Thai AirAsia to expand during downturn

18 Feb 2009

BANGKOK: Forget the economic meltdown - Thai AirAsia says it is on track to continue its expansion this calendar year, boosting both its fleet and route network.

In the same week that Singapore Airlines announced an 11% cut in capacity - and the retirement of 17 aircraft - Thai AirAsia, the Bangkok-based affiliate of the Malaysian AirAsia group reconfirmed plans to add four new Airbus A320s to its 14-strong fleet and six new destinations. The first plane went into service this month.

The airline’s CEO Tassaporn Bijleveld told the Bangkok Post newspaper that while the airline took a hit in 2008 from fuel hedging losses and the Suvarhabhumi airport closure in late November, it expects to turn its balance sheet around in 2009 with “a good profit”.

“There should be a smile on our face in 2009,” he told the newspaper.

The six new routes will be added to destinations in China and India. But the carrier has not revealed which centres yet other than to confirm they would be between three and four flying hours from Bangkok.

They will come in addition to the burgeoning reach of fellow AirAsia Group carriers, including long-haul discounter AirAsiaX which is soon to start Kuala Lumpur to London services and expanding its Australian reach from Melbourne and Brisbane to Sydney as well.

Tassaporn says improving politic al stability in Thailand had seen a faster than expected upturn in passenger demand. Load factors in January reached between 76% and 78% and he expects an overall 85% figure in 2009.

The airline is also experiencing success in introducing added value services for customers, such as a premium assigned seating which took effect Tuesday where for a modest premium, passengers could opt to sit in the first five rows of the aircraft, or by an emergency exit.

Tassaporn says it was important for business to expand and show confidence in a downturn.

“Retreating does not reduce problems. We believe that expansion and market stimulation are key to enabling us to survive the economic meltdown and grow,” he told the Bangkok Post on Tuesday.