Thai Air Looking to Asian Partners...BKK No Longer Final Destination...

Thai Airways International is seeking an alliance with as many as 10 other Asian carriers in order to add destinations and counter a similar grouping of its low-cost rivals.
A series of bilateral accords could unite airlines from across the region to boost connectivity in India and China and smaller markets such as Myanmar and Vietnam, THAI president Charamporn Jotikasthira said in an interview. The company lacks the cash to expand its network via acquisitions, he said.

The plan signals a move away from simply siphoning more connecting traffic through Bangkok as envisaged in THAI’s two-year turnaround strategy, Mr Charamporn said, and comes after the formation last month of the Value Alliance coalition of eight budget carriers spanning Japan to Australia.

“Demand has been changing,” the THAI executive said in Dublin. “All requests on air traffic control into Thailand have been point-to-point to secondary cities. The model that we’ve been preaching in the past is going to change.”

While leading Asian operators such as Singapore Airlines and Cathay Pacific remain global players, other flag carriers have reached the same conclusion as THAI. Malaysia Airlines is more advanced with moves to turn KUL into a regional hub and says it will order new planes to ply under-served short-haul routes in the next few months.
The Value grouping, while set to be the world’s biggest alliance of low-cost airlines, may not trouble THAI unduly, since it brings together smaller players including Singapore’s Scoot and Cebu Pacific Air of the Philippines, that have a combined fleet about the same size as local low-cost No. 1 AirAsia.