Good news for Thai AirAsia X as the Central Bankruptcy Court gives the airline the thumbs up on its revised business rehabilitation plan. This decision, made on July 14, 2023, sets the stage for the airline to get back on its feet and aim for continual growth. The airline is now all set to expand its fleet, explore new routes, and manage its capital more efficiently.
Back in Business and Ready for Expansion
Mr. Tassapon Bijleveld, the Chief Executive Officer of Thai AirAsia X, expressed gratitude for the support from the company’s creditors and the Central Bankruptcy Court. He emphasized that this approval is a significant step forward. It not only boosts confidence in the airline’s operations but also shows that Thai AirAsia X is on the right track for its creditors and stakeholders.
Post-pandemic, the airline has stabilized its operations and continues to be a leading low-fare medium-haul carrier. It primarily serves core markets like Japan and South Korea. Mr. Tassapon also mentioned that they aim to return to near pre-pandemic capacity by the end of 2024. The airline is also speeding up its expansion into the Australian and Chinese markets and is eyeing growth opportunities in India and the Middle East.
The Roadmap for Growth
Thai AirAsia X has laid out some key strategies to ensure its growth. One of the main focuses is on fleet expansion. Currently, the airline operates six aircraft. According to the rehabilitation plan, they will add three to five more aircraft by 2024 and another eight by 2028. This will bring the total fleet size to 17. This expansion will allow the airline to operate a robust network of routes and destinations from Suvarnabhumi Airport. It will also create opportunities to grow the carrier’s cargo business.
Another strategy involves reducing operational costs, mainly through negotiating aircraft leasing and maintenance agreements.
Taking Care of Debts and Passengers
Thai AirAsia X is also committed to managing its debts effectively. The airline will start repaying its creditors and will also begin refunding passengers affected by flight cancellations during the COVID-19 pandemic. This repayment and refund process will happen in a sequential manner, aligned with the company’s business turnaround plan.
Thai AirAsia X is back in the game with a court-approved business rehabilitation plan. The airline is not just looking to recover; it’s planning for significant growth. From fleet expansion to entering new markets, Thai AirAsia X is setting the stage for a strong comeback.
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