Low-Cost Airlines Have Served More Passengers this Year.

30th Oct 2012

Budget carriers flying to Thailand carried 40 percent more passengers than major full-service airlines during the fiscal year ending 30 September 2012.

According to the figure as compiled by Airports of Thailand (AoT), the no-frills airlines had flown a total of 20.34 million passengers through Thailand's six major airports, a figure representing no less than 38 percent of the country's 52.36 million air travelers.

Eight years ago, the budget carriers were a virtual unknown in the country. Air travelers by then had no other options but take flights via full-service carriers who dominated the skies and charged tickets that today's most budget-conscious travelers are unwilling to pay.

During the previous fiscal year, the figure was 17.64 million passing through airports operated by Airport of Thailand or equivalent to almost 37% of the total 47.8 million passengers.

Likewise, the aircraft movement also grew by 15.12% to 152,800 over the previous year.

By sector, the international passenger traffic flying with budget carriers grew by 18.62% to 6.88 million as against domestic traffic which only grew by 13.59% to 13.45 million.

The two chief executives of Thailand's two biggest low-cost carriers, Thai AirAsia and Nok Air, said that they both expected the budget airlines will grow steadily and the incremental increase in the market share of no-frills carriers will continue in the coming years.

Patee Sarasin of Nok Air and Tassapon Bijleveld of Thai AirAsia both agreed that within the 5-year period the market share of budget carriers will be more than 50%.

In general, low-cost carriers will continue to be popular among air travelers in the years ahead as they keep expanding by opening up more routes, acquiring more aircraft and adding more capacities

Mr. Tassapon observed that people will always look for cheaper ways to travel and only budget airlines can provide it. He boldly predicts that his Thai AirAsia will carry more people within five years than Thai Airways International (THAI), the country's flag carrier.

Last year, THAI had flown a total of 18.39 million passengers. Mr. Tassapon is confident that THAI's figure can be easily surpassed by Thai AirAsia in five years as it (TAA) targets 8 million passengers this year and 10 million by next year or an increment of 20% annually up to 2017.

Both executives also agreed that full-service airlines need to adjust their strategy to cater to premium passengers - those who can afford to pay extra for services and products not provided by budget airlines.

Thailand continues to draw more foreign budget carriers owing to its being a popular tourist destination in the region. China's pioneering and lone budget carrier, Spring Airlines, launched in August a direct daily service between Shanghai and Bangkok.

Meanwhile, TAA is planning to mount additional service to its existing network and open more routes overseas. Nok Air, for its part, will reinstate international flights by 2013, initially to southern China.

Related News

Bangkok Airways to Resurrect Vital Flight Routes to Northern Thailand

Thai Vietjet Air: Exclusive May Offers for FUN Rewards Members

Hua Hin Airport anticipates surge in international flights after expansion

No more flights to Mae Hong Son

Related Travel Guide Articles

Chiang Mai's Food Odyssey: Street Eats to Gourmet Feasts

6 Steps to Grabbing Cheap Flights - DomesticFlightsThailand

Getting Around Bangkok