SYS-CON MEDIA Authors: Pat Romanski, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

News Feed Item

Competition heats up in Thailand's skies

BANGKOK, Jan. 29, 2014 /PRNewswire/ -- Intense competition from entry of new players in to the market, struggling national carrier and volatile political climate is impacting Thailand Aviation immensely in the short term. And given the imminent impact of ASEAN agreement, the time lost at this juncture could be critical for Thailand businesses.

Ravi Madavaram, Aerospace & Defense consultant from Frost & Sullivan said that, "ASEAN has triggered a mad rush by different airlines to reach all the major markets in the region – Indonesia, Singapore, Thailand, Malaysia, Vietnam and Philippines. But the latest zone of significant market activity is seen in Thailand. This is predominantly because there has been no major LCC airline which was founded in Thailand apart from Nok Air. Indonesia has Lion Air, Singapore has Tiger Air, Malaysia has AirAsia and Philippines have Cebu Pacific. This lack of home grown regional LCC has left the market open for LCC's from elsewhere."

AirAsia has been in Thailand for a decade, almost at the same time when Nok Air came into existence. However, AirAsia has been the dominant player in the region and Nok Air limited itself to compete in Thailand. Recent entry of Lion Air, Thai Airways internal challenges, Bangkok Airways growth plans, launch of NokScoot and AirAsia X entry contribute to the challenging times ahead for airlines in 2014.

"AirAsia is expected to see immense competition in the regional LCC market from Lion. Nok Scoot will compete with AirAsia X. Nok Air will see domestic LCC competition from AirAsia and Lion Air. Even though Thai Airways focuses on long haul full service market, due to its cost structure, top management issues and increased competition from middle-east airlines, Thai Airways will have a challenging 2014," he added.

With so much seat capacity being added in the market, the yields are going to fall significantly in all routes. Price wars will be prevalent throughout the year to gain market share by each player. Nok Air and NokScoot are expected to take a hit as they will be slow to respond to market compared to AirAsia and Lion Air. But the war to look out for will be between Thai AirAsia and Thai Lion. Thailand will be the battle ground before they move onto the bigger platform of ASEAN.

He commented that, "The one player who has not entered this market is Tiger Air, which has taken a different approach to ASEAN compared to AirAsia or Lion Air. Tiger Air formed alliances with home grown LCC's in most of the countries – Cebu Pacific in Philippines, Mandala in Indonesia, Spicejet in Indonesia. Lack of home grown LCC's in Thailand limited the options that Tiger could explore. However this could be a blessing in disguise for Tiger as it could avoid all the challenges in 2014 and enter Thailand at a later stage."

"With the political unrest, the air travel demand is expected to decrease which will only intensify the market concentration. Whatever the strategies of different airlines are, 2014 is going to be an interesting year for aviation in Thailand," he said.

Further information or interview, please contact

Sasikarn Watt
Corporate Communications – Thailand, Frost & Sullivan
Tel. +66 2 637 7414
Email: [email protected]

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...