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Airlines Embrace Flexibility in an Increasingly Complex Market

For airlines across the Asia-Pacific region, growth is no longer simply about adding aircraft or launching new routes. Instead, success increasingly depends on the ability to adapt to shifting market conditions while remaining committed to long-term strategic objectives.

That balance between flexibility and growth emerged as a recurring theme throughout ISTAT Asia, held 12-14 May in Bangkok, Thailand. Airline leaders acknowledged the challenges posed by geopolitical uncertainty, supply chain constraints and aircraft delivery delays, but they consistently emphasized that those headwinds have reinforced — not changed — the need for disciplined planning and operational agility.

Building Stronger Airlines for the Long Term

Many of the executives speaking at the conference had something in common: They have spent the past several years leading significant transformation efforts within their organizations.

Chai Eamsiri, CEO of Thai Airways, reflected on the airline’s recovery following its financial rehabilitation in 2020. Alongside restructuring the organization, Thai Airways streamlined operations, modernized its fleet and reduced reliance on older-generation aircraft while investing in digital capabilities and cost discipline. The airline has already begun rebuilding its fleet and expects to return to pre-pandemic fleet levels before continuing its next phase of growth.

That transformation has also reshaped how Thai Airways approaches future expansion. Rather than simply adding capacity, the airline is focused on strengthening Bangkok’s role as both a destination and a connecting hub while carefully matching aircraft to market demand. As new aircraft enter the fleet, executives said the airline is evaluating a range of financing structures and ownership models to support its long-term growth strategy.

Bryan Foong Chee Yeong, CEO of airline business for Malaysia Aviation Group, described a similar evolution. Following years of restructuring, including a significant reset during the pandemic, the group has focused on addressing longstanding structural issues while building a more resilient business. Rather than attempting to recreate its previous operating model, management has concentrated on creating a stronger foundation capable of supporting sustainable growth well into the future.

For Garuda Indonesia, the transformation remains a work in progress.

Balagopal Kunduvara, chief financial officer of Garuda Indonesia, outlined a broad review of the airline’s strategy following leadership changes in late 2025. That effort includes redefining the relationship between Garuda and Citilink, simplifying fleet deployment, improving network coordination and positioning the group for measured growth despite limited aircraft availability. With new aircraft in short supply, Garuda expects much of its near-term expansion to come through lease extensions and opportunities in the secondary market while continuing to optimize its existing fleet.

Flexibility Becomes a Competitive Advantage

While each airline faces unique circumstances, the Airline Financing Panel highlighted several common priorities shaping fleet and financing decisions across the industry.

Captain Wasan Kanjana-huttakit, director and vice president of fleet management with Thai Airways, described the airline’s ambitious plan to grow from approximately 40 aircraft following restructuring to roughly 150 aircraft over the next five years. Achieving that growth will require balancing multiple financing sources, evaluating ownership structures and continuing to invest in passenger experience as new aircraft enter service.

Alvin Limqueco, senior vice president and chief supply chain officer of Philippine Airlines, outlined a similarly significant investment pipeline. The carrier is preparing to take delivery of additional Airbus A350-1000 and A321neo aircraft over the coming years while continuing to serve both international long-haul markets and its extensive domestic network.

Mustafa Çavdar, chief financial officer of SunExpress, noted that the airline also continues to invest for growth, with additional Boeing 737 MAX deliveries scheduled over the next several years as it expands its leisure, visiting friends and relatives, and domestic business.

Although the airlines represented different business models and geographic markets, the discussion revealed a consistent approach to planning. Rather than allowing manufacturer delays or geopolitical events to derail long-term objectives, carriers are adapting financing strategies, revising fleet deployment plans and maintaining the flexibility needed to respond as market conditions evolve.

That same mindset extended beyond fleet planning.

As geopolitical tensions affected fuel markets and operating environments during the conference, Chai emphasized the importance of maintaining strong liquidity and resisting short-term decision-making driven by uncertainty. Years of restructuring, he explained, have left Thai Airways better positioned to withstand market disruptions while continuing to pursue growth opportunities as they emerge. Equally important, he stressed the value of long-term partnerships with financiers and lessors that supported the airline through its restructuring and continue to support its future expansion.

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