Procurement News Notice |
|
| PNN | 6808 |
| Work Detail | No-frills Thai Lion Air (TLA) has joined the global airline industry club whose members are largely full-service carriers in a move to support its growth plans. TLA has joined a handful of low-cost carriers (LCCs) to become a member of the International Air Transport Association (IATA). The membership, which was officiated last Friday, allows TLA, part of Indonesia's gigantic Lion Air Group, to leverage extensive support and benefits rendered by IATA mechanisms. TLA managing director Darsito Hendro told the Bangkok Post that the membership, the first for a Thai-registered LCC, will be instrumental to the airline's international expansion. "Thai Lion is expanding internationally, already covering Singapore, Indonesia and Myanmar, with Vietnam next and India and Australia on our radar screen," he said. TLA's membership was made possible because the airline passed IATA's globally recognised operational safety audit a year ago, a requisite for any airlines that want to gain IATA membership. Thai Lion is one of five new members, joining LCC VietJet Air, Loong Air from China, Mauritania Airlines International and Lao Airlines. Most LCCs around the world including regional heavyweight AirAsia have shunned IATA membership as they do not see the IATA mechanism as beneficial. But Capt Darsito pointed out multiple membership benefits. It allows the company to expand its distribution through IATA-based travel agents via global distribution systems and bank settlement plans. The fees for both the systems and plans are lower for IATA member airlines. Membership also allows Thai Lion to garner support for best business practices. It gives TLA visibility among other IATA member airlines, allowing for interline and code share opportunities that could help bring more tourists to Thailand, he said. Lastly, Thai Lion can attract business from big international companies as most of them appoint IATA member airlines as their official travel carriers. A spokesman for IATA said membership is open to airlines operating scheduled and non-scheduled air services that maintain registry on the association's operational safety audit list. "We have always welcomed all airline business models to become members, including low-cost carriers," said the spokesman. By becoming a member, an airline has the opportunity to drive and shape the industry's trajectory and priorities, such as simplifying the business initiative, smart security and new distribution capabilities, he said. With 57 founding members in 1945, IATA now represents some 265 airlines in 117 countries, carrying 83% of the world's air traffic. |
| Country | Thailand , South Eastern Asia |
| Industry | Airports & Aviation |
| Entry Date | 15 Oct 2016 |
| Source | http://www.bangkokpost.com/business/tourism-and-transport/1079324/thai-lion-gains-access-to-iata |
