Bangkok Airways plans domestic expansion as competition intensifies with launch of Thai Lion

Bangkok Airways is planning relatively ambitious fleet and network expansion over the next year as the independent full-service carrier looks to cement its position in the increasingly competitive Thai market.

The carrier plans to add five A320 family aircraft by the end of 2014 and is close to placing orders for new-generation turboprop and narrowbody aircraft. The fleet renewal and expansion could be partially funded by an initial public offering (IPO), which Bangkok Airways now aims to complete by the end of 2013 following a six-month delay.

The upcoming launch of three new low-cost carriers in Thailand, starting with Thai Lion on 04-Dec-2013, provides a potentially challenging backdrop to an IPO. But Bangkok Airways, which has been profitable for four consecutive years, is confident in the long-term viability of its boutique carrier niche. The carrier's outlook remains relatively bright, boosted by an expanding portfolio of partnerships which will continue to provide high-yielding passengers that keep it largely out of the crossfire between LCCs.