17 The Impact of Low-Cost Carriers Entry and Passengers Airline Choice in Thailand Asian Institute of Technology 1
Introduction 2003 2004 [Low Cost Carriers, LCC] (Secondary) LCC 2
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(LCC) Low-cost carriers, LCC (or airlines) Budget carriers (or airlines) No-frills carriers (or airlines) Full service airlines, FSA (or carriers) Network carriers Legacy carriers, Mega carriers 5
[ ] (Doganis, 2001) Fares Low, Simple Route Point-to-point, Short distance Ticketing Direct sales, Internet, Ticketless Service Single-class, No seat assignment No food & drink (by charge) Frequency High Punctually Good Aircraft Single type (Boeing 737: Capacity 130-180) High utilization Airports Secondary, Uncongested Staff Competitive wages, High productivity 6
Skymark Airlines 1998.9 2005.4 / JAL Air Do 1998.7 2002 ANA Skynet Asia Airways 2002.8 Star Flyer 2006 3 7
North America 22 airlines: Southwest airlines, jetblue Europe 63 airlines: Ryanair, easyjet Asia and Oceania 20 airlines Southeast Asia 9 airlines Cebu Pacific, AirAsia, Lion Air, ValuAir, Jetstar Asia, Tiger Airways, Thai Air Asia, Nok Air, One Two Go LowCostAirlines.org 8
Ryanair: Stansted www.ryanair.com 9
20 15 10 5 Stansted Airport in London Hub of Ryanair, easyjet [ ] 23% (2.2 / ) 0 97 98 99 00 01 02 03 [yr] & EU 10
econdary irport Ryanair Stansted & Luton Prestwick Charleroi 1. No Congestion 2. Discount Charge Hahn Bergamo Ciampino www.ryanair.com 11
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Airport Owners AOT (Airports of Thailand Public Co., Ltd.) Bangkok, Phuket, Chiang Mai, Had Yai, Chiang Rai 2004 3 DCA (Department of Civil Aviation) Bangkok airways Samui 14
900km AOT Chiang Rai Chiang Mai 1,600km Bangkok 51 km 2 ( 1.4 ) Phuket Had Yai 15
Entry Deregulation 1997 1998-2000 2000.9 Fare Deregulation 2001 2002-2003 2003.12 Ownership Deregulation 2003.9 30% 49% 16
LCC 1. One Two Go 2003 12 2. Thai AirAsia ( ) 2004 1 3. Nokair 2004 7 17
One Two Go [OTG] Orient Thai Airlines Orient Thai Airlines 1996 B757 http://www.onetwo-go.com/ 18
Thai Air Asia [TAA] Air Asia SHIN Corporation Air Asia 49% Southwest Airlines, Ryanair http://www.airasia.com/ 19
Nok Air [NKA] 39% Sky Asia http://www.nokair.com/ 20
Nakhon Ratchasima Thai Air Asia 3 LCC 2003.12 2004.10 BKK AOT DCA Chiang Rai Chiang Mai) Udon Thani Khon Kaen Ubon Ratchathani Phitsanulok Phuket Had Yai 21
Route and Frequency 2005 4 From/to Bangkok Thai Thai One Two Nok Air Airways Air Asia Go Phuket 8.5 3 2 0.5 Chiang Mai 10 2 5 2 Hat Yai 4 2.5 3 1 Chiang Rai 4 2-1 Khon Kaen 3 1 - - Udon Thani 3 1 3 - Ubon Ratchathani 3 1 - - Phitsanulok 1-2 - [ ] 22
Change in Route Demand [ ] 23
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Passenger Airline Choice Outline : LCC : 2005 1/26 2/3 (9 ) : 2,324 Survey in BKK airport : 25
LCC 5% 1. 2. 10 20 60 3. 4. 2 10 [ 2.8 ] 5. 26
Chi-Squared Test LCC LCC 1. 2. 20 20 3. 4. 10 2-5. 27
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Summary of Satisfaction Survey 1. LCC 2. 3. LCC Nok Air 4. One Two Go 5. Thai Air Asia 6. LCC LCC Nok Air Thai Air Asia 31
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Airline Choice Model ML Thai Airways Thai Air Asia Nok Air One Two Go Thai Airways Thai Air Asia NL LCC Nok Air One Two Go etc... 33
Calibration Results MNL = a [ ] b [ ] c [ ] d [ ] e [ ] Thai Air Asia 34
Thai Airways Elasticity 1% Thai Air Asia Nok Air One Two Go Thai Airways -0.484 0.386 0.305 0.337 Thai Air Asia 0.141-0.635 0.259 0.291 Nok Air 0.147 0.370-0.700 0.368 One Two Go 0.116 0.305 0.272-0.762 35
Conclusion 1. LCC 2. 3. 36
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