AirAsia X opposes travel levy

With a full recovery for aviation in sight, stumbling blocks such as the<br/>tourism fee the Thai government plans to collect should be set aside as an influx of travellers can create more economic impact than a small levy, according to Tony Fernandes, CE of Capital A and acting group CE of AirAsia X. Two long-haul carriers -- Malaysia's AirAsia X Berhad and Thai AirAsia X -- have rebounded strongly after the former completed its debt restructuring in March, while the latter is entering the rehabilitation process and must gain approval from creditors after the Central Bankruptcy Court accepted the case. "We can restart at the right time as more countries are reopening borders, particularly Japan and South Korea in Northeast Asia, which is our main destination," he said. Fernandes said AirAsia X can return to profitability even though China's borders remain closed as its airlines are planning new routes to Europe next year, namely London and Istanbul for AirAsia Berhad and key cities in eastern Europe such as Prague, Vienna and Budapest for Thai AirAsia X. However, if China lifts entry restrictions, this could be a big bonus for growth, he said. As Malaysia starts to reopen, AirAsia X Berhad will be able to see a full recovery of seat capacity by Q2 2023, matching the top line at pre-pandemic levels by the second half of 2023, said Mr Fernandes. Thailand might see the slowest recovery because of complicated entry restrictions initially, but soon after Thailand Pass registration and other requirements were lifted in July, travel demand was robust as tourists still want to visit the nation, he said. Thai AirAsia X flies three jets to Seoul and Tokyo and plans to add inaugural services to Sydney and Melbourne in December. AirAsia X Berhad has routes to Seoul, Busan, New Delhi, Tokyo, Osaka and Sapporo.<br/>