Thai AirAsia CEO urges government to curb rising travel costs

[webfact]

 

Thai AirAsia‘s chief executive, Santisuk Klongchaiya, advocates for government intervention to mitigate escalating travel expenses for tourists, alongside the visa-free scheme for Chinese visitors.

 

He justifies this by citing the disproportionate resumption of travel demand compared to the supply side, particularly in the airline industry, in the past year.

 

Thai AirAsia’s capacity to serve China routes has notably reduced. Previously, they operated 148 flights per week, but currently, they only manage 104 flights per week. This reduction has caused the average airfare in the first quarter to spike by 100-200% compared to the corresponding period in 2019, with the average load factor surpassing 80%.

 

However, the airline reports a decrease in airfares for Chinese routes during the off-peak season due to seasonal factors and slow purchasing power, resulting in an average load factor of 60-70%. On the other hand, the consistent growth in local travel demand since the pandemic has caused an average load factor of over 90% for domestic flights, thereby inflating the average airfare of local airlines.

 

by Alex Morgan

Image by Laude Creator from LC Photographer

 

Full story: The Thaiger 2023-09-28

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[JoePai]

citing the disproportionate resumption of travel demand compared to the supply side

 

So buy a few more planes ?

[ezzra]

Air Asia, a fly by night airline, cancelling flights on you and instead a refund giving you credit ( big amount too) to a route they don't fly there any longer, and try to talk to anyone there, no phone, no email no humans, only a bot...

Edited September 28, 2023 by ezzra

[impulse]

47 minutes ago, JoePai said:

citing the disproportionate resumption of travel demand compared to the supply side

 

So buy a few more planes ?

Why buy new?  There's an absolute buttload of parked up Thai Airways planes scattered all over Swampy.  Looks like they haven't moved in years... 

 

I'm surprised they leave them at Swampy for everyone to see.  The least they could do is put them out on a disused military base in the middle of Nakhon Nowhere, where they won't be a grim reminder of the airline's "competence" and superior buying decisions.

 

[connda]

It's a free market.  It you can't compete - fold.

[JoePai]

36 minutes ago, impulse said:

Why buy new?  There's an absolute buttload of parked up Thai Airways planes scattered all over Swampy.  Looks like they haven't moved in years... 

 

I'm surprised they leave them at Swampy for everyone to see.  The least they could do is put them out on a disused military base in the middle of Nakhon Nowhere, where they won't be a grim reminder of the airline's "competence" and superior buying decisions.

 

Strange as I thought this was about AirAsia?

[impulse]

4 minutes ago, JoePai said:

Strange as I thought this was about AirAsia?

It is.  You suggested they buy more airplanes.  I pointed out where they could find a bunch of used ones that seem to need a new home.

 

[JoePai]

1 hour ago, impulse said:

It is.  You suggested they buy more airplanes.  I pointed out where they could find a bunch of used ones that seem to need a new home.

 

TG will be using many of these - in the news they say they are increasing routes to UK, EU and Aus

[billd766]

One wa7y to cut costs would be to lower ticket prices.

 

Another would be to cut management salaries by up to 50% for the senior management, and by 10% at the bottom end of the management ranks.

 

You are a private company. It is your problem to sort out and NOT the Thai governments.

 

https://th.wikipedia.org/wiki/ไทยแอร์เอเชีย

 

Thai AirAsia SET : AAV is a low-cost airline joint venture of Malaysia AirAsia and Asia Aviation of Thailand operate AirAsia domestic and international flights from Bangkok and other cities in Thailand

 

 

[Brickleberry]

Someone should remind this CEO that his airline is the worst culprit.

 

His airline is the ONLY airline to charge for taking payments, and his airline adds all of the fees at the end of the purchasing process. In fairness, Nok Air does the last one as well.

 

Everyone should fly Lion Air. Cheap, fair and on time (in my experience).

[mancub]

Not an advocate of the bt 300 arrival tax proposal then !

[vivananahuahin]

I wait 2 years for a refund a big money of 16000 bath, unable to pay me back and this with a medical certificate, no way, i will also claim to the Transpory Ministet about this situation.Is itca good company?

[malibukid]

i got very sick on a AA flight a few weeks ago.  an Asian guy across the aisle from me had the sniffles.  i asked him if he was sick and he said "yes"  i told the stewardess that he should not be on the flight.  she did nothing but give him a cheapo mask that of course he did not ware.  3 day latter i was in the ER on Bali.  just a heads up.

Edited September 28, 2023 by malibukid

[jacko45k]

22 hours ago, impulse said:

Why buy new?  There's an absolute buttload of parked up Thai Airways planes scattered all over Swampy.  Looks like they haven't moved in years... 

 

I'm surprised they leave them at Swampy for everyone to see.  The least they could do is put them out on a disused military base in the middle of Nakhon Nowhere, where they won't be a grim reminder of the airline's "competence" and superior buying decisions.

 

Presuming they can get them up in the air..... don't see a line of pushback tugs pulling 747s down the motoroway working well. 

[impulse]

9 minutes ago, jacko45k said:

Presuming they can get them up in the air..... don't see a line of pushback tugs pulling 747s down the motoroway working well. 

Good point.  I kinda assumed they flew in, they can fly out.  But... 

 

Still, sad to see 747's and A380s parked up like that.

 

[retarius]

This CEO seems to lack any economic nous at all. How does the government control the price of jet fuel which occupies about 40 to 50% of the expenses of an airline? Most of the rest of expenses are airplane leases (which the government doesn't control) and salaries for crew. If you cut the salaries for crew, you will end up with no crew. The guy needs firing.