Thai AirAsia sees boom in China
5m passengers to Kingdom seen in next five years
Thai AirAsia, the country’s biggest low-cost airline, projects carrying 5 million Chinese passengers to Thailand over the next five years, thanks to the box-office hit “Lost in Thailand” and China’s growing economic prosperity.
In the first quarter, Thai AirAsia carried 470,000 Chinese passengers, an increase of 140 per cent over the same period last year. For the whole of 2012, it served more than 1 million Chinese.
According to the Department of Tourism, more than 850,000 Chinese came to Thailand via air transport in the first quarter of this year, an increase of 97 per cent year on year. That means AirAsia carried more than half of the total during the period.
Tassapon Bijleveld, chief executive officer of Thai AirAsia, said that although the Chinese economy had faced a lower momentum, the flow of tourists from that country continued. He expects the total number of Chinese tourists to Thailand over the next five years will increase to 10 million, half of them flown in by his airline.
According to the Tourism Authority of Thailand, the number of Chinese arrivals was 2.7 million last year, and it expects the number this year to surpass 3 million.
Tassapon said many Chinese tourists, especially younger people, had enough purchasing power to travel to two or three cities in Thailand. Most of them have chosen Chiang Mai, where “Lost in Thailand” was filmed, for their first destination before travelling to other places such as Phuket, Krabi and Trang. They also enjoy shopping sprees, despite flying with a low-cost carrier.
Currently, Thai AirAsia flies to seven destinations in China, with direct flights from Don Mueang Airport to Hong Kong, Macau, Guangzhou, Shenzhen, Chongqing, Wuhan and Xian. There are also direct flights between Chiang Mai and Macau and between Phuket and Hong Kong.
The firm plans to add two China destinations in the middle of the year and also look for ways to increase its flight frequencies to serve rising demand.
Currently, the airline operates 160 flights per day. Domestic service is its core market with 78 per cent. In the first quarter of this year, its business performance is expected to be upbeat. During the period, its cabin factor was 87 per cent. It carried 2.5 million passengers, up from 2.1 million in the first quarter of 2012.
Despite the outbreak of bird flu in China, there is no sign that the flow of tourists from there will subside. Advance bookings for the next three months remain as active as usual, with no sign of a drop.
While the baht has strengthened, the company has enjoyed a slight benefit from paying its expenses in US dollars. Tassapon is confident that the airline will meet its revenue target this year of 20-per-cent growth. Passenger numbers are expected to pass 10 million, from 8.3 million in 2012. Its average cabin factor is expected at 82 per cent.
