Low-cost carriers cave, cut major routes

Low-cost carriers cave, cut major routes

AirAsia crew members wear face masks for protection at Don Mueang airport. The airline has suspended all direct flights from Bangkok to Japan and South Korea.
AirAsia crew members wear face masks for protection at Don Mueang airport. The airline has suspended all direct flights from Bangkok to Japan and South Korea.

Low-cost airlines are not immune to the threat of the coronavirus pandemic and plan to reduce or scrap routes to four major destinations -- Japan, South Korea, India and China -- while tourism operators say the battered stock market will further weaken travel sentiment.

Thai AirAsia X, a long-haul airline under AirAsia Group, will suspend all direct flights from Bangkok to Japan (Tokyo, Osaka, Sapporo, Nagoya, Fukuoka) and South Korea (Seoul) from March 16 to June 16 in response to the outbreak.

The suspension follows the decision to temporarily halt services on all routes connecting to mainland China until March 31.

TAA also plans to stop all services to India, which yesterday had its first confirmed coronavirus death. The Indian government has suspended all tourist visas from March 13 to April 15 to prevent further spread of the disease.

TAA will operate some flights to India to fly back the remaining Indian guests in Thailand. All routes from Bangkok to eight destinations -- Bangalore, Chennai, Kolkata, Jaipur, Gaya, Varanasi, Kochi and Ahmedabad -- will be paused until April 15.

Thai Lion Air (TLA) chief executive Aswin Yangkirativorn said that starting next month, services to Japan connecting to Tokyo, Nagoya, Fukuoka and Osaka will be decreased in frequency in response to slack demand, as load factor has dropped to 30-40%.

Although fuel cost is down significantly in the past week, the airline cannot benefit from lower prices because total demand remains gloomy.

TLA cancelled the Bangkok-Mumbai route before India closed to tourists because Indian passengers were worried about the disease, resulting in lower bookings since the beginning of the contagion.

An airline executive who requested anonymity said all airlines are facing liquidity shortages. The executive said the decision to suspend services to popular countries is for both inbound and outbound markets.

"We're monitoring forward bookings and see slow demand, even during Songkran, which used to be a peak travel period," the executive said.

Complicated screening policies from government agencies that require airlines to ask for medical certificates from passengers are another reason for suspending services.

Airlines don't see these policies as an effective measure, given that infections or symptoms can show up after passengers receive certificates and prepare to board flights, the executive said.

Chairat Trirattanajarasporn, president of the Tourism Council of Thailand (TCT), agreed that travel sentiment will decline as the stock market's collapse creates a psychological spillover among potential travellers.

"Travel activities are surely going to be slow until June or once the pandemic is completely under control and people gain more confidence," Mr Chairat said.

Yesterday's TCT meeting resolved to propose additional requests to banks, including lowering interest payments by up to 50% for one year.

Operators also want regulations ensuring that at least 3 billion baht out of 150 billion baht in soft loans will be directed to the tourism segment within this month.

While Thailand has not issued an official statement to ban international arrivals from certain countries, the cancellation of visa-free and visas on arrival for some countries is curtailing tourists already, said Vichit Prakobgosol, president of the Association of Thai Travel Agents.

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