Thai AirAsia denies reports of huge losses
KUALA LUMPUR – AirAsia boss Tony Fernandes has poured cold water on news agency reports that Thai AirAsia has suffered one billion baht in losses
Fernandes said that Tassapon Bijleveld – Thai AirAsia’s CEO was misquoted.
“Thai AirAsia is expected to make additional investments amounting to one billion baht over the next 10 years in line with its current plans to replace the existing ageing fleet of B737-300s with new Airbus A320 aircraft,” said Fernandes, in a statement.
“These include expanded staffing, training/conversion costs, purchase of supporting equipment, acquisition of aircraft and engine spares and enhancement of maintenance capabilities to cater for a much bigger and newer fleet of aircraft.
“In addition, there will be once-off redelivery charges expected to be incurred as the management has decided to accelerate the return of the leased Boeing 737-300 aircraft back to the various lessors.
“Thai AirAsia’s financial results for 2007 have not been finalised as it is currently being audited. The financial results will be announced together with AirAsia Berhad’s financial result which is targeted to be released on 29 February 2008.
“Although Thai AirAsia is expected to slip into a loss position for the financial year 2007, Thai AirAsia did not lose one billion baht in 2007 as reported,” said Fernandes.
“A loss is expected mainly due to intense competition in Thailand through rampant undercutting combined with adverse effects of higher fuel cost, and once-off charge attributable to a change in accounting policy in relation to accounting for maintenance reserves to be in line with industry practice which has already been adopted earlier by AirAsia Berhad.”
Fernandes added, We are very confident with the underlying business operations in Thailand. The company fundamentals are solid with a comprehensive route network, established distribution system and a strong brand.
“Our fleet rejuvenation exercise with the new Airbus A320 aircraft will reduce operational cost substantially while enhancing operational reliability and customer service.
“The strategy undertaken by the management will increase the value proposition of Thai AirAsia to our customers and keeps us ahead against the competitors.”
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive