Thai Vietjet, a budget airline based in Thailand, is aiming for a significant passenger increase in 2024, targeting nearly eight million passengers. The airline is implementing a comprehensive strategy to achieve this goal, focusing on fleet expansion, increased flight frequencies, and the introduction of new routes.
To accommodate the anticipated surge in demand, Thai Vietjet is actively optimizing aircraft utilization and increasing the frequency of flights on its existing routes. The airline plans to further bolster its fleet with the introduction of new Boeing 737 Max jets in 2025, a move that will enhance its operational efficiency and expand its route offerings.
Woranate Laprabang, CEO of Thai Vietjet, highlighted the significant role of the visa-free scheme in driving demand for international routes, particularly to China. The airline currently operates flights to over 10 destinations in China, a significant portion of its total capacity. The airline’s success in the Chinese market is evident in its impressive load factors, reaching 90% in the first quarter of 2024 and maintaining an 80% load factor even during the off-peak season.
Despite a slowdown in the Chinese economy, Woranate emphasizes the continued robust demand from high-spending Chinese tourists. To meet the anticipated increase in demand, especially during the fourth quarter, Thai Vietjet plans to lease two additional Airbus A320 aircraft through a short-term contract.
Pinyot Pibulsonggram, the airline’s head of commercial, explained that the new aircraft would primarily be used to increase flight frequencies on existing routes, particularly to China and Vietnam. The airline also intends to launch a new route to Mumbai, India, further expanding its reach.
Looking ahead to next year, Thai Vietjet anticipates the arrival of nine to 12 new Boeing 737 Max jets, a move that aligns with the airline’s five-year strategy to transition from Airbus to Boeing aircraft. Pinyot expressed confidence in Boeing’s capabilities despite recent challenges faced by the company.
The introduction of the new Boeing jets will enable Thai Vietjet to operate longer routes, opening up new destinations in China, India, and Japan. The airline’s commitment to environmental sustainability is reflected in its recent memorandum of understanding with the Chaipattana Foundation, a collaboration aimed at supporting environmental preservation and sustainability initiatives under the Fly Green Fund Initiative.
Thai Vietjet plans to start offering locally-produced goods backed by the foundation in the fourth quarter, contributing to the local economy while promoting sustainable practices. The airline has ambitious goals for sustainable aviation fuel, aiming to have it constitute 1% of its total fuel consumption by 2026 and increase that percentage to 5% by 2030. This initiative is projected to reduce carbon emissions by approximately 153,000 tonnes over a five-year period.
Thai Vietjet’s ambitious growth plans, coupled with its commitment to sustainability, position the airline for continued success in the competitive aviation market.
