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Thailand's 2014 Aviation Growth Loses Steam
22nd Jan 2015
The country has been known all over the world not only for its majestic stupas and pagodas, but also for its world-class tropical beaches and resorts and other natural wonders.
Next to China, Thailand is the most visited country in Asia, posting a record 26 million foreign visitors in 2013.
The momentum, however, was broken last year when it was shaken by another political crisis that saw its tourism growth curtailed. This followed after the travel advisory issued by many countries to their citizens against unnecessary travel to Thailand.
Last year's traffic growth somewhat relaxed as compared to the previous period when it registered only a single-digit growth. This was primarily due to the decline in international arrivals. The country's domestic traffic, however, continued to surge during the period.
The country hopes to regain the confidence of foreign visitors for 2015 as the political situation in the country has stabilized.
What most industry analysts worry about is the overcapacity, as competition heats up between airlines as the ASEAN region enters the dawn of economic integration.
The most awaited economic integration among 10-member ASEAN economies this year allows freer intra-regional travel across their borders, which opens up new market and opportunities for many airlines operating in the region.
Thailand's low-cost aviation market continues to grow in size thanks, in part, to the growing numbers of budget airlines operating in the country.
Thai Airways Intl., the country's flag carrier, posted a negative growth in 2014 and saw a 17% drop in passenger numbers. It is currently undergoing restructuring program, part of which is the reduction in capacity.
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