Thai AirAsia Seeks Government Aid Amidst Falling Travel Demand

[snoop1130]

 

Thai AirAsia is seeing lower demand in the second and third quarters of 2024 after a strong market in 2023. The company's CEO, Santisuk Klongchaiya, says government intervention is needed to help revive the stagnant local purchasing power.

 

According to the CEO, tourism is back to its normal seasonality, with domestic market load factors falling slightly to 90% in the second quarter from 94% the previous year. This high performance though 2023 was due to pent-up demand from the COVID-19 pandemic.

 

The second quarter’s domestic load factor was also below the high of 96% experienced in the first quarter as travelers returned to regular travel patterns, which are often focused on the high season.

 

For international routes, Klongchaiya says Thai AirAsia's average load factor remained around 90% in the second quarter, a rise from the 83% of 2023 but same as the first quarter of this year.

 

Full recovery for the airliner is dependent on the Chinese market, as Thailand is not expected to achieve a target of 8 million set for 2024. Klongchaiya estimates a more realistic figure of 6-7 million Chinese tourists may be seen this year. He suggests stimulus measures to spur demand, as China is promoting domestic tourism.

 

 

Thai airlines want the government to lower the jet fuel excise tax, currently at 4.726 baht per liter, to help cut travel costs for domestic tourists.

 

Thai AirAsia plans to open 4-6 international routes, possibly including Hyderabad, Kathmandu, and Phu Quoc, and a new domestic route to Lampang starting October - its 25th domestic destination. This move will increase the total number of domestic flights to 612 per week from 35 routes.

 

By the end of the year, Thai AirAsia aims to operate 60 aircraft, an increase from the 53 during the pandemic, but still below the pre-pandemic level of 63.

 

Somradee Chitchong, deputy governor for domestic marketing at the Tourism Authority of Thailand, reported that Lampang received 2.6 billion baht in tourism income in the first half of the year, mostly from local travelers, contributing 2.38 billion baht in total.

 

File photo for reference only

 

-- 2024-07-17

 

Get our Daily Newsletter - Click HERE to subscribe

[smedly]

how about top brass taking a pay cut

[ikke1959]

Do they extra taxes too if they earn a lot???Or is that all for CEO's as bonus??? in that case get the aid there

[bkk6060]

Planes are always full I have been on.  How about learning how to properly manage an airline.

[ronster]

Planes are always full on flights I have been on , but more people might travel if they didn't triple and quadruple their price at times !!

[ab1594]

My flights last month were packed, every seat taken, maybe they need to look at other costs as it can't all be tax on fuel being the problem????

[hotchilli]

How about running a business like a business and get your house in order.. instead of pleading for help.

[NORDO]

Requesting financial assistance?    Structure on the Ala Carte system, just like TAA does to its passengers.

[Galong]

HINT: if you want more business, have a better product and competent staff.

I fly Air Asia all the time and like it, but they do screw up from time to time. 3 months ago they changed a flight to two hours earlier, so I missed it. 🤦‍♂️🤦‍♂️

[BarraMarra]

The Chinese market again, maybe Air Asia should stop putting all there eggs in this basket and think of other travelers wanting to use there Airline.

[spidermike007]

When you engage in shameless gouging and practice an ugly form of corporate greed, there are consequences, and sometimes when all is right in the world the public just simply says no, I don't think so. No I'm not going there, no I'm not going to pay triple, that's not going to happen, and instead of buying your ticket they just simply turn around and walk in another direction.

 

You can't then turn around and ask the government for assistance, you have to simply accept responsibility for failed corporate policy. Or accept the failure that you created. 

[stoner]

I didn't hear them whining like little babies during high season when they jack prices.

 

Losers.

[TheAppletons]

7 hours ago, ronster said:

Planes are always full on flights I have been on , but more people might travel if they didn't triple and quadruple their price at times !!

 

  AirAsia should raise prices.  

 

  The least expensive airline I've ever flown, if one has the wherewithal to actually plan travel.

 

  Flying KUL-BKK in a lie flat seat for 520 THB next week.  That includes fast track immigration in KUL, 40 kg of checked bags, 14 kg of carry-on, and priority boarding.  Doesn't get much better than that.  

[ronster]

56 minutes ago, TheAppletons said:

 

  AirAsia should raise prices.  

 

  The least expensive airline I've ever flown, if one has the wherewithal to actually plan travel.

 

  Flying KUL-BKK in a lie flat seat for 520 THB next week.  That includes fast track immigration in KUL, 40 kg of checked bags, 14 kg of carry-on, and priority boarding.  Doesn't get much better than that.  

I checked that flight for start November from bkk return with 20kg baggage in economy and it was around 5300bht which is cheap . Baggage is around 900 bht each way , that is on the air Asia site.