Bangkok Airways IPO: proving there is still room for an independent full-service short-haul airline

Bangkok Airways is an oddity - a successful independent full-service short-haul carrier that has been able to grow despite competing in a market dominated by LCCs and large aligned flag carriers. Bangkok Airways now seeks another oddity - an initial public offering in a market that in recent years has only seen LCCs and occasional flag carriers go public. The remainder of 2013 will see four Southeast Asian carriers attempt IPOs: three LCCs in AirAsia X, Indonesia AirAsia and Nok Air; and low-profile Bangkok Airways.

If successful with its upcoming listing on the Stock Exchange of Thailand, Bangkok Airways will have the cash to accelerate network and fleet expansion. The carrier, which currently operates 23 aircraft, is well positioned to expand despite facing intensifying competition in most of its markets.

Bangkok Airways' biggest strength is a wide and growing portfolio of partnerships, which gives it access to high-yield passengers. Several of its partners are growing rapidly at the carrier's main hub, Bangkok Suvarnabhumi, and need more regional feed.