The impact of low cost airlines to airline industry: An experience of Thailand

The deregulation of airline industry of Thailand has allowed three low cost airlines (LCAs) to operate in domestic routes. This study explored the impact of LCAs to three stakeholders in airline industry, full-service airlines, airports and passengers. The main question was who gained or lost from L...

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Main Author: Komsan Suriya
Format: Journal
Published: 2018
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http://cmuir.cmu.ac.th/jspui/handle/6653943832/49040
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Institution: Chiang Mai University
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spelling th-cmuir.6653943832-490402018-08-16T02:08:51Z The impact of low cost airlines to airline industry: An experience of Thailand Komsan Suriya Economics, Econometrics and Finance The deregulation of airline industry of Thailand has allowed three low cost airlines (LCAs) to operate in domestic routes. This study explored the impact of LCAs to three stakeholders in airline industry, full-service airlines, airports and passengers. The main question was who gained or lost from LCAs. In answering the question, the demand for airline industry was estimated. The change in revenue of airlines and airports were considered as private benefits. The change in consumer's surplus, amount of money that passengers were willing to pay for the airfare but did not pay, was regarded as the social benefit. Comparison of benefits between the expansion and recession periods of the airline industry were examined. Moreover, the change in traveling pattern from Thailand to Laos was also investigated. This study proved that, in the expansion period, LCAs were not harmful to full-service airlines. In turn, they were important to the growth of the industry. However in the recession period, LCAs were growing at the expense of full-service airlines. For passengers, consumer's surplus was increased in the expansion period but decreased in the recession period due to higher airfare. A irports gained in both expansion and recession period. LCAs encouraged tourists to change their traveling pattern from Thailand to Laos via an indirect route, Bangkok - Udorn Thani - Nongkai - the Friendship Bridge instead of the direct route from Bangkok to Vientiane. 2018-08-16T02:08:51Z 2018-08-16T02:08:51Z 2009-01-01 Journal 01271962 2-s2.0-79955601446 https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=79955601446&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/49040
institution Chiang Mai University
building Chiang Mai University Library
country Thailand
collection CMU Intellectual Repository
topic Economics, Econometrics and Finance
spellingShingle Economics, Econometrics and Finance
Komsan Suriya
The impact of low cost airlines to airline industry: An experience of Thailand
description The deregulation of airline industry of Thailand has allowed three low cost airlines (LCAs) to operate in domestic routes. This study explored the impact of LCAs to three stakeholders in airline industry, full-service airlines, airports and passengers. The main question was who gained or lost from LCAs. In answering the question, the demand for airline industry was estimated. The change in revenue of airlines and airports were considered as private benefits. The change in consumer's surplus, amount of money that passengers were willing to pay for the airfare but did not pay, was regarded as the social benefit. Comparison of benefits between the expansion and recession periods of the airline industry were examined. Moreover, the change in traveling pattern from Thailand to Laos was also investigated. This study proved that, in the expansion period, LCAs were not harmful to full-service airlines. In turn, they were important to the growth of the industry. However in the recession period, LCAs were growing at the expense of full-service airlines. For passengers, consumer's surplus was increased in the expansion period but decreased in the recession period due to higher airfare. A irports gained in both expansion and recession period. LCAs encouraged tourists to change their traveling pattern from Thailand to Laos via an indirect route, Bangkok - Udorn Thani - Nongkai - the Friendship Bridge instead of the direct route from Bangkok to Vientiane.
format Journal
author Komsan Suriya
author_facet Komsan Suriya
author_sort Komsan Suriya
title The impact of low cost airlines to airline industry: An experience of Thailand
title_short The impact of low cost airlines to airline industry: An experience of Thailand
title_full The impact of low cost airlines to airline industry: An experience of Thailand
title_fullStr The impact of low cost airlines to airline industry: An experience of Thailand
title_full_unstemmed The impact of low cost airlines to airline industry: An experience of Thailand
title_sort impact of low cost airlines to airline industry: an experience of thailand
publishDate 2018
url https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=79955601446&origin=inward
http://cmuir.cmu.ac.th/jspui/handle/6653943832/49040
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