Orient Thai Airlines
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Location of Orient Thai Airlines main hub (Bangkok Suvarnabhumi International Airport)
LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Orient Thai Airlines fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.
63 total articles
4 total articles
Lion Air has embarked on the first phase of an aggressive international strategy which is starting to see the fast-growing airline group diversify away from its roots in the Indonesian domestic market. The Mar-2013 launch of an affiliate in Malaysia, Malindo Air, is expected to be followed by joint ventures in other Asian markets, starting with Thailand. A low cost, but hybrid operator, Lion over time will also look to grow its now tiny international network from its home market of Indonesia.
Internationalisation with a focus on Southeast Asia is the right strategy for Lion as it cannot continue to rely almost entirely on the Indonesian domestic market. Indonesia has emerged as one of the world’s largest and fastest growing emerging markets. But with nearly 600 aircraft on order Lion needs to hedge its bets and not limit its growth to Indonesia, particularly given the threat that growing infrastructure constraints could lead to slower growth over the medium to long-term.
Lion, however, faces huge challenges as it starts to dip its paw in other markets. Establishing a strong brand and distribution network outside Indonesia will be Lion's biggest challenge. Competition in any new market Lion enters will be fierce as it will not have the first low cost mover advantage it had in Indonesia. Pan-Asian low cost airline groups like AirAsia, Jetstar and, to a lesser extent, Tiger, already occupy the high ground.
Thai Airways’ new regional unit, Thai Smile, will initially compete primarily against Thai AirAsia on domestic routes when it launches services at the middle of next year. While Thai Smile will offer some frills and connect with Thai Airways and other Star Alliance carriers, the unit’s lower cost base is designed to compete more effectively against Thai’s largest local rival.
The Thai Airways board late last month approved the brand name Thai Smile, replacing Thai Wing, which has been the provisional name since the board initially approved in May-2011 the creation of a new regional airline unit. Thai Smile is now aiming to launch domestic services in Jul-2012 from a base at Bangkok Suvarnabhumi, following a hybrid model that is part LCC and part full-service regional carrier.
Thai Airways delays launch of Thai Tiger Airways again; Thai AirAsia preparing strategies to compete
Thai Airways has had a number of challenges in its plans to establish new LCC start-up, Thai Tiger Airways, under a JV with Singapore’s Tiger Airways. In its latest set back, the carrier has been forced to postpone the launch date of the LCC from Mar-2011 to late May-2011. However, the setbacks have not comforted competitors, with Thai AirAsia stating it is developing strategies to effectively compete with the new LCC.
Thai aviation is running hot again despite the affects of social and political disruptions and likely to report one of its best years in 2010 on the back of regional economic improvement and growing tourism.
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