Sunday, June 1, 2025
In a strategic shift that underscores both the challenges and opportunities in long-haul aviation, Thai Airways International (THAI) has announced it will not resume direct flights to the United States, despite a recent upgrade in Thailand’s aviation safety rating by the U.S. Federal Aviation Administration (FAA). Instead, the national carrier is intensifying its collaboration with multiple U.S.-based airlines to attract American travelers to Thailand, boosting tourism and preserving commercial viability.
The announcement comes shortly after Thailand regained FAA Category 1 (CAT1) status—a designation that signifies compliance with international aviation safety standards. The upgrade reinstates Thai airlines’ eligibility to operate direct flights to U.S. destinations after nearly a decade of being under Category 2 (CAT2) restrictions. However, despite this regulatory green light, THAI CEO Chai Eamsiri has confirmed that the airline will not revive its direct routes to key U.S. cities like Los Angeles and New York, due to significant economic and operational challenges.
FAA Category 1 Upgrade: A Green Light with Limitations
In early 2025, the FAA officially reinstated Thailand’s aviation status to Category 1 under its International Aviation Safety Assessment (IASA) program. This decision was based on comprehensive assessments conducted in coordination with Thailand’s Civil Aviation Authority (CAAT) and the International Civil Aviation Organization (ICAO).
According to the FAA and ICAO, Category 1 indicates a country’s compliance with the standards and practices recommended for aviation safety oversight. It enables airlines from that country to establish new services to the U.S. and codeshare with American carriers, reopening long-shut commercial doors for Thai operators.
CEO Chai Eamsiri welcomed the FAA’s decision, stating:
“This upgrade is a milestone achievement for Thailand’s aviation sector. It reflects the government’s commitment to raising safety standards and restoring international confidence.”
However, Eamsiri was also candid about the limitations of this newfound regulatory freedom. Despite eligibility, THAI’s feasibility studies found that reintroducing nonstop flights to the U.S. would not be commercially viable under current economic conditions.
Economic Infeasibility of Long-Haul U.S. Flights
The THAI Airways executive elaborated on the findings of the airline’s internal review. Drawing from historical performance data, Chai noted that THAI previously operated direct U.S. flights for over a decade, yet consistently recorded financial losses.
“Even after modifying our strategy to include stopovers, we were unable to achieve sustainable profitability,” Eamsiri explained. “The economics simply do not support such long-haul operations today.”
Key challenges include:
- Fuel Costs: For 17-hour direct flights to U.S. cities, fuel consumption is disproportionately high. Global jet fuel prices remain volatile and continue to strain airline budgets, as reported by the International Air Transport Association (IATA).
- Weight Limitations: Return flights from the U.S. would require significant seat reductions—over 100 fewer passengers—to accommodate the fuel payload. Cargo capacity would also be severely constrained, further limiting revenue.
- Operational Costs: High airport fees, crew layover costs, and aircraft maintenance add to the cumulative financial burden of ultra-long-haul routes.
These constraints echo findings from the World Bank’s Air Transport Strategy for developing countries, which warns that national carriers often struggle to sustain long-haul routes without heavy subsidies or consistent premium demand.
Strategic Pivot: Leveraging Airline Partnerships
Instead of resuming direct flights, THAI is pivoting toward a partnership-driven model, strengthening cooperation with six U.S. airlines to maintain its footprint in the American travel market. Through codeshare agreements, interline arrangements, and aligned schedules, THAI will ensure that American passengers can still access its network via regional U.S. hubs and onward connections in Europe and Asia.
While the names of partner carriers were not disclosed in the official announcement, such partnerships typically involve major U.S. airlines operating out of key international airports like San Francisco (SFO), Chicago (ORD), and Atlanta (ATL).
This partnership strategy aligns with Thailand’s National Tourism Development Plan (2023–2027), which emphasizes multi-modal connectivity and international collaborations to increase visitor flows.
“Our presence in the American market remains strong,” said Eamsiri. “These partnerships allow us to grow our revenue without taking on the financial burden of direct long-haul operations.”
Currently, around 30% of THAI’s passenger revenue originates from European travelers, with Asia following closely. While the U.S. market comprises a smaller portion, its potential remains significant, especially given the rising interest among American tourists in Southeast Asia post-pandemic.
Implications for Thailand’s Tourism Sector
The move has broad implications for Thailand’s $100 billion tourism industry, which contributes over 20% to the country’s GDP and supports more than 4 million jobs, according to the Tourism Authority of Thailand (TAT).
American tourists accounted for over 1 million arrivals in 2023, and the number is projected to increase by 15% in 2025 due to renewed diplomatic and travel initiatives. Thailand remains a top destination for U.S. travelers seeking authentic cultural experiences, beach resorts, wellness retreats, and adventure tourism.
To facilitate this growth, the Thai government is working in tandem with airlines, hotels, and tour operators to provide visa flexibility, improve airport infrastructure, and promote eco-tourism initiatives under its Bio-Circular-Green (BCG) Economy Model.
Moreover, Thailand’s participation in APEC’s Travel Facilitation Agreement and regional aviation initiatives under ASEAN makes it an increasingly accessible and attractive hub in the Indo-Pacific corridor.
Government Support and Long-Term Outlook
Despite the shelving of direct flights, THAI’s strategy is fully aligned with national objectives set by the Ministry of Transport and Ministry of Tourism and Sports, both of which advocate for economically sustainable aviation models and collaborative international frameworks.
According to official statements from the Civil Aviation Authority of Thailand (CAAT), the FAA’s Category 1 rating will also benefit other Thai carriers seeking to enter the U.S. market, potentially through cargo services, charter flights, or specialized routes targeting business and medical tourism segments.
Looking ahead, Eamsiri left the door open to future reassessment:
“Should market dynamics shift—fuel prices drop, aircraft technology evolve, or demand surge—we may revisit the idea of direct flights. But today, partnership is the most responsible and profitable approach.”
Conclusion: A Model of Strategic Adaptation
THAI Airways’ decision to forego direct U.S. flights despite regulatory clearance is not a retreat but a calculated pivot. By focusing on partnerships, maintaining market presence, and aligning with government tourism goals, the airline exemplifies strategic adaptation in a post-COVID world.
As fuel costs, sustainability, and profitability continue to shape aviation globally, THAI’s move offers a blueprint for other carriers grappling with similar challenges in long-haul route planning. The commitment to collaboration over competition may well define the next chapter of aviation diplomacy and business resilience.
Official Sources Referenced:
- Thai Airways – Official Newsroom
- Federal Aviation Administration (FAA)
- International Civil Aviation Organization (ICAO)
- Tourism Authority of Thailand (TAT)
- Civil Aviation Authority of Thailand (CAAT)
- IATA Jet Fuel Monitor
- World Bank – Air Transport Strategy
