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Thai AirAsia to Weather Stiff Competitions
11th Jul 2013
Despite the stiff competitions looming ahead with the entry of two more budget carriers in the domestic market, Thai AirAsia bowed to remain strong.
Indonesia's low-cost leader Lion Air and Vietnam's own VietJet Air are expected to foray into the local market anytime this year.
The two carriers are now in different stages of negotiations with their prospective Thai partners. VietJet Air, especially, has already finalized a deal with Thailand's Kan Air and they are now in advance preparation for the maiden operations anytime this year of their joint venture, Thai VietJet Air.
Thai AirAsia's CEO, Tassapon Bijleveld, remarked that new entrants would find themselves in a tough market especially now that allocations for better time slots are already taken.
He further added that no other current, or future airlines for that matter, can beat the reasonably-priced tickets of Thai AirAsia which is the most economical to date.
Thai VietJet Air is the offspring of the union between VietJet Air of Vietnam and Kan Air of Thailand. Kannithi Aviation Co., which operates Kan Air, will hold the majority stakes of the new budget carrier while VietJet Air will keep the remaining 49.51%.
Kan Air was founded in 2010 by Capt Sompong Sooksanguan with a registered start-up capital of Bt200 million. It currently serves four local destinations in Thailand including Chiang Mai, its main hub. From Chiang Mai, it flies to Mae Hong Son, Nan, Pai and Phitsanulok.
The airline is also building a new airport on Pha-ngan Island which it will use as a launch pad for future services to various destinations in the country such as Don Mueang, Huan Hin and Phuket.
VietJet Air, meanwhile, was established in 2007 but didn't commence operations until December of 2011. It started out as a domestic carrier flying to key markets in Vietnam but eventually expanded overseas with its first international service from Ho Chi Minh to Bangkok in early 2013. It launched its second route to Bangkok in June 2013, this time from Hanoi.
VietJet Air's Managing Director, Luu Duc Khanh, said that they decided to launch its maiden international service to Thailand for its potential as a regional economic behemoth.
Though the new carrier didn't mention any fare structures for its maiden operations, airline officials promised that they will offer value fares and more efficient service to their future passengers.
The young budget airline will have its main hub in Suvarnabhumi Airport and plans to connect the capital to popular destinations which include Chiang Mai, Hat Yai and Phuket. It also lists China as a future destination for its charter flights from Bangkok.
With the advent of other low-cost competitors, Thai AirAsia is not threatened at all as it will inaugurate three more international routes from its Bangkok hub - two to China and one to Nay Pyi Daw in Myanmar.
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