Thai AirAsia counts losses
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Thai AirAsia (TAA) has announced it will see significant losses this year, the Bangkok Post has reported. The airline’s Chief Executive Tassapon Bijleveld admitted that the airline’s performance has been severely affected by fuel costs, which account for approximately 50% of TAA’s total operating costs. ”This year’s general situation seems worse than last year, due partly to the political mess,” Bijleveld said. ”Our financial performance is almost solely tied to jet fuel prices.” TAA has admitted that in 2007 performance was also poor, with the airline declaring ‘substantial’ losses. However passenger levels remain buoyant; the low cost carrier expects to carry 4.6 million passengers this year, up from 4.2 million in 2007, partly as it has resisted pressures to raise fuel surcharges, which currently stand at between THB550 (US$16.59) and THB1,000 (US$30.16). Bijleveld said TAA wanted to avoid backlash from consumers, which could lead to more empty seats. TAA’s order of 40 new Airbus A320s also remains on course as the airline continues to upgrade its fleet to more energy efficient models
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