Thai airlines expand fleet, open new routes to ride post-Covid momentum

The upbeat sentiment follows three years of challenges since the Covid-19 pandemic hit in 2020, forcing airlines to downsize their operations to survive during the global downturn.

Chai Eamsiri, the CEO of Thai Airways International Plc (THAI), said the pandemic had plunged the aviation industry into its most severe crisis since World War II. In 2019, Thai Airways operated a fleet of 103 aircraft, but during the pandemic, more than 80 aircraft were grounded, and only 20 aircraft were in operation, he said.

The national flag carrier entered a business rehabilitation plan to address its debts caused by the Covid-19 crisis, leaving THAI with a fleet of 69 aircraft. It plans to increase its fleet strength to 75 aircraft in 2024 and to 98-100 aircraft by 2025 to support the recovery of the tourism sector, Chai said.

Recently, Thai Airways restructured its aviation business group and transferred 20 aircraft from Thai Smile Airways to Thai Airways.

India is one of the first markets to return to the 2019 pre-Covid levels, with approximately 65 flights per week, he said. The European market previously had nine destinations, and now there are seven. Thai Airways is also looking at the East Asian market, especially as the China market has not fully recovered, he said.

“The national airline is planning to adjust its strategy to operate flights to Japan, catering to Thai tourists' preferences for travelling to Japan. Additionally, we are continuously exploring opportunities in the Middle East market, especially after launching direct flights to Jeddah, Saudi Arabia,” the THAI CEO said.

Tassapon Bijleveld, the CEO of Thai AirAsia X, said that before the pandemic, Thai AirAsia had a fleet of 63 aircraft, but the widespread impact of Covid-19 had forced the airline to reduce its fleet by returning nine aircraft. Currently, Thai AirAsia has 54 aircraft in operation, with seven more available to meet increased demand later this year, thanks to Bangkok's status as the number one destination in the world. This has resulted in better flight volume recovery compared to other destinations, he said.

Ready for tourism boom

If a new government implements measures to boost tourism and attract foreign tourists to Thailand, Thai AirAsia X has plans to rotate more aircraft within the AirAsia Group to accommodate additional passengers in the latter half of the year, Tassapon said.

Under its fleet expansion plan, Thai AirAsia’s goal for 2026 is to have 72 aircraft, adding about five aircraft each year, similar to the growth phase of the aviation business. In 2024, it will have 60 aircraft, with some dedicated to servicing new routes, such as two routes to Japan, namely Okinawa and Hiroshima, in addition to continuing to serve the Central Asian market after launching direct flights to Tashkent, Uzbekistan, Tassopon added.

The Thai AirAsia X CEO, said the court had approved the airline's business recovery plan on August 31, as modified according to the creditors' meeting decision on July 14. Thai AirAsia X is ready to continue its continuous growth, expanding the fleet, introducing new routes, increasing cash flow, and revenue, while managing costs efficiently, Tassapon said.

Regarding the revenue-generating fleet expansion strategy, Thai AirAsia X currently operates six dedicated aircraft. They plan to increase this number by at least 3-5 aircraft within 2024 and a total of 17 aircraft by 2027. This would allow Thai AirAsia X to have a larger fleet, expand routes, and strengthen its aviation network at Suvarnabhumi Airport, as well as create opportunities for cargo business, Tassapon added.

After the Covid-19 crisis, Thai AirAsia X has continued to provide uninterrupted service, maintaining its position as a leading low-cost carrier. It offers long-haul routes to the Japanese and South Korean markets, aiming to increase capacity to pre-Covid-19 levels by the end of 2024. Additionally, the airline is accelerating its growth in the Australian and Chinese markets and exploring opportunities in new potential markets, such as India and Central Asia, according to Tassapon.

Moving from Airbus to Boeing

Woranate Laprabang, the CEO of Thai Vietjet Air, said that the airline plans to change its entire fleet from Airbus [currently A320 and A321] to Boeing aircraft, specifically the B737 Max series. They plan to increase their fleet to 50 aircraft by the end of 2028, with the first phase starting in 2024 when six aircraft will be introduced in July, followed by 15 in 2025, and 15 more in 2026. This fleet expansion aims to support new route openings and increase flight frequencies, especially on international routes, he said. Moreover, it would allow them to efficiently manage aircraft maintenance costs, reducing expenses by 15-20%, Woranate added.

In the latter half of this year, Thai Vietjet would receive two additional Airbus A321 aircraft to accommodate increased flight frequencies, such as the Bangkok-Taipei route, which will go from two to three flights per day starting from September 27, he said. Currently, they are operating at 80% passenger load rate, including routes like Chiang Mai-Osaka, which increased from 3-4 flights per week to seven, as well as domestic routes like Chiang Mai-Phuket and Chiang Rai-Phuket, aimed at promoting cross-regional flights, he added. Additionally, they are considering opening new routes from Bangkok to Guangzhou, Taiwan, and Jakarta.

Expanding routes, fleet

Puttipong Prasarttong-Osoth, the president of Bangkok Airways, said that the airline aims to recover its business to its previous levels by preparing plans for acquiring new aircraft, opening new routes, and resuming old routes, including those to Cambodia, Vietnam, and Laos. However, the situation in Myanmar has led to a suspension of flights to that country.

“Over the past year, Bangkok Airways had to downsize its business, reducing the fleet size from the pre-Covid era when we had 40 aircraft. Currently, we have 26 aircraft, consisting of 3 Airbus A320, 13 Airbus A319, and 10 ATR 72-600. We are operating around 20-21 aircraft while the remaining 5-6 are parked awaiting maintenance,” Puttipong said.

"Initially, Bangkok Airways plans to acquire two aircraft in early 2024, and according to our plans for the next 3-5 years, we intend to expand the fleet to more than 30 aircraft. However, we need to consider the expansion plan carefully to ensure it aligns with demand and doesn't lead to overcapacity,” Puttipong said.

"Regarding Bangkok Airways’ flight route expansion in the latter half of this year, the airline has resumed services on the Bangkok-Maldives route with four flights per week starting from September. Bangkok Airways has also introduced new routes, including three flights per week each on the Lampang-Mae Hong Son, and Bangkok (Don Mueang)-Samui from October 29. Additionally, the airline is preparing to launch routes from Samui to China, specifically Samui-Changsha and Samui-Chengdu, with flights expected to start this November," Puttipong added.