BANGKOK: Low-cost airline operator Thai AirAsia X aims to increase its registered capital by 1 billion baht (US$0.030 billion) as part of its plan to exit rehabilitation later this year.
The airline entered a court-approved rehabilitation process on August 31, 2023, which has now been ongoing for one year and seven months.
Tassapon Bijleveld, executive chairman of Asia Aviation and CEO of Thai AirAsia X, confirmed that the airline has already repaid 60 - 70 per cent of its 4.27 billion baht (US$0.13 billion) debt without default.
To complete the rehabilitation process by the end of this year, the airline plans to raise its registered capital by 1 billion (US$0.15 billion) baht. However, Tassapon noted that the company would monitor the situation during the first and second quarters before proceeding with the capital increase.
He expressed confidence in attracting new investors, pointing out that the company had previously offered shares worth a total of 5 billion baht to new partners following the Covid-19 pandemic.
Tassapon added that Thai AirAsia X has been profitable since last year, posting a net profit of 400 million (US$12 million) baht. However, he acknowledged that the profit margin remains relatively low, due in part to the high maintenance costs associated with its fleet of Airbus A330 aircraft, which must be serviced in Indonesia and the Philippines.
Currently, Thai AirAsia X operates ten aircraft, although one is scheduled to be returned this year, leaving the fleet at nine. Tassapon emphasised that these aircraft must be deployed on high-demand routes. The Bangkok–Sydney service was discontinued due to the difficulty in obtaining visas.
As a result, the airline is focusing on routes with higher demand, particularly Japan. Tassapon revealed that the airline is preparing to launch a new Japanese destination, as well as one or two new routes in the Middle East. It also plans to begin flights to Kazakhstan in the near future.
To support these operations, the airline intends to procure two to three additional Airbus A330 aircraft. However, Tassapon noted that aircraft procurement has become more challenging in the aftermath of the Covid-19 pandemic.
“The airline is focusing on aircraft management aligned with travel demand,” he said. “We are confident that this year’s performance will continue to be positive.”
In addition, Tassapon revealed that Asia Aviation is exploring opportunities to invest in an aircraft maintenance centre at Suvarnabhumi Airport, a project the Civil Aviation Authority of Thailand (CAAT) is keen to promote.
“We believe that, in the post-Covid-19 era, aircraft maintenance centres have become increasingly important,” he said.
He also mentioned that the company is currently studying a potential merger between Thai AirAsia and Thai AirAsia X, noting that several factors must be considered, including business licences, airline slots and financial matters. - The Nation/ANN
