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Thai AirAsia Plans Increased Operations at Suvarnabhumi, Cautious on China Market

Thai AirAsia Expands Domestic Operations at Suvarnabhumi Amid Challenges in Chinese Market
Thai AirAsia is increasing its domestic flight operations from Bangkok’s Suvarnabhumi Airport to approximately 20%, reflecting a strategic shift toward strengthening its presence in the resilient domestic market and pursuing selective international growth. This adjustment comes in response to ongoing uncertainties in the international travel sector, particularly relating to the Chinese market. The airline’s latest half-year report highlights Thailand’s domestic market as a critical area for expansion, despite intensified competition that has exerted downward pressure on fares. Domestic pricing remains relatively stable, supported in part by anticipated government subsidies scheduled for the third quarter of 2025, including initiatives such as the "Travel Thai Half-Half" campaign designed to stimulate local tourism.
Currently, Suvarnabhumi accounts for about 19.2% of Thai AirAsia’s domestic flight frequencies, ranking as the airline’s third-largest hub after Bangkok Don Mueang Airport, which handles 72.7%, and Chiang Mai at 24.8%, according to ch-aviation data. All international flights from Bangkok continue to operate exclusively out of Don Mueang, with Suvarnabhumi dedicated solely to domestic routes.
Cautious Outlook on China and Strategic Market Diversification
Thai AirAsia’s increased focus on domestic operations coincides with a cautious stance on the Chinese market, historically Thailand’s largest source of inbound tourists. The airline cites multiple factors dampening travel sentiment from China, including safety concerns, regional border tensions with Cambodia, and broader shifts in global economic policies. These challenges, compounded by domestic economic difficulties and natural disasters, have resulted in a sharp decline in Chinese arrivals, which fell by more than one-third in the first seven months of 2025 compared to 2019. For the first time in over a decade, annual Chinese tourist numbers are projected to drop below five million, less than half the record 11 million visitors recorded in 2019.
Thai AirAsia emphasizes that a meaningful recovery in Chinese tourism is unlikely without structural reforms, such as enhanced government support or improved perceptions of traveler safety. The airline acknowledges that the government’s 2025 target of 39 million total arrivals is now unattainable, with current forecasts adjusted downward to between 34 and 35 million.
In response to these challenges, Thai AirAsia is intensifying its focus on high-growth markets such as India and Vietnam, anticipating capacity growth of 15 to 20 percent year-on-year in the second half of 2025. The carrier is also expanding its portfolio of profitable fifth-freedom and seasonal routes, including the Don Mueang–Gaya service, and currently operates five fifth-freedom routes connecting Taiwan and Hong Kong with Japan. These routes have demonstrated greater profitability compared to most direct international services from Thailand.
The airline’s strategic pivot occurs amid rising competition from both domestic rivals and international carriers, including Greater Bay Airlines, which recently secured approval to operate flights between Hong Kong and the United States. This evolving competitive landscape underscores the necessity for Thai AirAsia to adapt swiftly to changing traveler preferences and diversify its tourism offerings.
Thai AirAsia currently operates a fleet of 62 aircraft, comprising forty-four A320-200s, eleven A320-200Ns, and seven A321-200NXs. The airline plans to add two additional A321-200NX aircraft by the end of the year, a reduction from its earlier plan to introduce four new units.

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