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Thai AirAsia considers merger
Thai AirAsia Co Ltd is mulling a possible merger with another low cost carrier, its executive chairman Tassapon Bijleveld said.
The Bangkok Post says informal talks have already taken place with other airlines.
Tassapon believes consolidation may be the only way forward due to high fixed costs and market competition pushing down prices.
If there is no discernable recovery by July, the airline would start downsizing and laying off employees next year.
"TAA is burning about THB1.2 billion per month during the lockdown when the 60-aircraft fleet of TAA is left stranded at airports," Tassapon said.
Tassapon says the current seven LCCs in Thailand is too many and three is sufficient for the market while maintaining customer choice and competition.
"A merger is possible if aviation in Thailand resumes with the same old fiery price wars as now we have more limited revenue sources."
The airline reported a first quarter net loss of THB671 million.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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