AAV affirms no impact from ICAO's latest move

 

At a press conference, Tassapon Bijleveld, CEO of Thai AirAsia and Asia Aviation, said: “We will definitely be introducing new routes.  In response to ICAO’s action in red-flagging Thailand, we affirm that Thai AirAsia will not be affected in any way and that we are ready to continue serving flights as usual."

The press conference followed a dissatisfactory development at Thai AirAsia X. The airline  yesterday announced that its Bangkok-Sapporo route would be suspended from August 1 onwards, as Japan's rule relaxation will expire.

AAV share price dropped by 0.92 per cent in the morning, to Bt4.30. 

Thai AirAsia X is a joint venture of Malaysia-based AirAsia and Tassapon as well as Julpas Krueospon who hold the combined 51 per cent stake. It operates long-haul flights to support Thai AirAsia operations.

On June 18, ICAO made a public announcement of a red flag on Thailand through its website following an audit of the Department of Civil Aviation, Thailand that turned up a Significant Safety Concern (SSC). 

Tassapon noted that the low-cost airline witnessed satisfactory returns from the first quarter of this year until now as the tourism industry bounced back from last year.  

At the end of the year, the airline plans to receive 2 additional aircraft to bring its fleet to 45 this year. 

Tassapon also voiced confidence in the airline’s ability to ensure the utmost safety standards while stating that many countries have recently increased safety precautions including ramp inspections, station audits and base audits, all of which have shown AirAsia to be within acceptable parameters with no issues for concern.

Tassapon assured to AAV investors that the company does not hold shares in Thai AirAsia X, thus AAV will not be affected by the situation in any way.