Thai AirAsia cuts 2014 passenger estimates

[webfact]

Thai AirAsia cuts 2014 passenger estimates
SUCHAT SRITAMA
THE NATION

Effects of coup cited; airline continues network expansion

BANGKOK: -- Thai AirAsia Co has lowered its passenger projection for this year from 13.2 million to 12.6 million because of the political crisis that has hit inbound travel during the past two months.

Santisuk Klongchaiya, director of commercial operations, said the airline had also lowered its estimate of average load factor for 2014, initially set at 83 per cent, to 80 per cent. Total income and profit are also expected to be lower than previous projections.

The declines are results of the military seizing power from the elected government last month, as inbound tourism became sluggish after about 70 countries warned their citizens to avoided travelling to Thailand.

Furthermore, growth in passenger numbers is expected to drop from the original projection of 30 per cent to 15-20 per cent this year for the same reason.

Santisuk said Thai AirAsia would delay the delivery of three aircraft set for this year. The airline so far has received four planes since January and will get one more in September.

Last year was one of the best for Thai AirAsia with a load factor over 80 per cent, and it had hoped for a similar figure this year.

Despite a slow May and June, new bookings for July and August have bounced back, to 80 per cent of capacity, and those for September had already reached 30 per cent yesterday.

The airline also remains committed to network expansion both domestically and overseas.

In the domestic market, Thai AirAsia yesterday announced a new route between Bangkok (Don Mueang) and Sakon Nakhon in the Northeastern region. The new service will begin on October 1 with two daily flights.

Passengers who make reservations online from now until August 10 will enjoy

an introductory fare of Bt390.

The route is expected to run an 80-per-cent load factor during peak season.

Thai AirAsia already operates four other routes from Bangkok to the Northeast - Udon Thani, Khon Kaen, Ubon Ratchathani and Nakhon Phanom.

Santisuk said the airline also planned to link Chiang Mai or Phuket with overseas destinations, particularly in China, in order to meet high demand. Chinese tourists are expected to flock into the Kingdom now that visa fees have been waived for them.

Thai AirAsia is also making some strategic plans to deal with Thai Smile Air's planned relocation from Suvarnabhumi Airport to Don Mueang International Airport in the near future.

Santisuk said Thai AirAsia was confident of remaining the biggest player in the low-cost domestic market.

At Don Mueang, it holds 60 per cent of the market while the rest belongs to Nok Air.

In the wake of the two disasters hitting Malaysia Airlines, AirAsia Group operating in and out Malaysia is reported to have gained a lot of passengers, including Chinese.

However, only a few passengers have shifted to Thai AirAsia.

Source: http://www.nationmultimedia.com/business/Thai-AirAsia-cuts-2014-passenger-estimates-30239680.html


-- The Nation 2014-07-29

[terryp]

gave up on AA along time ago ...too many add ons esp the debit card fee PER PASSENGER????...too many delay,s poor service and I dont like being just a number , I am a customer

[Archie Pelago]

The two posts above have nothing to do with the OP - they are just the usual Air Asia bashing complaints.

terryp - Air Asia charges a fee when you pay by credit card. You either accept it or you find a different airline. Pretty simple.

wdr - I have flown Air Asia more than 60 times in the past 2-3 years (and I use a range of other airlines too). Have never had a debit card declined, and if I did I would expect to pay more if I went to the physical office/counter to pay for a ticket. Air Asia charges significantly more if you don't book online, it is part of their business model

Honestly there seems to be a club of Air Asia knockers that come out of the wood work everytime there is a topic about Air Asia- in this case both early posts are way off topic. The usual Air Asia bashing is getting a bit old, go find another airline to fly. There is plenty of competition, make use of it.

Edited July 29, 2014 by Archie Pelago

[Thailand]

"The declines are results of the military seizing power from the elected government last month, as inbound tourism became sluggish after about 70 countries warned their citizens to avoided travelling to Thailand."

How can that be true, everything is hunky dory and tourists are flocking to Thailand.

TAT said so, you simply can't trust these manufactured figures. I wonder if other airlines are also falsifying

figures?

[ginjag]

I do not mind having a seat comfortable with hand luggage only on a 50 minute flight from Udon to D.Muang. for free--175 baht--395 baht -550 baht and other offers.

Splendid cattle class, love it. Never a delay from my city, never a problem paying on line, I do not need food and drink, I need a newish aircraft, with good check in.

I would hate to sit next to a moaning Minnie for 50 mins, go to Nok or Smile, no probs.

[ginjag]

gave up on AA along time ago ...too many add ons esp the debit card fee PER PASSENGER????...too many delay,s poor service and I dont like being just a number , I am a customer

Why not try Thai Airways be patriotic help them out of their crisis, they are far worse than AA and 3 times more expensive.

[Ricardo]

The declines are results of the military seizing power from the elected government last month

The coup was in May, it's now late-July, do you think someone should tell 'The Nation' that this is more than a month ago, or should we leave their editors in ignorance ?

At Don Mueang, it holds 60 per cent of the market while the rest belongs to Nok Air

Aren't there more-than-two airlines running domestic-flights out of Don Muang, the new very-popular Thai Lion for one, is already making inroads into Air Asia's price-sensitive target-market, offering lower-fares & a free 15kg luggage-allowance ? And aren't Orient-Thai/One-Two-Go still also based there ?

[Archie Pelago]

At Don Mueang, it holds 60 per cent of the market while the rest belongs to Nok Air

Aren't there more-than-two airlines running domestic-flights out of Don Muang, the new very-popular Thai Lion for one, is already making inroads into Air Asia's price-sensitive target-market, offering lower-fares & a free 15kg luggage-allowance ? And aren't Orient-Thai/One-Two-Go still also based there ?

Several actually - Nok, Air Asia, Thai Lion, plus smaller operators Orient Thai and City Airways (currently both only operating DMK-HKT sectors.

Later Thai Smile will also move to DMK if the above article is correct.

True enough - Nok, Thai Lion, Orient Thai and City Airways all have a basic checked baggage inclusion which Air Asia don't offer. I fly all of these airlines dependant upon price, and while I do have preferences - whoever has the best fare at a reasonable time on the day & route I need to travel gets my business.

Oh, and Scoot will move operations to DMK on September 1st from Suvanabhumi, in time for their operational consolidation with the new NokScoot offshoot.

Its all happening at Don Mueang...

Edited July 29, 2014 by Archie Pelago

[Archie Pelago]

snip

Try to book a flight booking out from Penang or Kuala Lumpur then you run in big trouble using your Thai issued Debit Card.

I have - I do this quite often. I use my Kasikorn issued K-web card to pay for my Air Asia flights (and many other airline flights). Doesn't matter whether I book online in Malaysia, Singapore, Indonesia - I get an SMS OTP security code, and complete the booking. Not difficult to set up, talk to your bank. This is hardly an excuse to use to knock the airline - perhaps try to sort your banking out.

[OZEMADE]

I can book Air Asia on line or through Flight Centre, Australia to Bangkok return on a 2 month turnaround for $700-00 at the moment.

There would be a one and a half hr stopover at KL on the way over and a two and a half on the way back.

What are the bad things and the good things with this airline.

Do they have movies, food, drinks, luggage weight carry on or stored?

Qantas and Thai over this time period Oct-Nov 2 mts are wanting Qantas $950 and Thai $1300.

[ginjag]

At Don Mueang, it holds 60 per cent of the market while the rest belongs to Nok Air

Aren't there more-than-two airlines running domestic-flights out of Don Muang, the new very-popular Thai Lion for one, is already making inroads into Air Asia's price-sensitive target-market, offering lower-fares & a free 15kg luggage-allowance ? And aren't Orient-Thai/One-Two-Go still also based there ?

Several actually - Nok, Air Asia, Thai Lion, plus smaller operators Orient Thai and City Airways (currently both only operating DMK-HKT sectors.

Later Thai Smile will also move to DMK if the above article is correct.

True enough - Nok, Thai Lion, Orient Thai and City Airways all have a basic checked baggage inclusion which Air Asia don't offer. I fly all of these airlines dependant upon price, and while I do have preferences - whoever has the best fare at a reasonable time on the day & route I need to travel gets my business.

Oh, and Scoot will move operations to DMK on September 1st from Suvanabhumi, in time for their operational consolidation with the new NokScoot offshoot.

Its all happening at Don Mueang...

I keep hoping for the start of a D.Muang--London, that would put the cat among the pigeons. PLEASE read this A Asia.

[Archie Pelago]

I can book Air Asia on line or through Flight Centre, Australia to Bangkok return on a 2 month turnaround for $700-00 at the moment.

There would be a one and a half hr stopover at KL on the way over and a two and a half on the way back.

What are the bad things and the good things with this airline.

Do they have movies, food, drinks, luggage weight carry on or stored?

Qantas and Thai over this time period Oct-Nov 2 mts are wanting Qantas $950 and Thai $1300.

Good points - generally cheaper than other airlines on comparable routes, good service, and the new KLIA2 terminal is a far better transit hub than the awful old LCCT which closed 2 months ago. Good onboard meals, although these cost extra and it is better to pre-book these as its cheaper than buying on board

Bad points - Luggage, seats, meals and IFE all cost extra. These aren't really bad points IMHO, the trick is to work out what extras you need and which ones you don't and budget accordingly.

No complaints with Air Asia

[CMFarang]

AirAsia is just Destroying itself with poor policies and added costs to us customers.

From #1 on my choice list , to 'avoid'. Lucky if they hit the expected volume if they do not change their ways, and then the process of winning past customers back will take along time.

Tired of seeing AA follow the corporate model of "bait and increase everything"

I imagine they will change their name as the next move.

Customers are stupid but the profit line comes from the satisfied referals .

Greed has won their hearts

Avoid AirAsia is my advise.?

[brianb1944]

Recently booked Chiang Mai to Perth return wiyh AA, total cost 426AUD. Cheapest ever, what is there to complain about?

[Ricardo]

Orient-Thai/One-Two-Go are down to just one domestic-route now ? Ye Gods !

[OZEMADE]

I can book Air Asia on line or through Flight Centre, Australia to Bangkok return on a 2 month turnaround for $700-00 at the moment.

There would be a one and a half hr stopover at KL on the way over and a two and a half on the way back.

What are the bad things and the good things with this airline.

Do they have movies, food, drinks, luggage weight carry on or stored?

Qantas and Thai over this time period Oct-Nov 2 mts are wanting Qantas $950 and Thai $1300.

Good points - generally cheaper than other airlines on comparable routes, good service, and the new KLIA2 terminal is a far better transit hub than the awful old LCCT which closed 2 months ago. Good onboard meals, although these cost extra and it is better to pre-book these as its cheaper than buying on board

Bad points - Luggage, seats, meals and IFE all cost extra. These aren't really bad points IMHO, the trick is to work out what extras you need and which ones you don't and budget accordingly.

No complaints with Air Asia

Thanks for the heads up, I will wait and look at all the fares over the next month, but it looks like AA may take some beating.

There is a mob called eDreams for really cheap flights, they keep popping up on my computer. I think they work out of Europe-Spain over there somewhere. Has anyone heard of them or used them. I cant believe how cheap they advertise their flights for.

[Archie Pelago]

AirAsia is just Destroying itself with poor policies and added costs to us customers.

From #1 on my choice list , to 'avoid'. Lucky if they hit the expected volume if they do not change their ways, and then the process of winning past customers back will take along time.

Tired of seeing AA follow the corporate model of "bait and increase everything"

I imagine they will change their name as the next move.

Customers are stupid but the profit line comes from the satisfied referals .

Greed has won their hearts

Avoid AirAsia is my advise.

The added costs are clearly visible, it is not rocket surgery to make a booking with them. If you don't need to check in baggage, choose 'no baggage'. If you don't want to pay for seat selection, click 'skip' on that page.

Your post is all emotion and little substance.

I pay less for my travel costs now than I did ten years ago. I don't always fly Air Asia, but I do when they are the cheapest on the route/date I want to fly, and that does end up being most of the time. I am saving a lot of money by using them in combination with other airlines, by doing some work and checking my options.

Does this make me a stupid customer? I don't think so.

[spidermike007]

The two posts above have nothing to do with the OP - they are just the usual Air Asia bashing complaints.

terryp - Air Asia charges a fee when you pay by credit card. You either accept it or you find a different airline. Pretty simple.

wdr - I have flown Air Asia more than 60 times in the past 2-3 years (and I use a range of other airlines too). Have never had a debit card declined, and if I did I would expect to pay more if I went to the physical office/counter to pay for a ticket. Air Asia charges significantly more if you don't book online, it is part of their business model

Honestly there seems to be a club of Air Asia knockers that come out of the wood work everytime there is a topic about Air Asia- in this case both early posts are way off topic. The usual Air Asia bashing is getting a bit old, go find another airline to fly. There is plenty of competition, make use of it.

I agree completely with you. I like AA. They do a good job. One of the tricks to using them domestically, is to print out your boarding pass online. That way you can take a carry on up to 20 kilos, on board, at no charge. I do this all the time. Since you bypass the gate entirely, they do not check the weight of the bag. And with the newly instituted ability to do counter pay, at 7/11, there is no excuse to beef about the difficulty of their online payment system. It is very convenient, and as easy as the NOK system. Long live AA. They are a great alternative to the grossly overpriced Bangkok Air.

[spidermike007]

I can book Air Asia on line or through Flight Centre, Australia to Bangkok return on a 2 month turnaround for $700-00 at the moment.

There would be a one and a half hr stopover at KL on the way over and a two and a half on the way back.

What are the bad things and the good things with this airline.

Do they have movies, food, drinks, luggage weight carry on or stored?

Qantas and Thai over this time period Oct-Nov 2 mts are wanting Qantas $950 and Thai $1300.

Good points - generally cheaper than other airlines on comparable routes, good service, and the new KLIA2 terminal is a far better transit hub than the awful old LCCT which closed 2 months ago. Good onboard meals, although these cost extra and it is better to pre-book these as its cheaper than buying on board

Bad points - Luggage, seats, meals and IFE all cost extra. These aren't really bad points IMHO, the trick is to work out what extras you need and which ones you don't and budget accordingly.

No complaints with Air Asia

And you did not mention the flight attendants. They are some of the prettiest in all of Asia, in my book. I think an award should be given to the people responsible to hiring them! Long live Air Asia.

[tingtongteesood]

I would say that screwing around with the visa system and making it a lot more difficult to stay here will also greatly affect the numbers as a large number of their passengers would have been visa runners.

[Archie Pelago]

Orient-Thai/One-Two-Go are down to just one domestic-route now ? Ye Gods !

Plus Hong Kong

[Rimmer]

Off topic defamatory posts removed:

6) You will not post comments that could be reasonably construed as defamation or libel.

Defamation is the issuance of a statement about another person or business which causes that person to suffer harm. It does not have to be false to be defamatory. Libel is when the defamatory statement is published either in a drawing, painting, cinematography, film, picture or letters made visible by any means, or any other recording instruments, recording picture or letters, or by broadcasting or spreading picture, or by propagation by any other means. Defamation is both a civil and criminal charge in Thailand.

[robertthebruce]

At Don Mueang, it holds 60 per cent of the market while the rest belongs to Nok Air

Aren't there more-than-two airlines running domestic-flights out of Don Muang, the new very-popular Thai Lion for one, is already making inroads into Air Asia's price-sensitive target-market, offering lower-fares & a free 15kg luggage-allowance ? And aren't Orient-Thai/One-Two-Go still also based there ?

Several actually - Nok, Air Asia, Thai Lion, plus smaller operators Orient Thai and City Airways (currently both only operating DMK-HKT sectors.

Later Thai Smile will also move to DMK if the above article is correct.

True enough - Nok, Thai Lion, Orient Thai and City Airways all have a basic checked baggage inclusion which Air Asia don't offer. I fly all of these airlines dependant upon price, and while I do have preferences - whoever has the best fare at a reasonable time on the day & route I need to travel gets my business.

Oh, and Scoot will move operations to DMK on September 1st from Suvanabhumi, in time for their operational consolidation with the new NokScoot offshoot.

Its all happening at Don Mueang...

I keep hoping for the start of a D.Muang--London, that would put the cat among the pigeons. PLEASE read this A Asia.

I actually think a while back they did fly to,London , to Gatwick... But obviously the demand was not there, hence the reason they stopped it.

[Archie Pelago]

I keep hoping for the start of a D.Muang--London, that would put the cat among the pigeons. PLEASE read this A Asia.

I actually think a while back they did fly to,London , to Gatwick... But obviously the demand was not there, hence the reason they stopped it.

Yeah, this was Air Asia X, out of KL, that had a London flight some years back and it was dropped due to high costs.

Thai Air Asia's new longhaul sister will launch soon - Thai Air Asia X. Although they are only starting with regional flights (eg Japan, Korea, later Australia) here's hoping they will bring Europe flights in at some stage down the track.

[Archie Pelago]

And you did not mention the flight attendants. They are some of the prettiest in all of Asia, in my book. I think an award should be given to the people responsible to hiring them! Long live Air Asia.

Shhhhhhhhhhhh, trying to keep them a secret!

[rfukata]

The two posts above have nothing to do with the OP - they are just the usual Air Asia bashing complaints.

terryp - Air Asia charges a fee when you pay by credit card. You either accept it or you find a different airline. Pretty simple.

wdr - I have flown Air Asia more than 60 times in the past 2-3 years (and I use a range of other airlines too). Have never had a debit card declined, and if I did I would expect to pay more if I went to the physical office/counter to pay for a ticket. Air Asia charges significantly more if you don't book online, it is part of their business model

Honestly there seems to be a club of Air Asia knockers that come out of the wood work everytime there is a topic about Air Asia- in this case both early posts are way off topic. The usual Air Asia bashing is getting a bit old, go find another airline to fly. There is plenty of competition, make use of it.

its not bashing at all its an opinion entitled to everyone who have experienced AA. Have you flown AA to Narita? tell me about the service?

[ginjag]

I keep hoping for the start of a D.Muang--London, that would put the cat among the pigeons. PLEASE read this A Asia.

I actually think a while back they did fly to,London , to Gatwick... But obviously the demand was not there, hence the reason they stopped it.

Before their flight went into Stanstead at 8,900 baht I believe that was 3 years ago---I saw last year where they were starting a Gatwick service in Nov but didn't hear after that.

Looking at Thai Airways and say Emirates 50,000 and 43,000 baht return Surely A Asia could fill an aircraft at 34,000 baht and make money, anyone could work the revenue income with a full flight or near full to expenses incurred for the flight. Come on A. Asia. get in (dip your bread) while Thai are floundering.

[ginjag]

The two posts above have nothing to do with the OP - they are just the usual Air Asia bashing complaints.

terryp - Air Asia charges a fee when you pay by credit card. You either accept it or you find a different airline. Pretty simple.

wdr - I have flown Air Asia more than 60 times in the past 2-3 years (and I use a range of other airlines too). Have never had a debit card declined, and if I did I would expect to pay more if I went to the physical office/counter to pay for a ticket. Air Asia charges significantly more if you don't book online, it is part of their business model

Honestly there seems to be a club of Air Asia knockers that come out of the wood work everytime there is a topic about Air Asia- in this case both early posts are way off topic. The usual Air Asia bashing is getting a bit old, go find another airline to fly. There is plenty of competition, make use of it.

its not bashing at all its an opinion entitled to everyone who have experienced AA. Have you flown AA to Narita? tell me about the service?

You gain an opinion on experiences not 1 or 2.

I flew Thai Airways to London scores of times and my opinion changed no more now.

at times the best of airlines will encounter late arrivals etc.

if a 1 bag---- no food-no drink. pay double for your 50 min flight.-your problem paying on the net- sort it-- It is the busiest low cost carrier that is why it is so bad ????

At the price you pay ( your fault if you do not book on line correct) what is the problem with them ? you want seat number-food drink--for 375 bht from Udon -Dmk sorry better you go on Smile.

[Archie Pelago]

its not bashing at all its an opinion entitled to everyone who have experienced AA. Have you flown AA to Narita? tell me about the service?

One of the posts I was referring to was removed by the forum staff because it was considered defamatory. There was no balanced opinion, it was just bashing.

Have not flown Air Asia to Narita. Thai Air Asia X hasn't started flying their yet, the route doesn't become operational until September 1st from memory

[sjaak327]

Air Asia, what a poor airliner it is. Often late, no service whatsoever, cramped seats. I avoid them like the plague.

On domestic routes, both Nok and Thai are much better, and with Thai you don't have to hike to dmk, which in itself is a bonus. On the Udon route, they aren't much more expensive either,

As to taking Air Asia (x) on long haul flights, you guys must be joking, I wouldn't consider them even if they paid me.