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Pattaya Daily News

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27 May 2010 :: 13:05:46 pm 22533

AirAsia Announce Free Flights & Thai Bourse Expansion

The Thai arm of the Malaysian owned AirAsia Group is planning an ambitious move to list the company on the Thai bourse during the first quarter of 2011. Despite the current market downturn in travel to and around Thailand, the budget carrier still aims to go ahead with their listing plan.
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Thailand, the 26th of May 2010 [Pattaya Daily News]: Thai AirAsia, 49% owned by the AirAsia Group, plans to list the budget carrier on the Thai bourse as early as next year as part of a fundraising plan to strengthen its financial position in the competitive budget flights market. Thai AirAsia Chief Executive Officer Tassapon Bijleveld stated; “We are no longer looking for other financial options like bond issuance or anything, as we’re now gearing up toward the listing plan.”

Despite the negative fallout from the past 2 month long protests in the Thai capital of Bangkok, Thai AirAsia is still planning to go ahead with the listing also stating that further expansion in the region is also being considered. Thai AirAsia executives expect to post more than a Bt1 billion profit for 2010 on the back of a robust first-quarter, prior to the protracted anti-government protests, which saw quarterly earnings equate to several hundred million baht.

Political unrest and chaos on the streets of Bangkok and in several North and North-eastern provinces have not dismayed Thai AirAsia in relation to achieving their expected revenue and passenger targets for the year. CEO Tassapon Bijleveld revealed, “It’s worth noting that the unrest occurs in the low season, so the effect on our traffic isn’t that severe. Imagine the same incident happened in the first or the fourth quarter, during the high season, we would be in a much more difficult situation.”

The Thai budget airline’s passenger load factor in May has fallen to around 60% to 65% from around 78% in April and 82% in the first quarter. The Thai firm expects to fully achieve their revenue target of Bt12 billion along with the stipulated passenger target of 6.2 million.

Encouragingly, AirAsia today announced the commencement of their, “It’s OK, Bangkok! AirAsia’s Behind You!” promotional campaign, set to encourage tourism growth to the capital and other regions of Thailand following the conclusion of several months of anti-government political protests in the nation. The promotional offer is giving away 10,000 free seats on AirAsia services to the Kingdom in an agreement with the Tourism Authority of Thailand (TAT), who will subsidise the tickets and the promotional campaign.

The 10,000 free tickets will be ‘up for grabs’ on the airlines website as of the 28th of May 2010 and are available to non-Thai’s only, for travel to Thailand between June and August 2010.

Reporter : John Weston   Photo : Internet   Category : Tourism News

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