Summary
Jet Star Asia has ceased its operations. Garuda is struggling with debt repayments. Meanwhile, Malaysia Airlines is at risk of falling back into the red, while Thai Airways is just emerging from bankruptcy.
Tourist numbers are at an all-time high, yet some Southeast Asian carriers are struggling. The post-COVID euphoria appears to be deflating, as headwinds in the form of high fuel prices, supply chain issues and a shrinking middle class are hitting the bottom line of many airlines. Meanwhile, stiff competition make for low profits.
Yet, some of the struggling companies are flag carriers. Their survival carries not just economic implications, but also national pride. Will government intervention be required, or will market forces be allowed to play out? What is the future for Southeast Asia's aviation industry and what will help it take off once again?
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