Welcome!

News Feed Item

Competition heats up in Thailand's skies

BANGKOK, Jan. 29, 2014 /PRNewswire/ -- Intense competition from entry of new players in to the market, struggling national carrier and volatile political climate is impacting Thailand Aviation immensely in the short term. And given the imminent impact of ASEAN agreement, the time lost at this juncture could be critical for Thailand businesses.

Ravi Madavaram, Aerospace & Defense consultant from Frost & Sullivan said that, "ASEAN has triggered a mad rush by different airlines to reach all the major markets in the region – Indonesia, Singapore, Thailand, Malaysia, Vietnam and Philippines. But the latest zone of significant market activity is seen in Thailand. This is predominantly because there has been no major LCC airline which was founded in Thailand apart from Nok Air. Indonesia has Lion Air, Singapore has Tiger Air, Malaysia has AirAsia and Philippines have Cebu Pacific. This lack of home grown regional LCC has left the market open for LCC's from elsewhere."

AirAsia has been in Thailand for a decade, almost at the same time when Nok Air came into existence. However, AirAsia has been the dominant player in the region and Nok Air limited itself to compete in Thailand. Recent entry of Lion Air, Thai Airways internal challenges, Bangkok Airways growth plans, launch of NokScoot and AirAsia X entry contribute to the challenging times ahead for airlines in 2014.

"AirAsia is expected to see immense competition in the regional LCC market from Lion. Nok Scoot will compete with AirAsia X. Nok Air will see domestic LCC competition from AirAsia and Lion Air. Even though Thai Airways focuses on long haul full service market, due to its cost structure, top management issues and increased competition from middle-east airlines, Thai Airways will have a challenging 2014," he added.

With so much seat capacity being added in the market, the yields are going to fall significantly in all routes. Price wars will be prevalent throughout the year to gain market share by each player. Nok Air and NokScoot are expected to take a hit as they will be slow to respond to market compared to AirAsia and Lion Air. But the war to look out for will be between Thai AirAsia and Thai Lion. Thailand will be the battle ground before they move onto the bigger platform of ASEAN.

He commented that, "The one player who has not entered this market is Tiger Air, which has taken a different approach to ASEAN compared to AirAsia or Lion Air. Tiger Air formed alliances with home grown LCC's in most of the countries – Cebu Pacific in Philippines, Mandala in Indonesia, Spicejet in Indonesia. Lack of home grown LCC's in Thailand limited the options that Tiger could explore. However this could be a blessing in disguise for Tiger as it could avoid all the challenges in 2014 and enter Thailand at a later stage."

"With the political unrest, the air travel demand is expected to decrease which will only intensify the market concentration. Whatever the strategies of different airlines are, 2014 is going to be an interesting year for aviation in Thailand," he said.

Further information or interview, please contact

Sasikarn Watt
Corporate Communications – Thailand, Frost & Sullivan
Tel. +66 2 637 7414
Email: [email protected]

 

SOURCE Frost & Sullivan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Your job is mostly boring. Many of the IT operations tasks you perform on a day-to-day basis are repetitive and dull. Utilizing automation can improve your work life, automating away the drudgery and embracing the passion for technology that got you started in the first place. In this presentation, I'll talk about what automation is, and how to approach implementing it in the context of IT Operations. Ned will discuss keys to success in the long term and include practical real-world examples. Ge...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
"NetApp's vision is how we help organizations manage data - delivering the right data in the right place, in the right time, to the people who need it, and doing it agnostic to what the platform is," explained Josh Atwell, Developer Advocate for NetApp, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...