Recovering from pandemic-related losses, Southeast Asian airlines are securing significant numbers of aircraft purchase agreements to fulfill growing demand as tourists return. Indonesia’s national carrier, Garuda, plans to lease eight planes this 12 months, increasing its fleet to 80 and increasing flight frequency by the tip of the 12 months.
Garuda Indonesia Chief Financial Officer Pahala Mansury said the monthly cost of renting an aircraft ranges from $200,000 to $500,000.
According to CEO Chai Eamsiri, Thai Airways intends to expand its fleet from 70 aircraft at the tip of 2023 to 96 by 2033. In addition, the Thai government has prolonged visa exemption to 93 countries from 57, which is anticipated to strengthen the recovery of the aviation industry after the pandemic.
Similar investments are being made by other Southeast Asian airlines. in increased efficiency. Philippine Airlines has tripled its investment this 12 months to $450 million for fleet modernization and maintenance. The airline also plans to order 22 latest planes to serve routes to North America and other destinations.
As demand for air travel increases, Southeast Asian airlines are aiming to realize growth again.
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Singapore was the primary country in Southeast Asia to partially lift its international travel ban in September 2021. In a bid to regain market share from European and American competitors that resumed operations earlier, Singapore Airlines quickly increased its flight numbers, posting a net profit of over US$1.97 billion in fiscal 2023, up 24% year-on-year.
However, these airlines, having just emerged from losses and significant debt, might not be financially strong enough to resist one other major change within the business environment.
In addition, airlines must consider competition for higher-paid pilots as they expand their fleet and thoroughly manage costs to make sure financial stability.
