Bank cites swing to low-cost airlines

BANGKOK Kasikorn Research Centre estimates the number of low-cost airline passengers travelling through Suvarnabhumi and Don Meuang airports will increase 24% to 30% to reach 29.22 to 30.63 million passenger movements in 2015.
The centre said this year the low-cost carrier business was robust despite political troubles in Thailand.
“Low-cost airline business has a high marketshare…domestic and short-haul routes did not decline and 70% of low-cost airline passengers are local residents, while international routes connecting to ASEAN and China were hit by a decline in Chinese tourists. However, low-cost carrier traffic continues to grow.”
“Competition among Thailand’s low-cost airlines intensified during the last three years…new routes opened and they have supported growth in tourism and the economy.”
inside no 1Until September this year, there were 66 aircraft in the fleets of low-cost airlines in Thailand an increase of 15% over the same period last year. They serve 32 domestic and 33 international routes, the report said.
“Japan and South Korea are the top new destinations for low-cost, long haul services and Thailand’s low-cost airline market, next year, will benefit from an ASEAN Open Skies policy,” the report claimed.
“The ASEAN Economic Community will boost intra-regional travel movements… and ASEAN Open Skies will also ease restrictions on routes and frequency between member countries.”
Thailand’s low-cost airlines serve 30 short to medium-haul routes –16 connect Thailand with ASEAN countries and seven with China, as well as Hong Kong, Macao and India.
The bank said last year there were 225 flights a week operated to ASEAN destinations accounting for 65% of all international routes at 335 flights per week.
“Although currently ASEAN member countries still have to sign off on open skies regulations, the aviation situation in the region is considered to be more relaxed,” the bank reported.
The centre then estimated with the expansion of low-cost airline business due to open skies, low-cost airline passengers travelling through Suvarnabhumi and Don Meuang airports should increase 24% to 30% to reach 29.22 to 30.63 million in 2015.
Kasikorn Research Centre is a subsidiary company of Kasikorn Bank, which conducts tourism and business research mainly on Thailand’s economy including tourism with reliable recommendations and indicators on business prospects.

sourced:ttrweekly.com