AirAsia and Lion Air rivalry intensifies as Thai Lion rapidly expands

Asia's newest low-cost carrier, Thai Lion Air, is planning further expansion in early 2014 in Thailand's increasingly competitive domestic and international markets. The expansion will provide new competition for Thai AirAsia, leading to more overlap between the AirAsia and Lion groups.

All of Thai Lion's current and planned routes are AirAsia strongholds. Thai Lion has already disrupted the three routes it currently operates by bringing down fares.

The shake-up will be extended to several other routes in 2014 as Thai Lion quickly expands its fleet from two to 10 aircraft. But Thai AirAsia, which also plans to add eight aircraft in 2014, will remain a much larger carrier and is well positioned to respond to the challenge as it has a stronger and more established brand.