Kan Air Changes Strategy

Kan Air Splits with ThaiViet JetAir and Opens up 4 New Routes

U Tapao International Airport
U Tapao International Airport

Kan Air announced a new strategy this month in the wake of splitting with Thai VietJet Air (TVJA). It plans to focus on building a domestic aviation business. Already it has started 4 new routes from the airport at U-Tapao, in Rayong

Until recently Kan Air was in partnership with TVJA to develop international air routes across South East Asia. Mr Somphong, president of Kannithi Aviation Co, operator of Kan Air, told the Bangkok Post differences in management styles led Kan Air to offloading its 51% shares in the budget carrier which has been plagued with delays in starting up.

This split has led to a change in business strategy for Kan Air. They are now focussing on opening up new air routes in Thailand. As well as using Chiang Mai Airport they are now also using U-Tapao. It is a navy-owned airstrip in Rayong Province.

Now that Kan Air has leased 2 more planes (ATR 72-500 Turbo Props) they are able to operate flights from U-Tapao every other day to Chiang Mai, Khon Kaen, Ubon Ratchathani and Udon Thani. They are expecting the flat one way fare to be 990 Thai Baht.

The plan is to ‘think outside the box’. This means offering internal flights that don’t involve the two big airports in Bangkok – Don Mueng and Suvarnabhumi. It is a smart move as much of the domestic flight market goes through these two busy Bangkok airports. Those low-cost carriers that can join up the dots throughout the rest of the country will benefit as the Thai economy grows.

The 2 leased planes were originally thought to be ear-marked for Koh Phangan Airport. They might still be, but until the airport is completed, it makes business sense to maximise revenue from existing assets.

Source: http://www.bangkokpost.com/business/tourism/498501/sky-the-limit-for-kan-air