Thai AirAsia is strategically focusing on expanding its route network to India and within Southeast Asia in the latter part of the year to offset the impact of reduced flights to China, which continue to face challenges due to the slow economy and heightened competition from domestic travel.
Tansita Akrarittipirom, the head of commercial at Thai AirAsia, noted a decline in the share of Chinese passengers to 17%, down from 27% pre-pandemic, while projecting an increase in the share of Indian passengers to 10% by the year’s end.
The airline is enhancing its Southeast Asian routes and bolstering capacity on other Asian routes, including leveraging the fifth freedom right to operate flights to Tokyo via Taiwan, to diversify its route portfolio.
Thai AirAsia recently introduced three new routes that will commence operations in October: Bangkok-Hyderabad, Bangkok-Phú Quốc, and Phuket-Siem Reap. Additionally, three more routes are set to launch next month to cater to the peak season later in the year, including Bangkok-Kathmandu and Phuket to Kolkata and Chennai.
These route expansions align with the additional 7,000-seat allocation granted by the Civil Aviation Authority of Thailand (CAAT) to Thai carriers, with Thai AirAsia securing 40% of this quota.
With Indian passengers dominating flights bound for India and growing interest from Thai outbound tourists, the airline is capitalizing on the visa-fee waiver program for Thai nationals applying for an Indian Visa, particularly benefiting beach destinations like Phuket, Krabi, and Pattaya.
Thai AirAsia is in discussions with the Indian government and CAAT for potential future increases in seat quotas, aiming to introduce flights to major Indian cities like Delhi and Mumbai.
Despite the growing demand from Indian passengers, it may take over five years to match the significance of the Chinese market in the airline’s portfolio due to flight quotas and differing purchasing power dynamics.
By the end of 2024, Chinese passengers are anticipated to represent 20% of the total international passengers (estimated around 8-9 million), while Southeast Asian and Indian passengers would constitute 50% and 10%, respectively. The airline could potentially introduce two more Chinese routes from Chiang Mai and Bangkok during the high season.
Thai AirAsia is targeting 21-22 million passengers this year, nearly reaching the 2019 booking numbers of 22.1 million. Enhanced connectivity between airline networks, especially with the relocation of Thai AirAsia X operations to Don Mueang Airport, is expected to strengthen transit passenger services.
