Bangkok Airways Plans 30 New Narrowbody Aircraft Order, and More

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Bangkok Airways Plans 30-Aircraft Fleet Renewal Amid Tourism Surge and Aging Fleet Concerns

Bangkok Airways is gearing up to order as many as 30 new narrowbody aircraft as part of a major fleet renewal and expansion initiative.

The Thai carrier plans to place orders with aircraft manufacturers Airbus, Boeing, or Embraer for at least 20 single-aisle jets in the first half of 2025, with options for approximately 10 more.

This strategic move aims to replace its aging fleet, some aircraft now reaching 20 years old, while accommodating increased tourism demand in Thailand.

Key Points

• Bangkok Airways aims to grow the fleet to at least 30 jets within 4-5 years through purchases and leases

• The current fleet consists of 25 aircraft, including Airbus A319s, A320s, and ATR 72-600s

• The airline has already seen a 14% increase in advanced bookings for Q2 2025, typically a low season

• Temporary capacity boost secured through wet leasing two Airbus narrowbodies from French operator Amelia for winter 2024/2025

• Bangkok Airways owns and operates Samui airport, which has runway limitations restricting aircraft types that can serve it

What It Means

Bangkok Airways' fleet renewal comes at a moment as Thailand anticipates a record 40 million visitors in 2025.

The carrier's unique position as Samui airport's owner provides competitive advantage in a high-value leisure market experiencing renewed interest.

This significant order will intensify competition between aircraft manufacturers eager to secure deals in the growing Southeast Asian aviation market.

Other Key Aviation Industry Updates for Today 👇

2. Air India Eyes Major Fleet Expansion with Potential 50+ Widebody Jet Order

Air India is negotiating a multi-billion dollar order for 30-40 widebody jets from Airbus and Boeing, potentially exceeding 50 aircraft.

The deal focuses on Airbus A350 and Boeing 777X models, with details expected to emerge closer to the Paris Air Show in June.

This follows Air India's massive 2023 order of 470 aircraft and adds to its existing backlog of 50 A350s, 10 777Xs, and 20 787 Dreamliners.

The expansion aims to help the Tata-owned carrier recapture international market share amid growing demand for long-haul travel from India.

3. Ethiopian Airlines and Etihad Form Strategic Partnership

Ethiopian Airlines and Etihad Airways signed a landmark joint venture agreement on March 19, 2025, in Addis Ababa.

This partnership includes a comprehensive codeshare arrangement and new direct flights between their hubs.

Ethiopian will launch daily flights to Abu Dhabi on July 15, while Etihad will begin service to Addis Ababa on October 1.

The collaboration aims to enhance connectivity across Africa, the Middle East, and Asia, giving passengers seamless access to both carriers' extensive networks, including major African cities and key Asian destinations.

4. Power Bank Fire Forces Hong Kong Airlines to Make Emergency Landing

A Hong Kong Airlines flight HX115 from Hangzhou to Hong Kong made an emergency landing in Fuzhou today after a fire erupted in an overhead compartment.

All 168 passengers and crew evacuated safely.

The fire is suspected to have been caused by a power bank, highlighting growing concerns about lithium battery devices on flights.

This incident follows similar battery fires on Air Busan and Batik Air, prompting several airlines to restrict power bank usage.

5. Canadian Flair Airlines Cancels Nashville Flights as US-Canada Trade War Intensifies

Canadian ultra-low-cost carrier Flair Airlines has canceled its Toronto-Nashville route amid escalating US-Canada tensions.

The airline confirmed it "won't be flying to Nashville this summer," resulting in a loss of approximately 18,000 seats. This follows President Trump's implementation of 25% tariffs on Canadian imports in February 2025.

Other Canadian airlines including Air Canada, WestJet, Sunwing, and Air Transat have also reduced US flights as Canadian travel to the US has dropped significantly, with leisure bookings to American cities falling 40% in February compared to last year.

6. Allegris First Class Debuts on Lufthansa's Summer Schedule

Lufthansa has confirmed its Allegris First Class suites will be available on A350-900 flights from Munich to San Francisco, Chicago, San Diego, Shanghai, and Bengaluru starting March 30.

The premium cabin features two individual suites and a "Suite Plus" that can be combined into a double bed, with ceiling-high walls, lockable doors, and 43-inch screens.

Nearly half a million passengers have experienced the new cabins since February. Additional routes include Newark in mid-April and Charlotte in August.

Lufthansa is also renovating First Class check-in areas in Frankfurt and Munich to enhance the ground experience.

7. Southwest Reduces Airport Staff Across Four Major Airports

Southwest Airlines is eliminating 120 ground operations positions at four airports: Baltimore, Los Angeles, San Jose, and Burbank.

Affected employees can relocate, apply for different positions, or accept severance packages. This follows Southwest's first-ever mass layoffs in February, which cut 1,750 corporate jobs.

The airline cites overstaffing and modest 2025 growth plans as reasons for the cuts.

These changes come amid other major shifts including new baggage fees, assigned seating, premium seats, and red-eye flights as Southwest responds to financial pressures and investor demands.

8. Post-Korean Air Merger, Asiana Airlines Reduces European Flight Frequency

Asiana Airlines is reducing flights to three European destinations starting April 2025 as part of European Commission requirements following its December 2024 merger with Korean Air.

The Seoul-Rome route will decrease from five to four weekly flights from April 25, Frankfurt service drops from daily to four weekly flights from April 30, and Paris flights reduce from six to five weekly from May 12.

Budget carrier T'Way Air will take over these canceled frequencies.

Affected passengers will be rebooked, offered alternative flights with other airlines, or given full refunds with compensation for additional expenses.

9. Castlelake Closes $2 Billion Aviation Fund Amid Aircraft Supply Constraints

Castlelake announced today the final closing of its fifth aviation fund, raising over $2 billion in capital commitments.

The fund, Castlelake Aviation V Stable Yield L.P., attracted diverse global institutions, including pensions, sovereign wealth funds, and endowments.

This represents Castlelake's largest dedicated aviation fund to date. Since 2005, the Minneapolis-based alternative investment manager has invested over $21 billion in aviation opportunities.

The company cites a persistent shortage of flexible capital in aviation and chronic aircraft undersupply as creating durable investment opportunities for delivering attractive risk-adjusted returns to investors.

10. Four-Year Contract Standoff Approaches Conclusion at United Airlines

United Airlines flight attendants, represented by the Association of Flight Attendants-CWA, are making progress in contract negotiations after four years of talks.

On March 19, they demonstrated at nearly 20 airports worldwide demanding better pay, as they currently earn 20% less than American Airlines counterparts.

Despite United's $3.1 billion profit in 2024, flight attendants seek double-digit pay increases, boarding pay, and improved scheduling.

Union president Ken Diaz expressed optimism that an agreement could be reached within months, with negotiations scheduled through May and management now showing a willingness to meet more frequently.