AirAsia says "business as usual" in Thailand

KUALA LUMPUR, Sep 20 (Reuters) Asian airline AirAsia Bhd declared ''business as usual'' in Thailand today, despite fears that a military coup there would hurt tourism.

The budget airline, which runs flights from Kuala Lumpur to the Thai capital and domestic flights in Thailand, said it had not seen any cancellations since yesterday night's bloodless coup.

''No flights have been cancelled. Flights are very full. It's business as usual,'' Chief Executive Tony Fernandes told Reuters.

''There's no concern about Thailand,'' he said in a phone interview, while waiting to catch a flight from Kuala Lumpur to Bangkok.

Malaysia-based AirAsia serves 10 destinations in Thailand. It also operates five flights daily to Bangkok from Kuala Lumpur.

The Thai armed forces yesterday seized power without firing a shot, dismissed Prime Minister Thaksin Shinawatra's government, revoked the constitution and promised a swift return to democracy after political reforms.

Shares of AirAsia, which owns 49 per cent of ThaiAirAsia, a joint venture set up in 2003 with a firm linked to the family of Thaksin, fell as much as 4.5 per cent today on fears of a sharp drop in travel in and around Thailand.

Several countries have issued travel warnings about Thailand.

Australia, New Zealand and South Korea have urged their citizens not to visit Thailand, while others such as Malaysia and Japan have urged people to reconsider all but essential trips.

AirAsia shares recovered to close down 0.6 per cent at 1.55 ringgit today.

REUTERS SSC VV1705