Thai AirAsia X (TAAX) is all set to get its expansion plans off the ground now that safety issues related to Thai regulators have been resolved.
TAAX chief Nadda Buranasiri says the carrier is set for a 'modest' expansion after the removal of Thailand's red flag for safety issues.
The medium- and long-haul low-cost carrier yesterday firmed up its growth plan, which will see the addition of four aircraft and the introduction of new routes in north Asia next year.
The plan, revealed by chief executive Nadda Buranasiri, came with a marked boost in the company's 2018 revenue projection, passenger tally and the relaunch of an advertisement campaign.
The resumption of TAAX's short-lived regular service to Sapporo, operated briefly in mid-2015, was confirmed by Mr Nadda, underscoring the airlines renewed route expansion, which will primarily cover Japan, South Korea and China.
TAAX is working to offer a daily flight from its Bangkok Don Mueang airport base to Sapporo's Chitose airport in the first quarter of next year.
The airline is set to receive the first two of four Airbus A330-300 wide-body jets in the first quarter of next year, providing the extra capacity needed to relaunch its Sapporo service.
TAAX plans to add the other two A330-300s to its fleet, now numbering six aircraft of the same type, in the third quarter of 2018.
Sapporo is the only new Japanese port confirmed by TAAX, although Mr Nadda noted two other Japanese cities, Fukuoka and Kumamoto, as well as Okinawa as possible destinations next year.
TAAX operates non-stop services from Bangkok to Narita and Osaka, each with two flights daily.
A second South Korean port is on TAAX's radar screen, which would come in addition to its service to Incheon, offered at three flights per day.
A host of secondary Chinese cities such as Dalian, Tianjin and Qingdao are also on TAAX's radar, which would come in addition to its existing daily service to Shanghai -- the carrier's sole Chinese port of call.
The LCC has studied expanding to Eastern Europe and Australia, he said, adding those plans are still possible, without providing further details.
The expansion plan is targeted to propel TAAX's revenue next year to 13 billion baht, up from 9 billion projected for this year and 7.9 billion in 2016.
TAAX expects to carry 2.2 million passengers, up from 1.6 million projected this year, with an average load factor of 86%, compared with 89% in 2017.
Mr Nadda said TAAX's growth plan for 2018 is "moderate", discounting some suggestions that the removal of the International Civil Aviation Organization's "red flag" status on Thailand lat month would trigger a race for international flight expansion among Thai-registered airlines.
The red flag, which had been in place since June 2015, restricted international flight expansion by Thai-registered carriers.
Mr Nadda said the competition will be more intense next year, but the market has the ability to absorb greater airline capacity.