Thai AirAsia (TAA), one of Thailand’s budget airlines, was granted a Bt2.1 billion (US$70 million) financial lease to purchase two Airbus A320s, according to an executive of Leasing ICBC (Thai).

Ong-art Vorachattarn, Leasing ICBC managing director, said the loan was approved with a strong belief in TAA’s capability, strength and success in managing the airline and its expansion domestically and regionally.

TAA chief executive officer Tassapol Bijleveld said Leasing ICBC has fully supported the low-cost airline with the financial lease.

It will be TAA’s second purchase of the Airbus A320, equipped with Sharklet fuel saving wing tip devices, it becomes the airline’s 29th aircraft, he said. (MCOT online news)

via Thai AirAsia spreads wings with new Airbus A320s | MCOT.net | MCOT.net.

Low Cost Airlines have doubled traffic in Thailand since 2009

LCCs have expanded over the last decade from essentially zero to penetrating almost 30% of Thailand’s total market. LCCs in 2012 accounted for 51% of domestic seat capacity in Thailand and 16% of international seat capacity, according to OAG data. LCCs in the year ending 30-Sep-2012 accounted for 28% of passengers at major airports in Thailand, including about 50% of domestic passengers and about 16% of international passengers, according to Airports of Thailand data.

LCCs over the last four years have doubled their traffic at Thailand’s main airports to over 20 million passengers, including 13.5 million domestic passengers and 6.9 million international passengers. The rate of LCC growth has been equal in both the domestic and international markets, sandwiching market leader Thai Airways