Thai AirAsia to focus on boosting non-air-ticket income

[webfact]

Thai AirAsia to focus on boosting non-air-ticket income

By THE NATION

 

 

Thai AirAsia aims to push non-air-ticket income to a quarter of its total earnings, Tassapon Bijleveld, executive chairman of Asia Aviation Plc (AAV) and Thai AirAsia Co Ltd (TAA), said.

 

Thai AirAsia is planning to generate additional income to keep the airline business afloat during the Covid-19 crisis, Tassapon said.

 

“Currently our food delivery business generates around Bt150,000 per month, while our latest “Unlimited Pass” campaign has generated around Bt100 million,” he said.

 

“We are expanding into the non-air-ticket market by promoting Thai AirAsia to be a travel digital platform that sells hotel reservation, concert tickets, European train tickets as well as car rental services to travellers worldwide.

 

“In the future, we aim to become the community digital platform that sells agricultural produce from farms as well as other local products directly to customers with 48 hours delivery,” he added.

 

Tassapon added that currently non-air-ticket income is responsible for 18 per cent of the airline’s total income. “We are pushing to make non-air-ticket 25 per cent of our total income,” he said. “Currently the profit ratio of non-air-ticket income is at 50-80 per cent, while that of the air ticket is only 2-5 per cent. In the future we might sell air tickets at a loss only to expand customer base and then focus on promoting other services that have higher ratio of profit to revenue.”

 

Thai AirAsia predicted that the airline industry will take until mid-2020 to fully recover from the impact of Covid-19.

 

“It had been earlier estimated that this year Thailand would have 8 million foreign tourists, while so far we have only seen around 6.2 million,” added Tassapon. “With the current outbreak situation, we can only rely on the travel bubble policy, which is estimated to bring only around 500,000 foreign visitors until the year-end, meaning the industry will miss its target by a lot.”

 

Source: https://www.nationthailand.com/business/30392731

 

-- © Copyright The Nation Thailand 2020-08-11

 

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[Laughing Gravy]

While I am all for creativity and adapting to the situation, the food delivery service that generates 150k a month will hardly support the numbers of employees. I believe it is going to take a lot more than is being suggested here.

 

Maybe they can give taxi rides up and down the runways to generate some revenue. ????

[rasmus5150]

1 hour ago, webfact said:

Thai AirAsia predicted that the airline industry will take until mid-2020 to fully recover from the impact of Covid-19.

That's amazingly fast considering  ????

[torturedsole]

I'm very fond of Uncle Chin's chicken basil rice.  Not sure it'll save the company though.  

[RichardColeman]

Up next , Thai Airways meals available in 7/11

[Stargeezr]

Well mid 2020 has come and gone so Air Asia  your hopes are for not.

Mid 2025 for recovery if you are still a business sounds more like the year you can hope

for.

Geezer

[mtls2005]

Can you remove a kidney on a 45 minute flight?

 

 

[steven100]

I won't be buying anything from Air Asia for the foreseeable future .... 

If a company takes 6 months to process a refund they are not very credible imo.

[steven100]

1 minute ago, mtls2005 said:

Can you remove a kidney on a 45 minute flight?

 

 

medical tourism

[DaLa]

Mile high club rides with massage and a happy landing

[quake]

Well the female air crew can pop always round my

place and do a bit of dusting,  with the uniform on. 

 

[fondue zoo]

non-air services ?

 

[pixelaoffy]

hilarious  going to"hell in a handcart" mr Fernandez , Thailand will be last country on planet to open borders for tourists, Scared bunch of losers

[madmitch]

6 hours ago, webfact said:

we can only rely on the travel bubble policy,

Don't they read the news? It's been dropped.

 

But there again, with the daily announcements it could quite easily end up back on the agenda next week.

[bkk6060]

They have some very cute flight attendants.

How about starting an Air Asia dating site.  Bet it could generate some extra income.

 

Also, 100 mil. on that unlimited flight pass?

Geez, all I have heard is certain flights are excluded, limited seats, flights changed or canceled.

Any positive reviews on this?

[Bender Rodriguez]

they should get into the porc & chicken business... CP does the reverse and with success

[steven100]

9 minutes ago, bkk6060 said:

Also, 100 mil. on that unlimited flight pass?

Geez, all I have heard is certain flights are excluded, limited seats, flights changed or canceled.

Any positive reviews on this?

i heard the same .......   no thai's were risking buying a ticket. Flights cancelled as they couldn't get sufficient numbers.  I find the 100 mil hard to believe.  imo

[hotchilli]

7 hours ago, webfact said:

Thai AirAsia aims to push non-air-ticket income to a quarter of its total earnings, Tassapon Bijleveld, executive chairman of Asia Aviation Plc (AAV) and Thai AirAsia Co Ltd (TAA), said.

what's 25% of sod-all ?

[GreasyFingers]

I wonder how they make any money at all. I keep getting promotional emails, maybe Air Asia and not Thai, but when I click on the "book now" link there is no web site. Same when doing a Google search.

So can anyone else link to their website?

[robertson468]

I would have thought the obvious alternative would have been to go into air freight.  They have the planes, they have the pilots, it can't take that much to convert some of the present fleet imo?

[Hi Tea]

14 hours ago, rasmus5150 said:

15 hours ago, webfact said:

Thai AirAsia predicted that the airline industry will take until mid-2020 to fully recover from the impact of Covid-19.

That's amazingly fast considering 

"Thai AirAsia predicted that the airline industry will take until mid-2020 to fully recover"

 

That means that they had predicted, past tense.  Now they know that isn't happening they're expanding into the non-air-ticket business, present tense.

[mikebell]

On 8/11/2020 at 2:42 AM, webfact said:

“Currently the profit ratio of non-air-ticket income is at 50-80 per cent, while that of the air ticket is only 2-5 per cent.

So the mark-up on hotel reservation, concert tickets, European train tickets as well as car rental services is 50 - 80%!  I'll be going elsewhere for these.