Southeast Asian Airlines' Flight to Recovery

Southeast Asian Airlines' Flight to Recovery
Boeing 777F | Unsplash

Recovering from pandemic-induced losses, Southeast Asian airlines are securing substantial aircraft purchase agreements to meet the rising demand as tourists return. Indonesia's national carrier, Garuda, plans to lease eight aircraft this year, increasing its fleet to 80 and boosting the frequency of flights by year-end.

Garuda Indonesia’s Finance Director, Pahala Mansury, stated that the monthly rental cost per aircraft ranges from US$200,000 to US$500,000.

Thai Airways has finalized a deal with Boeing and other suppliers to acquire a total of 45 aircraft, as reported by Nikkei Asia.

According to CEO Chai Eamsiri, Thai Airways aims to expand its fleet from 70 aircraft at the end of 2023 to 96 by 2033. Additionally, Thailand's government has extended its tourist visa exemption to 93 countries, up from 57, which is expected to bolster the aviation industry's recovery post-pandemic.

Other Southeast Asian airlines are similarly investing in capacity growth. Philippine Airlines is tripling its investment to US$ 450 million this year for fleet upgrades and maintenance. The airline also intends to order 22 new aircraft to serve routes to North America and other destinations.

As air travel demand rebounds, Southeast Asian airlines are striving to achieve growth once more.

Also read:  Precision in the Skies: Standout Airlines Most Punctual in Southeast Asia

Singapore was the first in Southeast Asia to partially lift its foreign travel ban in September 2021. To reclaim market share from European and American competitors, which reopened earlier, Singapore Airlines rapidly increased flights, achieving a net profit of over US$ 1.97 billion for fiscal 2023, a 24% increase from the previous year.

However, having just emerged from losses and significant debts, these airlines might not be financially robust enough to withstand another major business environment shift.

Additionally, these airlines need to consider the competition for higher-paid pilots following fleet expansion and carefully manage costs to ensure financial sustainability.

Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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