THAI to gain from Mideast airspace closures

Gulf disruptions boosting demand

- NAREERAT WIRIYAPONG

While rising fuel cost is inevitable, Thai Airways International (THAI) is on course to gain from airspace closures across several countries in the Middle East amid tensions in the Gulf region, where the flag carrier has no direct exposure, analysts say.

Though airspace closures remain in effect for several Gulf countries, resulting in widespread flight cancellations and disruptions to major aviation hubs in that region, THAI is expected to face limited direct operational disruption as the airline has no exposure to Middle Eastern routes, said Thanapol Jiratanakij, aviation analyst at CGS International Securities (Thailand).

“In fact, we think there could be some marginal positive implications on the demand side as capacity disruptions among Gulf carriers may tighten supply on certain long-haul routes, particularly Asia-Europe,’ said Mr Thanapol.