For this interview I will use cursive text to differentiate between questions and answers, it is all public knowledge naturally.
Lagoon Air is not exactly known to be a very forthcoming airline in the press or at all. Ever since they set up shop in Bangkok they have been growing steadily and it would seem their passengers rate them extremely highly. All in they are an example of a success story, but of course we really want to get the inside scoop and after a lot of back and forth we finally managed to sit down with CEO and owner of Lagoon Air, Kajsa Tova.
For this interview we where invited to their hangar at Don Mueang International Airport which has a unique set of suspended offices in the ceiling, though we have been told a proper HQ building is under construction which will soon house the majority of their staff as the hangar offices have reached capacity. Save to say if you have a fear of heights these offices are not for you. Overall we took notice of just how clean and organized the place was, we even saw some people cleaning up what appeared to be a minor oil spill. But enough of these matters letâs get into the interview:
Q: To start off with I think the first question on our minds and that of our readers would be, why did you start an airline in Thailand being Swedish yourself?
A: The answer to that is simple, just look at the aviation market, Europe is both very competitive and has a very strong on and off season, which is why you often hear of airlines going bankrupt in the off season as the income is just that much lower. In south East Asia this is not a problem we really need to deal with, surely their is ample of competition, but the market is strong year round which makes it a lot saver of a place to operate in.
Q: Next follow up question to that would naturally be, why Don Mueang it being the older and second airport serving Bangkok.
A: Exactly for that reason, originally Don Mueang was meant to close down, but demand is such it was pushed back into service and you can see combined with Suvarnabhumi we are looking at over a 100m yearly PAX. We decided to go with Don Mueang over Suvarnabhumi because of a lower competition and a more favorable location. Provided we can keep our growth we have a deal with the Thai government in which we split the cost to modernize and upgrade Don Mueang for the future.
Q: Currently you are serving mainly destinations in South East Asia and Europe, any reason for a focus specially on Europe for the long haul?
A: Ease of route scheduling mainly, Europe bound flights are easy to fit within a schedule and also match the capabilities of our fleet better. For example a route from Bangkok to Los Angeles is well over 13,000 Kilometers which is not really in the operational range for a Airbus A330-900neo which is our most capable long haul plane in the fleet.
Q: Speaking of the fleet it is quite the mix and rather heavy Airbus leaning, what the idea behind the current fleet and what are the future plans?
A: The current fleet is a mix of what was available and is available really. As a starting business one has to build up a reputation on many fronts including your credit. When we started we had talks with both Airbus and Boeing, but Boeing was not as keen to deal with us as Airbus, however Airbus very much was like you get the A330-900neo or the -800 or nothing. I assume they are trying to make that program pay off for them and well for us in order to get a decent long haul fleet it was the only option. As for the planes we own those all have been second hand examples that we have been able to get our hands on for a good price.
Q: So that is current, how about the future and could you address the Concorde?
A: The Concorde is really a marketing tool, we learned of a few that where flight capable with some work and well I made the decision to go for them. The public reaction has shown it has worked out quite well, however I do not expect them to be around for a long long time, they are old and expensive in upkeep. They are profitable against all odds, but from a business and also environmental perspective keeping them long them is not an option. As for future fleet plans currently we are in talks with Airbus about the A220, A321neo and A350 series. We have been talking with Boeing about the 777X, sadly that one keeps being pushed out because of the trouble they are going through. However we do like to have a mixed fleet and we are also curious to see what the 797 rumours will lead up being.
Q: So do you expect to keep anything of the current fleet for a longer period of time, because by the sound of things it is all meant to go?
A: You understood it correctly the current fleet will all be gone within the year if plans work out. We do understand the environmental impact of air travel and hence we are looking to operate a highly efficient fleet. Also a lot of these newer planes are more quiet and more comfortable for the passengers so it is a double win.
Q: About the rating Lagoon Air gets, some would argue it is unrealistically high with 5 stars all around, could you shed some light on this?
A: It is rather simple, first off we do not compete on the price, but on service and then we deliver on that service. Where a lot of airlines lure you in with cheap tickets and then charge you an arm and a leg for everything else, we run a 1 price model. That means if you fly with us you have a ticket and no worries, cause it includes you baggage, your drinks, your food and all other services onboard. We also ensure we properly train and pay our staff and happy employees make for happy customers.
Q: I know this is probably not a favourite subject, but a couple of weeks ago the Boarder agency in the UK confiscated a larger shipment of counterfeit goods flown in on one of Lagoon Air airplanes. Any idea what the story could be behind that?
A: Your guess is as good as mine, we take onboard cargo and assume it is properly checked and declared by the relevant authorities. That is in the end all we can do as an airline and those who decided to ship illegal goods will have to face the consequences.
Q: Last question, there is some rumblings about the senior staffing of the airline being rather heavy on the Swedish people with few Thai in there, could you share your thoughts on this matter?
A: The answer is two fold, first off the people I brought with me to start this airline all have been picked because of their experience and ability to get work permits here in Thailand. They are also people I can deeply trust which is always important if you run a business. Secondly we are training a lot of Thai people currently to join our workforce from lower end to the upper management, but these things will take time. However with the growth we are seeing I think this issue will soon be a none issue and it already shows with these grumblings mostly coming from outside of Lagoon Air and even outside of Thailand by people who do not know how things actually are. For example we currently employ over 800 people about 90% of those are Thai nationals.
That concluded the interview with Kajsa Tova, afterwards we got a guided tour by one of the Thai captains flying for Lagoon Air who indeed seemed to be quite happy with his workplace, while we didnât get to speak to many others, we really couldnât find much at all from people who seem to be unhappy with the airline and itâs staff. Overall it would seem Lagoon Air runs a very good business with attention to detail, as the captain explained when we asked why the floor of the hangar was so clean, âIf anything around you is messy or dirty you are bound to feel less pressure to clean up if you make a bit more mess. However if everything is spotless you will feel it the moment you make the mess and you will clean it up. Of course it also helps that there is always enough staff to go around to handle this.â
We for sure will look forwards to the future of Lagoon Air and see where the company will go, for now it seems they are on a roll without anything getting in their way to slow them down anytime soon.