Thai AirAsia targets 40% home market share by 2023, plans Japan expansion

Thai AirAsia, a leading low-cost airline, has set a objective to command 40% of the passenger market share domestically by the shut of 2023. This comes as the airline intends to introduce two additional routes in Japan in the upcoming yr.
In a revealing disclosure, Santisuk Klongchaiya, the Chief Executive of Thai AirAsia, mentioned that the airline’s market share in the first half of the current year was 37%, a noticeable enhance from the 33% recorded prior to the pandemic. He attributed this progress to the spectacular efficiency of home routes, with a mean load issue of 94% on 32 routes resulting in 21 provinces and eight cross-regional routes.
The Trade Competition Commission has been in dialog with a number of low-cost carriers in Thailand relating to airfares. Santisuk confirmed that the airline has already provided a proof of its price construction to the regulatory body. Additionally, he identified that the current ticket prices are regulated by the Civil Aviation Authority of Thailand (CAAT), and Thai AirAsia has not violated any of CAAT’s pricing guidelines.
In the domestic market, Thai AirAsia is the exclusive operator on a number of routes, including Ranong, Chumphon, Loei, and Hua Hin-Chiang Mai. While current airfares are 10-20% larger than in 2019, Santisuk justified this by stating the discrepancy between provide and passenger demand, significantly in relation to the number of aircraft.
Thai AirAsia’s strategic plan includes a gradual enhance in capability on existing routes, rather than choosing new ones. Zany aims to have fifty four jets in operation by the tip of the year, a considerable enhance from the 45 jets it had in the first half of the year.
Looking ahead to 2024, the airline is planning to broaden its fleet to 60 jets. This contains new Airbus A321 deliveries, which supply a further hour of flight time and have a larger seating capacity of 236, in comparison with the existing 180 seats on an Airbus A320.
Santisuk additionally revealed the airline’s plans to leverage the increasing demand for Japan by adding new routes to Okinawa and Hiroshima. This choice came after the flights to Fukuoka saw a load factor exceeding 80%.
“Next year we purpose to match 2019 levels with at least 22 million passengers, up from 20 million projected for this 12 months.”

However, the slower financial progress in China has led Santisuk to counsel that the new Thai government should contemplate waiving visa-on-arrival charges for Chinese travellers. He argued that the current rate of 2,000 baht is pricier than different countries.
Tansita Akrarittipirom, the Director of Commercial Operations at Thai AirAsia, revealed that the airline at present operates in 11 destinations throughout 18 routes in China and intends to add extra cities later this yr. Additionally, she indicated that flights in India may also be a main focus, with the intention of including to the prevailing eight routes. However, she acknowledged the challenges posed by the restricted seat allocations between Thailand and India, reports Bangkok Post.
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