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Thai AirAsia Continues to Dominate Domestic Air Travel
23rd Feb 2017
Thai AirAsia continues to dominate domestic air travel and to increase its market share. The carrier revealed that its domestic passenger traffic share grew to 29.5% in 2016, which was up from 28.5% that this airline recorded in 2015.
But apparently, TAA doesn’t want to stop just there as the Chief Executive Officer of the LCC Tassapon Bijleveld said the airline wants to increase its market share even further this year, up to 30%. In addition, Thai AirAsia also aims to carry 19.5 million passengers in 2017, 2.5 million more than the projected 17 million last year.
To get there, TAA has procured six new Airbus A320 aircraft, increasing its fleet to 56 at the moment and keeping a load factor of 84%.
As for Thai AirAsia’s rivals, Nok Air saw its market share drop from 24.8% in 2015, to 20.3% in 2016, largely due to the pilot shortage the budget carrier suffered in February after an impromptu pilot walk-off caused by a dispute with the top of the company. As a result, the airline was short of staff for much of last year and had to delay or cancel a number of flights, this damaging its reputation.
Thai Airways International (THAI) had its domestic market share drop from 11% in 2015 to 9.1% last year, while its sister airline THAI Smile went up from 8.7% to 10.5%.
Things weren’t much better for the other full-time carrier, Bangkok Airways, which recorded a drop in market share from 12.3% in 2015 to 11% in 2016.
The subsidiary of Lion Group, Indonesia, and Thai Lion Air increased its market share from 13.9% in 2015 to 18.7% in last year.
Finally, Kan Air’s market share went up from 0.3% in 2015 to 0.9% in 2016.
Looking at these figures, one can see how much the market has shifted in favour of budget carriers. Whereas the first LCC in Thailand started operating 14 years ago, today legacy airlines have all but lost their position and take up only around 20% of the total market share in Thailand, leaving the bigger chunk of the market to no-frills airlines.
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