O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 29 1.1 NETWORK AND SCHEDULES Thai AirAsia focuses on short-haul routes to airports in and around major populated centres and travel destinations, typically operating within a radius of up to 4,300 kilometres and flight duration of up to five and a half hours from the hub. Thai AirAsia route network offers frequent point-to-point services and is not scheduled in parking its aircraft at airports overnight other than the four hub airports comprising Bangkok (Don Mueang), Bangkok (Suvarnabhumi), Phuket, and Chiang Mai as of 31 December 2022. In 2022, our extensive route network reached a total of 14 countries in Asia, covering 23 domestic destinations and 14 international countries, along with 103 domestic and 46 international routes totalling 149 routes. With our extensive route network, our customers have access to the combined route network of the airlines under Capital A in countries such as Malaysia, Indonesia, and the Philippines. 1.2 NETWORK EXPANSION When considering adding a new route to its network, Thai AirAsia takes into account factors such as potential load factors, population density, economic factor and tourism industry at the point of departure and destination, current and potential competition, airport fees, traffic rights and distance. This process of opening new routes typically takes three months and those new routes are to be approved by Thai AirAsia’s Board of Directors as part of their approval of Thai AirAsia’s budget. If a new route is not profitable after a trial period of between six to eight months, we either lower the frequency of the route or suspend or cancel the route. In 2022, the challenge brought by the COVID-19 outbreak still continued from 2021. However, the demand for travel improved throughout the year and airlines have increased the number of flights in accordance with the higher number of passengers. This was also supported by the government lifting measures to prevent the spread of COVID-19 by allowing travel in or out Thailand. In 2022, Thai AirAsia network had a total of 149 routes while opening inaugurated international routes including Bangkok (Don Mueang) to Fukuoka (Japan) and Dhaka (Bangladesh). Thai AirAsia also added more frequency on the top-ranked domestic and international routes. Nevertheless, Thai AirAsia aims to firmly establish itself as Thailand’s leading carrier in both trunk and secondary tourism destinations to maximise the returns, especially in the domestic market. We also support the passenger growth for connecting domestic travellers and people travelling among the countries within this region. Also, Thai AirAsia is enhancing the Suvarnabhumi hub as the gateway to the international market and strengthening its domestic market. Moreover, Thai AirAsia incorporates cargo routes as part of its expansion plans to ensure that the airline remains competitive in both passenger and cargo segments. 2. ANCILLARY SERVICES Thai AirAsia provides various ancillary services to the passengers, starting from the services before boarding, in-flight services, and other services in relation to our air passenger services. These services generate another stream of revenue in addition to Thai AirAsia’s core revenue from scheduled passenger service. Ancillary revenue is accounting for 17 percent of revenues from sales and services in 2020 and 2021 and 19 percent in 2022, which are grouped into categories as below. 2.1 SERVICES BEFORE BOARDING AND FEES Thai AirAsia offers a range of products and services to passengers on airasia website and at sales counter as follows: • Checked Baggage: Baggage charges are based on the weight of the baggage passengers wish to check-in and also upon the flight hour, timing of purchase and travel period. Pre-booking of the checked baggage at the time of the reservation will bring about lower fees. Additional fees will be charged for baggage with excess weight. • Xpress Baggage: Passengers can claim their baggage as fast as possible upon arrival at their terminal destination. Xpress baggage is available for booking along with flights. • Xtra Carry-On: In each flight, a passenger is allowed to carry two bags with a total of not more than seven kilogrammes. Passengers can purchase Xtra Carry-On to bring more bags, one of which the weight is not more than seven kilogrammes. The Xtra Carry-On must be purchased at the same time of flight booking. • Seat Selection: Seat selection is available with fees; passengers can choose any preferred seats on the flight, which is varied by seat zone, flight hour, and timing of the purchase. Pre-booking of seat selection at the time of the reservation will bring about lower fees. • Checked Sports Equipment: Passengers can check-in sports equipment including golf equipment, diving equipment, surfboard and bicycle. Checked Sports Equipment charges are based on the weight of the Sports Equipment and also upon flight hour, the timing of purchase and travel period. Pre-booking of the checked Sports Equipment at the time of the reservation will bring about lower fees. Additional fees will be charged for Sports Equipment with excess weight. • Bookings and Amendments: Passengers can make a booking at sales counters; booking fees will be applied. Booking amendments are possible 48-hour prior to flight time with amendment fees to be applied (name and route changes are not permitted). An additional service fee may be applied on a case-by-case basis. • Payment Processing Fees: Tickets are available for purchase either through an online purchase on the website or at The AirAsia ticket counter in the airport. Extensive payment method selections are available such as via credit card, debit card, direct debit, ATM payment, counter service, PromptPay, and QR Code with processing fees.
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