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Thai AirAsia focuses expansion on China and new secondary bases, starting with Pattaya

Analysis

Thai AirAsia (TAA) is focusing expansion on secondary airports as Thailand's largest low-cost carrier seeks to avoid intensely competitive trunk routes. TAA plans to open three new bases over the next year which will mainly be used to pursue expansion in the fast-growing Thailand-China market.

U-Tapao Airport near Pattaya will become in late Sep-2015 TAA's fifth base after Bangkok Don Mueang, Chiang Mai, Krabi, and Phuket. TAA is allocating its last two A320 deliveries for 2015 to U-Tapao, which will initially be linked with three Chinese cities along with Singapore and Chiang Mai.

TAA plans to open two more bases in 2016 as it takes delivery of five additional A320s. All seven bases will have services to Greater China as well as domestic point to point routes, enabling visitors to bypass congested Bangkok while travelling around Thailand.

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