Thai AirAsia eyeing new growth markets

Thai AirAsia is asking the government to unlock travel with the sluggish Chinese market by launching a stimulus campaign.

- MOLPASORN SHOWOONG

In the meantime, the airline is pivoting to other markets for growth, including an expansion of its domestic operations and leveraging its Asean air routes.

Santisuk Klongchaiya, chief executive of Thai AirAsia, said the Chinese market has grown at a slower rate than expected due to weakening confidence regarding travel safety in Thailand and a glut of airlines seats.

In 2019, China accounted for more than 30% of Thai AirAsia's total international route capacity, but the country's contribution to total international route capacity has since fallen to just 17%.

He said while the Tourism Authority of Thailand is targeting 8 million Chinese arrivals this year, during the first quarter Thailand is expected to welcome only 1.5 million Chinese tourists, suggesting the total number of Chinese arrivals for this year will be closer to 6 million.