Budget airlines: Competition grows in Thailand

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VietJetAirIn Thailand, the market for budget airlines is set to become more competitive with the launch of  Thai Lion Air and VietJet Air in the coming months. VietJet Air will launch its first flights between Thailand and Vietnam in the first quarter of 2014, while Thai Lion Air will start twice-daily flights to Chiang Mai and Jakarta and a once-daily flight to Kuala Lumpur in December 2013. Analysts said some routes may become over-serviced, making deeper price-cutting inevitable.

Thai Lion Air will also be the first airline in Thailand to operate the B737-900 ERs. Indonesia’s Lion Air is the latest airline to enter Thailand’s aviation market. To stand out from other low-cost players, the airline is offering its passengers a free 15-kilogramme baggage allowance. Analysts said this just makes the competition even stiffer for incumbents such as Thai Air Asia and Nok Air, which, however, allows 30 kilogrammes free luggage.

What carriers lose on lower prices, they hope to make up by carrying more passengers in a low-cost market that accounts for just 20 percent of in- and out-bound travel. In 2012, Jetstar Asia served two million passengers in the Singapore-to-Bangkok market alone. And it is the growing traffic from China and the potential traffic from its newly-opened-up neighbour that offer the most potential.

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Reading Time: 1 minute

In Thailand, the market for budget airlines is set to become more competitive with the launch of  Thai Lion Air and VietJet Air in the coming months. VietJet Air will launch its first flights between Thailand and Vietnam in the first quarter of 2014, while Thai Lion Air will start twice-daily flights to Chiang Mai and Jakarta and a once-daily flight to Kuala Lumpur in December 2013. Analysts said some routes may become over-serviced, making deeper price-cutting inevitable.

Reading Time: 1 minute

VietJetAirIn Thailand, the market for budget airlines is set to become more competitive with the launch of  Thai Lion Air and VietJet Air in the coming months. VietJet Air will launch its first flights between Thailand and Vietnam in the first quarter of 2014, while Thai Lion Air will start twice-daily flights to Chiang Mai and Jakarta and a once-daily flight to Kuala Lumpur in December 2013. Analysts said some routes may become over-serviced, making deeper price-cutting inevitable.

Thai Lion Air will also be the first airline in Thailand to operate the B737-900 ERs. Indonesia’s Lion Air is the latest airline to enter Thailand’s aviation market. To stand out from other low-cost players, the airline is offering its passengers a free 15-kilogramme baggage allowance. Analysts said this just makes the competition even stiffer for incumbents such as Thai Air Asia and Nok Air, which, however, allows 30 kilogrammes free luggage.

What carriers lose on lower prices, they hope to make up by carrying more passengers in a low-cost market that accounts for just 20 percent of in- and out-bound travel. In 2012, Jetstar Asia served two million passengers in the Singapore-to-Bangkok market alone. And it is the growing traffic from China and the potential traffic from its newly-opened-up neighbour that offer the most potential.

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