generate passenger revenue of THB8.175 billion baht (USD244.6 million), it said in a statement.

It plans to resume most of its domestic and international flights in 2022 – pending demand, travel restrictions, and COVID-19 measures – including:

• March 27, 2022: Bangkok Suvarnabhumi – Krabi;
• 3Q22: Samui – Chiang Mai, Samui – Hong Kong Int’l, and Bangkok – Siem Reap (Cambodia);
• 4Q22: Chiang Mai – Krabi (one way), Chiang Mai – Phuket (one way), Samui – Krabi, Bangkok – Da Nang (Viet Nam), Bangkok – Luang Prabang (Laos), Bangkok – Yangon (Myanmar), and Bangkok – Maldives.

Finance and Accounting Senior Vice President Anawat Leelawatwatana said Bangkok Airways’ revenues in 2021 had decreased by 44.5% to THB5.668 billion baht (USD169 million) compared to the same period of 2020. Total operating costs fell by 45.4% to THB8.145 billion (USD123 million) compared to 2020. The company reported a net loss of THB8.599 billion (USD257 million. Its operating loss was THB2.532 billion (USD75.7 million), 22.2% less than in 2020.