Thailand's Transport Ministry has summoned Thai Airways to explain its agreement with Tiger Airways to jointly launch LCC, Thai Tiger Airways (Bangkok Post, 07-Sep-2010). Thai’s senior executives will answer questions from the ministry on 15-Sep-2010. The ministry claims the carrier is yet to clarify some of its issues of concern. Transport Minister, Sohpon Zarum, has insisted Thai provide full details of the JV and has stated that if the deal is found not useful or lawful, it will be stopped. The move comes after the ministry received criticism for the deal from a number of former senior executives of Thai and Deputy Permanent Secretary for Transport, Chaisak Angsuwan.
Thai Transport Ministry summons Thai Airways to explain LCC JV
You may also be interested in the following articles...
Thai Airways SWOT: opportunities for growth, but challenges as competition further intensifies
Thai Airways is approaching a critical juncture as it completes a restructuring and seeks to resume growth. Its home market offers opportunities and an envious growth rate, but intensifying competition creates challenges.
Thai Airways is sandwiched between rapidly expanding low cost airlines and ambitious Gulf airlines. Its multi-brand strategy has so far proven to be a less than sufficient response.
In this SWOT analysis CAPA examines the Thai Airways Group’s strengths, weaknesses, opportunities and challenges.
Southeast Asia-US market Part 3: new nonstops need to overcome stiff one-stop FSC & LCC competition
Southeast Asian airlines are seeking to capture a larger share of the Southeast Asia-US market over the next few years as they launch new flights to the US. Three of the region’s flag carriers and at least one long haul LCC are planning to launch flights to the US, intensifying competition in an already fiercely competitive market.
Southeast Asian airlines currently account for less than a 20% share of the total Southeast Asia-US market. Philippine Airlines and Singapore Airlines are the only significant players in this market and are aiming to increase their share as they add new nonstop routes. Garuda Indonesia, Thai Airways and Vietnam Airlines are also keen to become significant players as they launch flights to the US, replacing their now limited offline products.
However, market share gains will likely come at the expense of yields and profitability as competition with North Asian airlines – and to some extent US and Gulf carriers – intensifies. North Asian airlines now account for more than 50% of bookings in the Southeast Asia-US market and have increased their reliance on Southeast Asian connections as they have added US capacity, resulting in very competitive fares.