| Author | Persad, Rishinarayan Maharaj |
| Call Number | AIT RSPR no.SM-04-30 |
| Subject(s) | Airlines--Thailand
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master
of Business Administration. School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ;|vno. SM-04-30 |
| Abstract | Although the low cost airline model has swiftly emerged in the South East Asian region,
following years of success in the United States and the European Union, little
investigation has been done to assess the feasibility of this model in the Thai aviation
market. This research paper aims to analyze and identify to key success factors for these
low cost can-iers in Thailand.
An in-depth analysis was conducted of low cost carriers in the United States and Europe
and their established key success factors. It was found that the US and EU low cost
airline models were ve1y similar and that they were able to attain significant cost as well
as process advantages throughout the value chain compared to full service airlines. It was
additionally ascertained that because route competition between low cost ca1Tiers
consistently led to revenue diminishing price wars, such competition has steadily
reduced.
Interviews were conducted with key Thai players in order to understand the domestic
aviation market and to isolate particular strnctural and competitive deviations within the
domestic industry. The key success factors for Thai-based low cost airlines correspond
generally with their American and European counterparts. Key differences lie in the lack
of secondary airports and online purchasing habits, both key cost cutting advantages
available to American and European low cost CatTiers.
Because of limited route availability, swiftly intensified competition in the low cost
market is expected to lead to first domestic and later regional industry consolidation.
Recommendations for government decision makers included the sustaining of
deregulated industty and continuation of social agenda to promote Thailand as an
international tourist and commercial hub. Recommendations for low cost airline decision
makers include the development of key cost and process advantages, thee development of
novel distribution strategies, and the attainment of critical mass to retain domestic and
regional dominance |
| Year | 2004 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-04-30 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S. |
| Examination Committee(s) | Sununta Siengthai ;Dimmitt, Nicolas J. |
| Degree | Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 2004 |