Thai Vietjet (TVJ) is planning to replace its whole fleet of Airbus aircraft with Boeing 737 MAXs and is aiming to expand the fleet to 50 aircraft by 2028, while aiming to break even this year.
The modernisation of the entire fleet also prompted the airline to consider adopting a pay-to-fly scheme for newly-recruited pilots, which would require pilots to pay a training fee before flying Boeing 737 MAX aircraft, said Woranate Laprabang, chief executive of TVJ.
Mr Woranate said this type of employment programme has become normal practice among airlines everywhere with an estimated 2 million baht being required if licensed pilots would like to convert from flying Airbus A320 and A321 aircraft to flying Boeing 737 MAXs.
However, TVJ would absorb the training cost for existing staff if they switch to flying the Boeing aircraft.
He said most of the Thai carriers haven't recruited new pilots as they still have enough. TVJ employs 180 pilots at present to operate its fleet of 18 aircraft.
Mr Woranate said the airline has the potential to break even this year before expanding to become a major regional airline.
It aims to expand its fleet to 50 aircraft, all of which would be Boeing 737 MAXs that can provide inflight entertainment and fly further to more cities in Japan and South Korea.
At present, the airline operates 11 domestic and 10 international routes with Airbus A320s and A321s.
During the first half of 2023, the airline carried 3.67 million passengers via 547 domestic and 190 international flights per week, securing an average load factor of 85%.
Its best-selling routes included Bangkok to Fukuoka, Chiang Mai to Osaka, and Bangkok to Taipei.
The airline will lease two more Airbus A321 Neos within this year, before gradually adding two Boeing 737 MAXs to its fleet next year.
Mr Woranate said the airline expected to earn 16 billion to 17 billion baht in revenue this year, up from 9.8 billion baht recorded last year, which will be the first time the carrier has broke even since the pandemic. The number of passengers this year is expected to reach 6.5 million to 7 million, thanks to a significant increase in international passengers which accounted for 30% of the total, up from 10% last year.
However, Mr Woranate admitted the airline still has to fix the on-time performance (OTP), which is at only 60% at present, as the problem had grown since the fourth quarter of 2022, when there was a shortage of ground handling staff.
He said its performance in this regard had gradually improved to 82% during this year's second quarter.
As Srettha Thavisin from Pheu Thai Party has been officially endorsed as the country's new prime minister, Mr Woranate said he hoped the new government would make it easy to travel in order to boost tourism.
This should include a visa fee waiver for Chinese travellers to attract more tourists from the country who are currently reluctant to spend while the economy is sluggish, he said.
Mr Woranate said this initiative by the government would help both the tourism and aviation sectors.
He said the government should become proactive in seeking more cooperation with India, encouraging the country to increase the quota on seat capacity between the countries' major cities.
Meanwhile, as airlines now have to pay the full rate of excise tax, Mr Woranate said he hoped the government could offer a gradual increase to help airlines adjust to a surge in operational costs.