Thai AirAsia, Thai Post link up for speedy EMS
Thai AirAsia, the biggest low-cost carrier, has joined hands with Thailand Post to introduce an EMS [Express Mail Service] super speed service as part of its plan to strengthen its financial performance.
Currently, ticket sales contribute 84 per cent of revenue, while non-ticket sales make up 16 per cent of total. The latest service launch will help add one percentage point to the non-ticket sales.
Currently, the firm earns more than Bt200 million per year from its cargo service.
Tassapon Bijleveld, Thai AirAsia’s CEO, said the EMS service is in the early start-up stages in three major cities – Chiang Mai, Phuket, and Hat Yai.
When in full operation, customers using the service at the post office before 10.30am can have their parcel delivered to the receiver on the same day.
However, in Bangkok its delivery service is currently limited to Muang district only. Service coverage will be expanded to other parts of the country next year. The company believes the EMS service will have more opportunity for growth.
In the second half of this year, Tassapon said the aviation industry competition would be more fierce with the entry of new carriers. However, they need time to adjust themselves to play the rising market here.
Overall AirAsia is still strong in the market. Even as economic growth is being trimmed down, he believed AirAsia’s outlook would still be optimistic. Clearly, people will spend money more carefully, especially flying with airlines. They will turn their eyes to low-cost carriers in order to save money and AirAsia will be in their range of options, Tassapon said.
For 2013, the market prospect remains good, driven by the tourism boom, especially an ongoing inflow of Chinese tourists. Therefore, the airline will maintain its previous projection of carrying 10 million passengers in total and its load factor at 82 per cent.
