Phuket Air

Phuket Air, also known as Phuket Airlines Co. Ltd., was a Thai passenger airline headquartered in Bangkok. It was established in 1999 and began flying on 19 December 2001 with two Boeing 737-200 aircraft. The carrier initially presented itself as an international scheduled airline, with a domestic network linking Bangkok and Phuket with destinations including Chiang Mai, Krabi, Chiang Rai, Hat Yai, Ranong, and Mae Sot. Its Ranong service also supported tourism connected with the Andaman Club Hotel and Casino in Myanmar, a business associated with owner Vikrom Aisiri. During its early expansion, Phuket Air acquired a diverse fleet that included Boeing 747-200, Boeing 747-300, Boeing 757-200, and NAMC YS-11 aircraft. It added international scheduled and charter flying to its activities, serving or operating services connected with London, Paris, Amsterdam, Dubai, Dhaka, Chittagong, Yangon, and Incheon. Tour operators used the airline for charter services from Asian cities such as Kuala Lumpur, Hong Kong, Shanghai, Singapore, Taipei, Jakarta, and Manila to Bangkok and Phuket. The airline also undertook pilgrimage flying, including Hajj and Umrah charters to Jeddah for passengers originating in Indonesia, the Philippines, and Bangladesh. Other ad hoc charter work included flights from Japan to Kuwait for the Japanese Iraq Reconstruction and Support Group. The company’s scheduled-airline model came under pressure after the 2004 Indian Ocean earthquake and the resulting weakness in regional tourism. Phuket Air also faced difficulty operating and maintaining an aging and varied fleet. Reports of poor service and safety concerns contributed to a major regulatory setback in 2005, when the European Union prohibited the carrier from operating in the EU. This forced the suspension of services to European destinations such as London and Amsterdam and accelerated a reduction in scheduled operations. By the end of 2005, the airline had cut its network, dismissed hundreds of employees, and begun shifting its business toward leasing aircraft, crews, maintenance, and insurance to other airlines. The company’s most important later relationship was with Saudi Arabian Airlines, for which Phuket Air supplied Boeing 747 aircraft and crews on short-term wet-lease and ACMI contracts, particularly for Hajj operations. In the 2005–2006 Hajj season, Phuket Air provided Boeing 747-200 and 747-300 aircraft. It also performed charter work connected with the Saudi Ministry of the Interior, including flights carrying deportees. To address regulatory concerns, Phuket Air engaged Air France Industries to assist with aircraft maintenance and safety improvements. After audits and inspections, the European Commission removed the airline from the EU blacklist on 6 March 2007. Phuket Air subsequently resumed selected activity, including the provision of three Boeing 747-200/-300 aircraft to Saudi Arabian Airlines for Hajj charters in October 2007. The company remained focused on ACMI and wet-lease work rather than rebuilding a broad scheduled network. In 2010, its Saudi Arabian Airlines contract transitioned to Boeing 747-400 aircraft. Phuket Air had no active fleet recorded by April 2013, and the airline ceased trading in 2012. Much of its remaining aircraft fleet was later scrapped by 2018. Its business history illustrates the shift of a small regional scheduled carrier toward specialist charter and capacity-supply services, as well as the operational and regulatory challenges of maintaining older wide-body aircraft.

Phuket Air was established in Thailand in 1999 and began commercial operations on 19 December 2001. Based in Bangkok, with its main base at Suvarnabhumi Airport and a hub at Phuket International Airport, it initially operated as a scheduled passenger carrier. Its first aircraft were two Boeing 737-200s, used on domestic routes connecting Bangkok with Phuket, Chiang Mai, Krabi, Chiang Rai, Hat Yai, Ranong, and Mae Sot. The Ranong operation had a particular connection with tourism at the Andaman Club Hotel and Casino in Myanmar, associated with owner Vikrom Aisiri. The carrier expanded rapidly and developed a mixed fleet that included Boeing 747-200 and 747-300 wide-body aircraft, Boeing 757-200 aircraft, and NAMC YS-11 turboprops. It added international scheduled services to destinations in Europe, the Middle East, South Asia, Southeast Asia, and East Asia, including London, Paris, Amsterdam, Dubai, Dhaka, Chittagong, Yangon, and Incheon. Phuket Air also worked with tour operators on charter flights from Kuala Lumpur, Hong Kong, Shanghai, Singapore, Taipei, Jakarta, and Manila to Bangkok and Phuket. Pilgrimage flying became another important activity: the airline operated Hajj and Umrah charters to Jeddah from Indonesia, the Philippines, and Bangladesh. It also undertook specialized charter work, including flights from Japan to Kuwait for the Japanese Iraq Reconstruction and Support Group. The company’s expansion was undermined by a downturn in tourism after the 2004 Indian Ocean earthquake and by the challenges of maintaining an aging and heterogeneous fleet. Poor service and safety concerns damaged the airline’s reputation. In May 2005, the European Union banned Phuket Air from flying to EU destinations, suspending its European services. The ban was a serious commercial and regulatory setback. By the end of that year, the carrier had reduced its operations, dismissed hundreds of workers, and begun repositioning itself as a provider of aircraft and operational capacity to other airlines. Domestic scheduled services ended on 12 September 2005. The company retained limited scheduled and charter activity during the transition. In early 2006, it was reported to maintain a Bangkok–Ranong domestic route and international package-related services involving Yangon and Chittagong, but scheduled services in and out of Thailand were subsequently discontinued. Phuket Air’s strategic emphasis became ACMI and wet leasing, in which it supplied aircraft, crews, maintenance, and insurance to another airline. Saudi Arabian Airlines became its principal long-term customer. During the 2005–2006 Hajj season, Phuket Air supplied Boeing 747-200 and 747-300 aircraft to Saudi Arabian Airlines on short-term wet leases. It also operated charter flights for the Saudi Ministry of the Interior in late 2006 and early 2007, including deportee transportation. To improve its safety and maintenance systems, the airline commissioned Air France Industries, the maintenance-services arm of Air France, to provide assistance. Following stringent audits and inspections, the European Commission removed Phuket Air from its blacklist on 6 March 2007. This enabled the airline to overcome a major regulatory barrier, although it did not restore its former scheduled network. In October 2007, Phuket Air resumed selected operations by providing three Boeing 747-200/-300 aircraft to Saudi Arabian Airlines for Hajj charter flying. A later contract moved the operation to Boeing 747-400 aircraft in 2010. The airline therefore became primarily a specialist supplier of seasonal wide-body capacity rather than a conventional scheduled airline. By April 2013 it had no active fleet recorded, and Phuket Air ceased trading in 2012. Much of its fleet was eventually scrapped by 2018. Its trajectory moved from ambitious scheduled and charter expansion to regulatory crisis, restructuring around wet leasing, and eventual closure.

• 2018

  Former fleet largely scrapped

  [1]Phuket Airen.wikipedia.org

  Much of the airline’s former aircraft fleet is reported to have been scrapped by this year.

• 2012

  Trading ends

  [1]Phuket Airen.wikipedia.org

  Phuket Air ceases trading.

• 2010

  Boeing 747-400 contract

  [1]Phuket Airen.wikipedia.org

  The carrier transitions to Boeing 747-400 aircraft under a new Saudi Arabian Airlines contract.

• 2007

  EU blacklist removal

  [1]Phuket Airen.wikipedia.org

  The European Commission removes Phuket Air from its blacklist on 6 March after safety audits and inspections.

• 2007

  Saudi Arabian Airlines Hajj wet-lease operation resumes

  [1]Phuket Airen.wikipedia.org

  In October, Phuket Air provides three Boeing 747-200/-300 aircraft to Saudi Arabian Airlines for Hajj charters.

• 2006

  ACMI and Hajj charter focus expands

  [1]Phuket Airen.wikipedia.org

  The company increasingly concentrates on ACMI and wet-lease work, including Boeing 747 operations for Saudi Arabian Airlines during Hajj services.

• 2005

  EU operating ban and scheduled-network retrenchment

  [1]Phuket Airen.wikipedia.org

  The European Union bans the airline from operating in the EU. Phuket Air suspends European services, cuts its network, lays off hundreds of employees, and begins focusing on leasing.

• 2005

  Domestic services end

  [1]Phuket Airen.wikipedia.org

  Scheduled domestic services cease on 12 September.

• 2001

  Commercial operations begin

  [1]Phuket Airen.wikipedia.org

  The airline begins operations on 19 December with two Boeing 737-200 aircraft.

• 1999

  Phuket Air is established

  [1]Phuket Airen.wikipedia.org

  Phuket Airlines Co. Ltd. is established in Thailand.

Initially positioned as a Thai scheduled passenger and charter airline, Phuket Air later specialized in ACMI, wet-lease, dry-lease, pilgrimage charter, and other capacity-supply services for larger carriers and institutional customers.

• Passenger airline · 2001

  Scheduled passenger services

  Phuket Air initially operated scheduled domestic and international passenger flights. Its Thai network included Bangkok, Phuket, Chiang Mai, Krabi, Chiang Rai, Hat Yai, Ranong, and Mae Sot, while international scheduled destinations included cities such as London, Paris, Amsterdam, Dubai, Dhaka, Chittagong, Yangon, and Incheon. These services were progressively reduced and ultimately discontinued as the airline moved away from the scheduled-airline model.

• Charter aviation

  International charter services

  The airline operated charter flights for tour operators and other customers, linking Bangkok and Phuket with Asian origins including Kuala Lumpur, Hong Kong, Shanghai, Singapore, Taipei, Jakarta, and Manila. Its charter activity also included specialized and ad hoc missions outside its regular passenger network.

• Pilgrimage charter

  Hajj and Umrah charters

  Phuket Air provided pilgrimage charter services to Jeddah for Hajj and Umrah travelers from Indonesia, the Philippines, and Bangladesh. These operations used Boeing 747 aircraft and later became closely connected with the airline’s wet-lease relationship with Saudi Arabian Airlines.

• Aircraft leasing and airline capacity services · 2005

  ACMI and wet-lease services

  ACMI and wet leasing became Phuket Air’s central business after its scheduled network was curtailed. Under these arrangements, the airline supplied aircraft together with crews, maintenance, and insurance. Saudi Arabian Airlines was the principal long-term customer, using Phuket Air wide-body aircraft for seasonal Hajj and other charter requirements.

• Aircraft leasing

  Dry-lease services

  The airline also offered dry leasing, supplying aircraft without the complete operational package associated with ACMI or wet leasing. This activity formed part of its broader transition from independent scheduled flying to aircraft and capacity leasing.

• 2005

  European Union air-safety blacklist

  The European Union prohibited Phuket Air from operating within the EU amid safety concerns and reported service problems. The restriction suspended the airline’s European services, including flights to London and Amsterdam, and contributed to its decision to reduce scheduled operations.

  Source

Read more

• 2010

  Transition to Boeing 747-400 aircraftGeneration change

  Background

  Phuket Air continued providing wide-body capacity under its relationship with Saudi Arabian Airlines.

  Action taken

  The airline transitioned to Boeing 747-400 aircraft under a new contract.

  Aftermath

  The change represented a continuation of its wet-lease and pilgrimage-charter specialization rather than a return to large-scale scheduled services.

  Source

• 2007

  Safety remediation and regulatory recoveryStrategy

  Background

  Phuket Air needed to address the safety deficiencies associated with its EU blacklist status.

  Action taken

  The airline engaged Air France Industries to support maintenance and safety improvements and underwent stringent audits and inspections.

  Aftermath

  The European Commission removed Phuket Air from its blacklist on 6 March 2007, allowing the carrier to resume selected international-related operations.

  Source

• 2007

  Renewal of Saudi Arabian Airlines Hajj wet-lease activityOther

  Background

  After its regulatory recovery, Phuket Air sought to continue its most important remaining commercial relationship.

  Action taken

  In October, it supplied three Boeing 747-200/-300 aircraft to Saudi Arabian Airlines under a short-term ACMI or wet-lease arrangement for Hajj charters.

  Aftermath

  The Saudi relationship remained central to Phuket Air’s reduced business model, later moving to Boeing 747-400 aircraft in 2010.

  Source

• 2005

  Shift from scheduled passenger operations to aircraft leasingStrategy

  Background

  A tourism downturn following the 2004 Indian Ocean earthquake, an aging fleet, service criticism, and the EU operating ban placed pressure on the scheduled-airline business.

  Action taken

  Phuket Air reduced its scheduled network, dismissed hundreds of employees, ended domestic services, and redirected its business toward ACMI, wet leasing, dry leasing, and charter work.

  Aftermath

  The company continued primarily as a specialist aircraft-capacity provider, particularly for Saudi Arabian Airlines, rather than rebuilding a broad Thai scheduled network.

  Source

1. 1Phuket Airen.wikipedia.org