Thai AirAsia adopts crowdfunding as fundraising strategy

Thai AirAsia (FD, Bangkok Don Mueang) has launched a crowdfunding campaign to facilitate retail investors and the general public investing in the company, AirAsia Group has announced in a statement.

Approved and regulated by Thailand’s Securities and Exchange Commission, the “debenture” was made available for subscription through PeerPower, a Bangkok-based bond investment platform that connects business owners and investors. The USD2.5 million bond has been listed on the site under the name Project Lift.

The “low minimum requirement for investment” in Thai AirAsia will enable investors to “actively participate in the drive to support its journey to recovery,” the statement issued on September 9 said.

Proceeds will help the airline to shore up its short-term stability, it clarified, and the funds will be maintained concurrently with its existing funding plan, which consists of a capital raise and business restructuring.

Last month, Thai AirAsia pledged to restart 11 domestic routes out of Bangkok Don Mueang from September 3, as the country confirmed that interprovincial travel, including to and from the highest-risk provinces, will be allowed again as of September 1. It is the “positive signals” surrounding this resumption of flight operations that the airline hopes to capitalise on.

According to the ch-aviation capacities module, the 11 routes are between the capital and Chiang Mai, Hat Yai, and Phuket 7x weekly, Chiang Rai, Khon Kaen, Nakhon Si Thammarat, Roi Et, Ubon Ratchathani, and Udon Thani 4x weekly, and Nakhon Phanom and Narathiwat 2x weekly.

Thai AirAsia CEO Santisuk Klongchaiya said that the crowdfunding campaign – its first foray into the funding alternative – would be “another avenue for people to show their support” for the low-cost carrier.