Thai AirAsia is focusing on opening new routes to India and within Southeast Asia in the second half to offset unrecovered flights to China, which are still hampered by the sluggish economy and higher competition from domestic travel.
Tansita Akrarittipirom, head of commercial at Thai AirAsia, said the share of Chinese passengers had plunged to 17%, from 27% before the coronavirus pandemic, while the share of Indian passengers is expected to increase to 10% by the end of the year.
The airline is also strengthening its Southeast Asian routes, as well as increasing capacity to other Asian routes, such as utilising the fifth freedom right to travel to Tokyo via Taiwan, in order to balance its portfolio.
Thai AirAsia launched three new routes this month, which will begin operating in October, comprising Bangkok-Hyderabad, Bangkok-Phú QuÕc and Phuket-Siem Reap.
It will launch another three routes next month to serve the high season towards the end of this year, consisting of Bangkok-Kathmandu, and from Phuket to two Indian cities -- Kolkata and Chennai.
Ms Tansita said these moves followed the additional 7,000 seats allocated by the Civil Aviation Authority of Thailand (CAAT) to Thai carriers, in which Thai AirAsia gained 40% of the total quota.
She said Indian passengers typically dominate 80-90% of flights bound for India, while Thai outbound tourists are gradually increasing, thanks to the visa-fee waiver programme for Thai nationals currently applying for an Indian Visa.
Tansita Akrarittipirom, head of commercial at Thai AirAsia. (Photo supplied)
Domestic routes that benefit from the growing Indian market are beach destinations such as Phuket, Krabi, and Pattaya, where tourists travel from Bangkok.
She said CAAT is negotiating with the Indian government for an extra 7,000-seat quota in the future. With additional allotments, Thai AirAsia hopes to open flights to major cities such as Delhi and Mumbai.
During the first half, the airline's international flight capacity was at 82% of the pre-pandemic level.
However, the seat capacity on Indian routes has already recovered to 116%, while Southeast Asia's seat capacity is at 88%, leaving only China to recover to just 55%.
Ms Tansita said that despite growing Indian demand, it would take more than five years to edge the Chinese market in its portfolio, due to limited flight quotas and less purchasing power.
By the end of 2024, Chinese passengers are expected to account for 20% of the total international passengers of around 8-9 million, while Southeast Asian and Indian passengers have 50% and 10%, respectively.
Two more Chinese routes from Chiang Mai and Bangkok may commence in the high season.
This year, the airline aims to have 21-22 million passengers, almost matching the 22.1 million who booked in 2019.
Of the total, 8-9 million would be international thanks to the Thai government's visa-free schemes.
With Thai AirAsia X relocating its operations to Don Mueang Airport, this would also help strengthen both airline networks, particularly transit passengers.