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...
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
2009
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| Online Access: | http://journalarticle.ukm.my/7862/ http://journalarticle.ukm.my/7862/1/1448-2715-1-SM.pdf |
| _version_ | 1848811616135544832 |
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| author | Komsan Suriya, |
| author_facet | Komsan Suriya, |
| author_sort | Komsan Suriya, |
| building | UKM Institutional Repository |
| collection | Online Access |
| 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 o f the airline industry were examined.
Moreover: the change in traveling pattern ffom Thailand to Laos was also investigated. This study proved that, in the expansion period, LCAs were not harmful to fill-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. Airports 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. |
| first_indexed | 2025-11-14T23:49:14Z |
| format | Article |
| id | oai:generic.eprints.org:7862 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T23:49:14Z |
| publishDate | 2009 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:78622016-12-14T06:45:28Z http://journalarticle.ukm.my/7862/ The impact of low cost airlines to airline industry: an experience of Thailand Komsan Suriya, 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 o f the airline industry were examined. Moreover: the change in traveling pattern ffom Thailand to Laos was also investigated. This study proved that, in the expansion period, LCAs were not harmful to fill-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. Airports 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. Penerbit Universiti Kebangsaan Malaysia 2009 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7862/1/1448-2715-1-SM.pdf Komsan Suriya, (2009) The impact of low cost airlines to airline industry: an experience of Thailand. Jurnal Ekonomi Malaysia, 43 . pp. 3-25. ISSN 0127-1962 http://www.ukm.my/fep/jem/ |
| spellingShingle | Komsan Suriya, The impact of low cost airlines to airline industry: an experience of Thailand |
| title | 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_short | 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 |
| url | http://journalarticle.ukm.my/7862/ http://journalarticle.ukm.my/7862/ http://journalarticle.ukm.my/7862/1/1448-2715-1-SM.pdf |