The Journey to Recovery
Thai AirAsia X, a significant player in the airline industry, initiated a court-approved rehabilitation process on August 31, 2023. As the airline approaches a total of one year and seven months in this rehabilitation journey, CEO Tassapon Bijleveld expresses optimism about its recovery.
Debt Repayment Progress
According to Tassapon, the airline has successfully repaid 60–70% of its 4.27 billion baht debt. This progress has been made without any defaults, showcasing the company’s commitment to financial recovery.
Plans for Capital Increase
To fully complete the rehabilitation process by the end of 2024, Thai AirAsia X plans to raise its registered capital by 1 billion baht. However, the company will monitor market conditions during the first two quarters of the year before moving forward with this capital raise.
Attracting New Investors
Tassapon is confident that the airline will attract new investors, highlighting that the company had previously offered shares worth a total of 5 billion baht to new partners during the recovery from the Covid-19 pandemic.
Continued Profitability
Despite challenges, Thai AirAsia X has shown profitability, reporting a net profit of 400 million baht since last year. Tassapon notes, however, that the profit margin is limited due to high maintenance costs associated with its Airbus A330 fleet, requiring service in Indonesia and the Philippines.
Focus on High-Demand Routes
The airline currently operates 10 aircraft, with plans to return one, leaving a fleet of nine. The focus will be on high-demand routes, particularly in Japan, where the airline plans to launch a new destination. Additionally, new routes to the Middle East and flights to Kazakhstan are being considered.
Future Aircraft Procurement
To support its operations, Thai AirAsia X intends to procure two to three additional Airbus A330 aircraft. However, aircraft procurement has become increasingly challenging post-Covid-19, according to Tassapon.
Strengthening Aircraft Management
Tassapon emphasized the airline’s focus on aligning aircraft management with travel demand, expressing confidence that the airline will continue to perform positively this year.
Investment in Maintenance Facilities
In a strategic move, Asia Aviation is exploring the establishment of an aircraft maintenance center at Suvarnabhumi Airport, a project supported by the Civil Aviation Authority of Thailand (CAAT). “In the post-Covid-19 era, aircraft maintenance centers have become increasingly important,” he added.
Considering a Merger
Asia Aviation is also studying a potential merger between Thai AirAsia and Thai AirAsia X, considering various factors such as business licenses, airline slots, and financial matters.
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