Bangkok Airways outlook brightens as expansion at Samui Airport begins

Bangkok Airways is pursuing expansion at Samui Airport in 2015, using some of the additional slots made available after Thai authorities agreed to raise the cap on movements by almost 40%. The expansion should result in the resumption of passenger growth at Samui, which recorded a 2% drop in passenger numbers in 2014.

The expansion should enable Bangkok Airways to increase the Samui portion of passengers in its overall network, which has been declining in recent years as the regional full-service carrier has pursued rapid expansion in the more competitive Bangkok market. The higher reliance on Samui should improve the airline's outlook for 2015 as its Samui routes are higher yielding than average due to the lack of competition.

Bangkok Airways owns and operates Samui airport, which gives it a huge competitive advantage in one of Thailand's largest and fastest growing leisure markets. Bangkok Airways was the most profitable airline in Thailand in 2014 although it was also impacted by the challenging market conditions.