Servicing the Thai Traveling Class
Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on Asia Aviation Public Company Limited.
Background
Asia Aviation (AAV) is the majority owner of low-cost airline Thai AirAsia Company Limited.
AAV owns 55% of Thai AirAsia, with the remaining 45% owned by AirAsia Berhad (AIRA MK).
Thai AirAsia is currently the leader among low-cost carriers in Thailand with a fleet currently totaling 49 aircraft as of July 2016.
As the Thai middle class expands and spends more on travel and vacations, analysts expect the company’s revenues to grow.
Business Description
Thai AirAsia operates along international and domestic routes. Among the flights operated by AAV, 62% are domestic, and 38% are international. The entire fleet consists of 49 Airbus A320s.
International routes cover cities across China, such as Changsha, Chongqing, Guangzhou, Hangzhou, Kunming, Shenzhen, Wuhan and Xi’an. Other routes include points in Vietnam, India, Myanmar, Indonesia, Cambodia, Laos and Iran.
Domestic routes connect cities, such as Bangkok, Chiang Mai, Chiang Rai, Khon Kaen, Krabi, Loei, Nakhon Si Thammarat, Nan, Phuket, Surat Thani, Udon Thani, Roi Et, Nan, Loei and Hat Yai.
Thai AirAsia flights can be booked directly and through third parties—travel agencies or tour operators—as well as in the form of charter flights.
Leadership
CEO Tassapon Bijleveld has led the company since 2007. In the last five years under his leadership, Asia Aviation has been a mixed bag when it comes to Profitable Growth. The company moved from a #1 ranking in 2012 to ranking in the back half of the pack over the last four years.
Bijleveld studied marketing for both his B.A. and M.S. degrees.
Chairman Arak Chonlatanon has overseen the board since 2012 following his position as Energy Minister of Thailand.
World Class Benchmarking
Asia Aviation’s Profitable Growth metric was World Class in 2012, and is currently at #6, recovering from its 2014 trough.
The company ranks better than 560 of 1,400 large industrial corporations globally.
Profitability remained below average at #6 in the past 12 months, but this was actually a positive trend over the last two years. Growth has greatly improved, however, since 2013-2014 when it fell to last place.
The Profit margin has started to recover in the past 12 months. It has risen to #4 from #9 in 2014.
Sales growth and Margin change have both remained solid at #2 over the last 2 years.
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