Impact of low-cost carriers' entry in Thailand | |
| Author | Thyne Lilavivat |
| Call Number | AIT Thesis no.TE-04-11 |
| Subject(s) | Airlines--Thailand Air travel--Thailand |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Civil Engineering |
| Publisher | Asian Institute of Technology |
| Series Statement | Thesis ; no. TE-04-11 |
| Abstract | Year 2004 was the year of low-cost carriers (LCCs) emergence in Thailand, there are three LCCs which are OneTwo-Go by Orient Thai Airlines, Thai AirAsia and Nok Air. This study attempted to evaluate the impact of LCCs entry in Thailand. Airline responsiveness to LCCs is surveyed to understand their strategies. The deregulation of Thai domestic air market is also compared with neighborhood country, Malaysia which is home place of first LCC in Southeast-Asia, Air Asia. Passenger characteristics based on surveyed data is analyzed to make more understand in passenger airline choice behavior between full-service and low-cost carrier. Chi-squared test shows that all attributes distribution; gender, age, occupation, household monthly income, trip purpose and ticket reservation, are different between full-service and low-cost carrier. The result also shows that for ticket reservation of low-cost carriers made through internet and airline call center are merely 35 percent, very low comparing to low-cost carriers in US and Europe which booking through internet and airline call center are almost of reservation. Others are to buy at airport, airline sell office and agencies. In addition, airline choice models of passenger on the competitive routes are estimated by discrete choice model using revealed preference method. Multinomial, binary and nested logit model are adopted to develop airline choice models which are compared to find tht best-fit one. As a result, airfare, flight frequency, passengers household-monthly-income and specific airline attribute such mileage programme seem to have effect on passenger to choose airline. Market segmentation approach is adopted based on passenger socioeconomic characteristics such household monthly income and trip purpose. The demand elasticity of each airline on airfare and flight frequency can be obtained from probability function in airline choice model. Demand elasticity is analyzed respected to airfare and flight frequency is considered as inelastic. Sensitivity analysis is applied to determine passenger responsiveness according with each airline policies such decreasing airfare and increasing flight frequency. The suggested policy that can be increase share of low-cost carriers is to reduce airfare as it has higher effect to Thai Airways passenger (and other airlines passenger among low-cost carriers group) than increasing its flight frequency. Increasing flight frequency of Thai AirAsia, Nok Air or OneTwo-Go will take share from each other rather than taking from Thai Airways. |
| Year | 2005 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. TE-04-11 |
| Type | Thesis |
| School | School of Civil Engineering |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Transportation Engineering (TE) |
| Chairperson(s) | Hanaoka, Shinya; |
| Examination Committee(s) | Yordphol Tanaboriboon;Singha Chiamsiri; |
| Scholarship Donor(s) | Royal Thai Government Fellowship; |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 2005 |