Thai AirAsia to post biggest slump in profit in a decade of operation

[webfact]

Thai AirAsia to post biggest slump in profit in a decade of operation
SUCHAT SRITAMA
THE NATION

BANGKOK: -- THAI AirAsia this year will record the greatest profit decline in its 10-year history, from Bt1.9 billion in 2013 to just Bt200 million, because of the political crisis.

The budget airline yesterday announced plans to focus on the domestic market in the new year to substitute for losses from international markets.

Chief executive officer Tassapon Bijleveld said most of the airlines in the Kingdom had experienced similar losses.

Thai AirAsia now expects to have carried about 12.1 million passengers this year, lower than its projection of 13.6 million. The average load factor will be 80 per cent, down from the targeted of 83 per cent. The airline last year carried 10.3 million passengers.

"Despite increasing capacity by 20 per cent by adding five new aircraft, the number of passengers will be up by only about 16 per cent, lower than our average annual growth of 20 per cent," Tassapon said.

Tourism authorities now expect only 24.6 million international visitors this year, down from between 25 million and 25.5 million expected previously, mainly because of internal political unrest and economic slowdowns outside Thailand.

"Political unrest in Thailand was the key factor for the decline," he said.

Decreasing jet-fuel prices will be reflected in the airline's financial performance in the second quarter next year. Moreover, the China market is expected to bounce back.

Several governments, including China's, Hong Kong's and Singapore's, have lifted the travel warnings they issued after the military coup in May. But Tassapon said the airline wanted to see martial law cancelled as well, as it makes foreign tourists wary about coming to this country.

In the meantime as international markets remain in a slump, Thai AirAsia plans to focus on the domestic market. The airline is now opening bookings for three new routes from Bangkok to Nan province in the North and to Loei and Roi Et provinces in the Northeast. All will operate twice daily, and the introductory promotion fare is Bt333 per trip.

Thai AirAsia is also studying the addition of new routes serving Chumphon, Buri Ram, Ranong, and Mae Sot in Tak province.

Next year, five new Airbus A320 planes are scheduled to arrive. The first two will come in the first quarter and the rest in the second half.

For 2015, the airline has set a target at 14 million passengers. Its main customer bases will continue to be Thai and Chinese travellers. It also plans to add more fly-through services via Don Mueang International Airport.

Thai AirAsia is also set to add more routes based outside Bangkok, such as Chiang Mai-Hong Kong, Chiang Mai-Surat Thani and Krabi-Guangzhou, as all these routes lack competitors.

At Don Mueang, Thai AirAsia has a 30-per-cent market share in terms of passenger numbers, followed by Nok Air with 27 per cent, Thai Airways and THAI Smile with 21 per cent and other players with 17 per cent. A major renovation of part of Don Mueang is scheduled to be complete next quarter. Once the airport is fully opened, passenger capacity should rise from the current 16 million to about 30 million.

Several other airlines such as Orient Thai, Thai Lion Air, Thai AirAsia X, and V Air, as well as charter airlines, are operating at Don Mueang. In 2015, Nok Scoot will join them.

Source: http://www.nationmultimedia.com/business/Thai-AirAsia-to-post-biggest-slump-in-profit-in-a--30250602.html


-- The Nation 2014-12-25

[terryp]

EXCELLENT NEWS ..i hope all the flights they have lost from my family and myself over the past couple of years have help them go down......i bet they have a fee for that thou

[LuckyLew]

Tourist arrivals down, economy down and they can still turn a smalll profit

They must being doing something right, maybe Thai airways can use the business modell to turn things around

AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations

Just wish they would let babies fy free like nok air

[mikemac]

Tourist arrivals down, economy down and they can still turn a smalll profit

They must being doing something right, maybe Thai airways can use the business modell to turn things around

AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations

Just wish they would let babies fy free like nok air

........................."AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations"............................

I had to fly back to CM a while back from BKK and I priced all the flights being offered by the different airlines. Ais Asia was 850 baht cheaper than Thai Airways (who I usually fly with) and their flight was due to leave about 30 minutes earlier than the TA flight.

When I checked in they charged me 850 baht for excess baggage (which would have been free with TA) which made the price the same as TA.

The flight was delayed for an hour which meant the TA flight got there 30 minutes before mine did.

You live and you learn.

Since that episode I don't even look at the prices or flight times, I just go straight to the TA counter.

[yellowboat]

Thailand's poor politcal behavior will continue to have repercussions on business. My experiencs with Air Asia are mostly positive.

[mikemac]

Thailand's poor politcal behavior will continue to have repercussions on business. My experiencs with Air Asia are mostly positive.

I have an Aussie mate in CM who flys with Air Asia all the time to Australia and back and he loves them. Each to his own.

Merry Xmas.

[canuckamuck]

They got lots of business because they were cheaper, and being cheaper people put up with some of their crap, like being late all the time. But now they aren't so cheap, so I always use Nok now.

[rhythmworx]

So what?

[Estrada]

This goes to show how many more billions of baht more than the rice scheme were lost because of the demonstrations against it. When are they going to take the organisers to court for the damage done to the Thai economy?

[newcomer71]

They are crazily cheaper if you plan your trip quite in advance and follow their newsletter applying for periodic flash offers.

I bought last month a ticket to Kuala Lumpur and back to Bkk in April for only 2,000thb all in, plus 600 thb for 20kg luggage (enough, as my business trip will last only 5 days).

Service is not much different from other carriers for a short range flight so AA is my first choice when traveling around SE Asia, and pleased to see their business model is working too.

[JAG]

Serves them right for painting their aeroplanes red, and dressing their girls in those (oh so hot) red outfits.

(removes tongue from cheek).

[toybits]

I am so happy I stopped using Air Asia and moved my business to another Airline which treats me like a paying passenger that I am. An Airline (like Air Asia) that treats passengers like Cattle is not the kind of carrier I would like to use. So I really don't care if they loose money - because they don't care about how their passengers feel anyway. So we come out even. ha ha...

[shunima]

It's a joy to read that obviously all the miserable people here don't fly with AA. That's probably the reason why most of the 50+ flights I had were really pleasant with lots of smiles (Listen TG) and service I wouldn't expect from a LCC. They developed a good product imho...

[rajyindee]

They got lots of business because they were cheaper, and being cheaper people put up with some of their crap, like being late all the time. But now they aren't so cheap, so I always use Nok now.

Smart move!

Thai Air Asia

Nok Air

[asdecas]

Tourist arrivals down, economy down and they can still turn a smalll profit

They must being doing something right, maybe Thai airways can use the business modell to turn things around

AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations

Just wish they would let babies fy free like nok air

........................."AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations"............................

I had to fly back to CM a while back from BKK and I priced all the flights being offered by the different airlines. Ais Asia was 850 baht cheaper than Thai Airways (who I usually fly with) and their flight was due to leave about 30 minutes earlier than the TA flight.

When I checked in they charged me 850 baht for excess baggage (which would have been free with TA) which made the price the same as TA.

The flight was delayed for an hour which meant the TA flight got there 30 minutes before mine did.

You live and you learn.

Since that episode I don't even look at the prices or flight times, I just go straight to the TA counter.

And whose fault is it that you didn't check Air Asia's baggage policy?

[rainman333]

if you are not careful, they will nickle and dime you on just about anything they can think of, otherwise, they are an ok airline

[dluek]

I suspect Air Asia's Thailand business was down partly b/c of the political crisis and partly b/c Nok Air is simply beating them out for quality and value. I fly somewhere domestically almost every month and always book whichever airline is cheapest: 9 times out of 10 it's Nok Air. Doesn't always appear so at first but when you factor in Air Asia's checked bag charge, Nok usually wins. Nok also let's you pre-select seats for free and gives you a snack on board. It's a consistently better experience than Air Asia, in my opinion.

[robertthebruce]

the only positive with ''Air Asia'' is most of there Aircrafts, are new.....

I dont find them cheap at all...

[rajyindee]

I suspect Air Asia's Thailand business was down partly b/c of the political crisis and partly b/c Nok Air is simply beating them out for quality and value. I fly somewhere domestically almost every month and always book whichever airline is cheapest: 9 times out of 10 it's Nok Air. Doesn't always appear so at first but when you factor in Air Asia's checked bag charge, Nok usually wins. Nok also let's you pre-select seats for free and gives you a snack on board. It's a consistently better experience than Air Asia, in my opinion.

Thai Air Asia's add on fees are similar to Nok's. The only difference is that Air Asia's are optional (bags, seat selection), whereas Nok's are compulsory (airport tax, insurance, admin fee and VAT).

[SOTIRIOS]

........prosperity is a mind-set that must be shared.....

...told you Tom......

[rajyindee]

the only positive with ''Air Asia'' is most of there Aircrafts, are new.....

I dont find them cheap at all...

What do you consider "cheap"?

[dbrenn]

Tourist arrivals down, economy down and they can still turn a smalll profit

They must being doing something right, maybe Thai airways can use the business modell to turn things around

AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations

Just wish they would let babies fy free like nok air

........................."AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations"............................

I had to fly back to CM a while back from BKK and I priced all the flights being offered by the different airlines. Ais Asia was 850 baht cheaper than Thai Airways (who I usually fly with) and their flight was due to leave about 30 minutes earlier than the TA flight.

When I checked in they charged me 850 baht for excess baggage (which would have been free with TA) which made the price the same as TA.

The flight was delayed for an hour which meant the TA flight got there 30 minutes before mine did.

You live and you learn.

Since that episode I don't even look at the prices or flight times, I just go straight to the TA counter.

Nok Air is pretty good, and cheaper than TA. I fly with them a lot when I want a weekend break.

I avoid Air Asia - every time I've flown them it's been a horrible experience from start to finish.

[bangon04]

"At Don Mueang, Thai AirAsia has a 30-per-cent market share in terms of passenger numbers, followed by Nok Air with 27 per cent, Thai Airways and THAI Smile with 21 per cent and other players with 17 per cent"

and the other 5 per cent of passengers who go to Don Mueang obviously realise they have gone to the wrong airport and leave again without taking any flight....

[Asiantravel]

Tourist arrivals down, economy down and they can still turn a smalll profit

They must being doing something right, maybe Thai airways can use the business modell to turn things around

AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations

Just wish they would let babies fy free like nok air

" they offer good flight prices to many destinations "

you must be joking?

[mikiea]

h

Tourist arrivals down, economy down and they can still turn a smalll profit

They must being doing something right, maybe Thai airways can use the business modell to turn things around

AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations

Just wish they would let babies fy free like nok air.... what you are saying is, everyone on the plane must pay for your baby in the form of higher fares for them ? did i get that right? no one, i will say this again no one wants to pay gor your baby. nothing is free. they say it is free then charge all the rest for your baby. how do you not know this? basic econ 101. :-)

........................."AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations"............................

I had to fly back to CM a while back from BKK and I priced all the flights being offered by the different airlines. Ais Asia was 850 baht cheaper than Thai Airways (who I usually fly with) and their flight was due to leave about 30 minutes earlier than the TA flight.

When I checked in they charged me 850 baht for excess baggage (which would have been free with TA) which made the price the same as TA.

The flight was delayed for an hour which meant the TA flight got there 30 minutes before mine did.

You live and you learn.

Since that episode I don't even look at the prices or flight times, I just go straight to the TA counter.

[Ricardo]

I suspect that the launch in January of Thai Lion Airways was another contributory factor.

Their fleet is building rapidly, they undercut TAA on the routes they have started operating thus far, and include 15 kgs of luggage & seat-selection within the price.

Their Thai-base is also DMK, so it's head-to-head competition, all good for us customers !

[masuk]

Thailand's poor politcal behavior will continue to have repercussions on business. My experiencs with Air Asia are mostly positive.

I have an Aussie mate in CM who flys with Air Asia all the time to Australia and back and he loves them. Each to his own.

Merry Xmas.

...and this Aussie is rapidly losing interest in an airline which charges such exorbitant fuel surcharges.

Over $70.00 each way to Australia!!

[jacksam]

Tourist arrivals down, economy down and they can still turn a smalll profit

They must being doing something right, maybe Thai airways can use the business modell to turn things around

AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations

Just wish they would let babies fy free like nok air

........................."AirAsia making a profit one surcharge at a time

Love them or hate them, they offer good flight prices to many destinations"............................

I had to fly back to CM a while back from BKK and I priced all the flights being offered by the different airlines. Ais Asia was 850 baht cheaper than Thai Airways (who I usually fly with) and their flight was due to leave about 30 minutes earlier than the TA flight.

When I checked in they charged me 850 baht for excess baggage (which would have been free with TA) which made the price the same as TA.

The flight was delayed for an hour which meant the TA flight got there 30 minutes before mine did.

You live and you learn.

Since that episode I don't even look at the prices or flight times, I just go straight to the TA counter.

So basically you went to airport with excess baggage knowing the booking conditions and as a result was charged. I fly AirAsia very often and find the service excellent as well as by far the cheapest.

[KhaoNiaw]

I've generally had good experiences with Air Asia. For domestic flights, I usually go with the cheapest and often find that after going through the booking process Air Asia come out a bit cheaper than Nok Air. Quite happy flying with either.

Edited December 25, 2014 by KhaoNiaw

[rajyindee]

...and this Aussie is rapidly losing interest in an airline which charges such exorbitant fuel surcharges.

Over $70.00 each way to Australia!!

Thai AirAsia doesn't fly to Australia ... only as far as KL (with zero fuel surcharges). It's a different airline responsible for your long-haul flight (and fuel surcharges).

Edited December 25, 2014 by rajyindee