Thai AirAsia looks to consolidation
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Bangkok Post reported him as saying that the airline also did not have the aircraft capacity to fly new routes, possibly to Bali, Dhaka, Kunming and India.
Last month, it dropped Xiamen in southeastern China - started three years ago – from its network due to higher operating costs, a limited load factor and a price war with Thai Airways International. Its Bangkok to Guangzhou sector has yet to take off.
”With oil prices skyrocketing, the new routes seem to offer a better economic proposition,” he was quoted saying, adding that jet fuel cost more in China than in other areas where the airline operated.
The only China point it now flies to is Shenzhen which it launched last July.
Tassapon was quoted saying that the LCC was focusing on more profitable routes such as Bangkok-Jakarta and Bangkok-Ho Chi Minh City. The Jakarta and Ho Chi Minh frequencies would be doubled to four flights a week later this month.
The carrier is now advancing the retirement of its Boeing B737-300 fleet and replacing them with brand-new Airbus A320 jetliners.
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