AirAsia flights to China face cuts amid sluggish demand

AirAsia is considering reducing flights from Thailand to China by at least 15% to cope with the Chinese market slowdown, while it encourages the Thai government to maximise tax refund privileges for tourists to urgently stimulate spending.

- NARUMON KASEMSUK

Tassapon Bijleveld, executive chairman of Asia Aviation, the majority shareholder of Thai AirAsia, said that even though more Thai tourists are flocking to China after the permanent visa exemption started last year, the outbound flows cannot compensate for the absence of Chinese passengers.

He said Thai AirAsia and Thai AirAsia X are studying the Chinese market, which has already entered its low season. The airlines may opt to reduce the number of flights by 15%, shifting to other routes with higher potential such as India, said Mr Tassapon.