Thai AirAsia CEO, Tassapon Bijleveld, stated the carrier plans to expand internationally over the next five years, expanding its ratio of international to domestic services to 70:30 from the current 50:50, as the Thai domestic market becomes saturated. The LCC is targeting cities within a four-hour flying range from Thailand.
Thai AirAsia’s planned aggressive regional expansion is intended to keep pace with the growth in capacity resulting from fleet expansion. The carrier, which currently operates a fleet of ten A320s and six B737s, will take delivery of two new A320s in 4Q2009 and eight more A320s in 2010, as it phases out its B737 equipment. By 2011, the carrier will operate a fleet of 25 A320s, growing to 30 in 2012 and to 40 beyond this.
AirAsia’s shares slipped 0.7%, as the carrier reported a 19% increase in passenger numbers in 3Q009, to 3.6 million, as the carrier expanded capacity (ASKs) by 13%. See separate report: AirAsia’s growth continues in 3Q2009: Pax up 19%
Association of Asia Pacific Airlines (AAPA) Director General, Andrew Herdman, meanwhile stated the region's full service carriers' Sep-2009 traffic figures “offer some encouragement amidst signs of a continuing pickup in consumer confidence and economic activity, led by the Asia Pacific region”.
However, he warned that “airlines are still facing significant challenges” and that “recovery still looks quite fragile”, with shrinking traffic volumes, combined with lower yields, negatively affecting revenues and profitability”. See separate report: AAPA sees improved Sep-2009 traffic, but “significant challenges” still exist
Asia Pacific selected airlines daily share price movements (% change): 26-Oct-09
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.