Thai AirAsia cuts 2020 passenger target by 51%

[snoop1130]

Thai AirAsia cuts 2020 passenger target by 51%

By THE NATION

 

 

Low-cost carrier Thai AirAsia (TAA) has cut its passenger target for 2020 to 11 million, down by 51 per cent on last year, while aiming to fill 80 per cent of seats, down from 85 per cent.

 

TAA said it will closely monitor the situation, especially in the latter half of the year when travel restrictions to curb Covid-19 are likely to ease and regional travel is expected to return.

 

The company said it stands ready to serve the Chinese market, which is expected to recover soon. Thailand remains the number one destination for Chinese travellers.

 

Meanwhile, TTA major shareholder Asia Aviation Plc (AAV) today (May 13) announced its operating results for the first quarter of 2020 that showed total revenue of Bt9.399 billion, down 19 per cent year on year, with a net loss of Bt671 million.

 

TAA carried a total of 4.5 million passengers during the period, down 23 per cent YoY with a load factor of 84 per cent, amid travel restrictions in light of the Covid-19 crisis.

 

The airline has adjusted its network and capacity to match travel demand, reducing flight frequencies and cancelling routes to at-risk countries. The adjustments saw its available seat kilometres (ASK) fall by 30 per cent from last year to 4.834 billion.

 

Santisuk Klongchaiya, CEO of Asia Aviation and Thai AirAsia, said the entire service industry, including AirAsia, had faced impacts from the Covid-19 outbreak during the latter end of the first quarter, which had depressed travel demand and prompted many countries to impose travel restrictions.

 

To comply with instructions from the Civil Aviation Authority of Thailand (CAAT), TAA suspended its international flights between March 22 and May 31 while domestic flights were suspended between April 1 and 30.

 

TAA resumed operations on major domestic routes on May 1 on the back of regulatory easing measures and an improved Covid-19 situation in Thailand.

 

The partial resumption, under strict CAAT health standards and oversight, was for necessary travel, including for business, work and passengers returning home, rather than for tourism. International flights are expected to resume in the near future once border restrictions are lifted.

 

Meanwhile, the company has adjusted its business plans to adapt to the current changing situation, especially in terms of managing and containing costs. TAA said top executives and senior employees have taken voluntary salary cuts, while reserve capital is being sought through soft loans requested from the government, which are currently being reviewed.

 

The company is also revisiting and reviewing its future investment plans, with all significant capital expenditures suspended or delayed. New aircraft acquisitions may be suspended this year to maintain a fleet appropriate to circumstances.

 

“We are working hard to manage our capital in spite of this crisis, but we are not stagnating. We are using this opportunity to improve our passenger service, especially in terms of security and hygiene, and introducing innovations to reduce physical contact. Innovative revenue sources are also being created, like AirAsia Delivery, a home delivery service for our most popular Santan menu items. These are opportunities we have identified in this crisis and we are confident that we will emerge from the situation stronger than before,” Santisuk said.

 

Source: https://www.nationthailand.com/business/30387795?utm_source=category&utm_medium=internal_referral

 

-- © Copyright The Nation Thailand 2020-05-13

 

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[thedemon]

So people order low-cost airline food for home delivery?

 

Who would have believed that a few months ago?

[BritManToo]

3 minutes ago, thedemon said:

So people order low-cost airline food for home delivery?

Who would have believed that a few months ago?

I won't be ordering anything from AirAsia until they sort out my ticket credits for the 4 flights they cancelled.

They have time to make silly press releases, but no time to sort out refunds for their 'former' customers.

The government shouldn't loan them money either, Thailand has it's own airline, it shouldn't be bailing out direct competitors.

Edited May 13, 2020 by BritManToo

[jaiyen]

Why do so many companies and especially TAT, like to quote targets ? Nobody can predict what is really going to happen so the info is useless. Better to say anything than wait for the reality.

[tomazbodner]

To be honest - Air Asia low cost inflight meals were often better than those of many of the full service airlines.

 

But no, I don't see any reason why I'd want their food delivered home. 7-Eleven meals are better than what they serve, still.

[jomtien99]

Air Asia - credit my account as promised. This is a joke, been more than 6 weeks, and do not even try to chat with AVA - total waste of time. customer satisfaction = Big Zero

[scorecard]

12 minutes ago, jomtien99 said:

Air Asia - credit my account as promised. This is a joke, been more than 6 weeks, and do not even try to chat with AVA - total waste of time. customer satisfaction = Big Zero

Yes very frustrating in terms of total time and in terms of the disfunctional Ava robot.

 

My credit took 7 weeks and is now in my AirAsia Credit 365 account. A long time but it did eventually come.

 

My trip was Sydney to Chiang Mai and return and I will rebook the same trip later and use the credit to pay for it.

 

But right now no flights and I'm not going to book until flights have resumed and been operating without any incident* for about 2 months.

 

(* meaning: no flight cancellations, no difficulty transfer to next flight at Kuala Lumphur,  and additional documents etc., needed are workable with not too much difficulty, and perhaps with some luck the quarantine period and place has relaxed somewhat.

Edited May 14, 2020 by scorecard

[scorecard]

3 hours ago, tomazbodner said:

To be honest - Air Asia low cost inflight meals were often better than those of many of the full service airlines.

 

But no, I don't see any reason why I'd want their food delivered home. 7-Eleven meals are better than what they serve, still.

Agree re AirAsia in-flight meals, last November Chiang Mai to KL (1 in-flight pre-booked meal), then KL (2 in-flight pre-booked meals).

 

Each time a main course plus a desert and a coffee. Quite tasty, good quality, nicely warm when served, good portions. And no trolley blocking the aisle trying to serve every passenger. 

 

No complaints whatever.

[ubon farang]

15 hours ago, BritManToo said:

I won't be ordering anything from AirAsia until they sort out my ticket credits for the 4 flights they cancelled.

They have time to make silly press releases, but no time to sort out refunds for their 'former' customers.

The government shouldn't loan them money either, Thailand has it's own airline, it shouldn't be bailing out direct competitors.

Good luck with that sir hardest part is trying to contact them and most times they dont speak English

[BritManToo]

Just now, ubon farang said:

Good luck with that sir hardest part is trying to contact them and most times they dont speak English

Already made my claims on 23rd March, had a confirmation email ...... then nothing.

[scorecard]

1 hour ago, ubon farang said:

Good luck with that sir hardest part is trying to contact them and most times they dont speak English

AirAsia has temporarily suspended all it's phone lines so spoken conversations with them, are impossible/close to impossible.

 

When I did get some response on the AirAsia Twitter chat line it was always in English. 

[scorecard]

3 hours ago, jomtien99 said:

Air Asia - credit my account as promised. This is a joke, been more than 6 weeks, and do not even try to chat with AVA - total waste of time. customer satisfaction = Big Zero

Yes very frustrating in terms of total time and in terms of the disfunctional Ava robot.

 

My credit took 7 weeks and is now in my AirAsia Credit 365 account. A long time but it did eventually come.

 

My trip was Sydney to Chiang Mai and return and I will rebook the same trip later and use the credit to pay for it.

 

But right now no flights and I'm not going to book until flights have resumed and been operating without any incident* for about 2 months.

 

(* meaning: no flight cancellations, no difficulty transfer to next flight at Kuala Lumphur,  and additional documents etc., needed are workable with not too much difficulty, and perhaps with some luck the quarantine period and place has relaxed somewhat.

 

 

[ubon farang]

20 hours ago, scorecard said:

AirAsia has temporarily suspended all it's phone lines so spoken conversations with them, are impossible/close to impossible.

 

When I did get some response on the AirAsia Twitter chat line it was always in English. 

Look i dont fly air asia any more ok After the flight from hell from Bangkok to Singapore when me and wife thought our number was up that did the trick I sooner pay the extra dollars to fly with a good airline So I am happy for you 

[delgarcon]

So, they're aiming to fill 80% of seats, when other airlines are going to leave middle seats empty  Asian mentality, take their money and don't worry about their health and safety!