AVIATION

Thai AirAsia (TAA) saw its passenger load increase by 22.7% year-on-year in the first quarter to 1.81 million, further cementing its dominance of the local budget air travel market.

Figures from the low-cost airline's parent AirAsia Bhd showed a load factor of 84%, up from 81% in the same period last year. TAA raised its seating capacity in the period by 17.4% to 2.15 million.

Revenue passenger kilometres _ the number of revenue-paying passengers times kilometres flown _ increased by 23.5% to 1.91 million.

With its fleet of 20 Airbus A320 jets, TAA flew 11,971 flights in the first quarter, up 10.8% year-on-year, for an average distance of 1,049 km, up from 1,031 km before.

The airline expects 7 million passengers this year, up from 5.8 million last year, when it recorded a load factor of 78%.

It did not provide financial results for the quarter but in March announced a full-year revenue target of 15 billion baht, up from 12.4 billion last year.

Airports of Thailand Plc said TAA led the budget carrier segment with a 58% share of flight numbers and 55% of passengers through Suvarnabhumi Airport.

Tassapon Bijleveld, TAA's chief executive, said the airline was also on course for its long-awaited initial public offering (IPO) in the fourth quarter, aimed at raising 6 billion baht to support its growth plan.

The IPO will result in the two existing shareholder groups _ AirAsia Bhd (49%) and TAA's six Thai directors including Mr Tassapon (51%) _ diluting their shares to allow the public a 25% stake.