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Thai Lion Air domestic expansion continues, pressuring Thai AirAsia and Nok Air

14 Feb 2015 22:54:31


Competition in Thailand's domestic market will intensify further in 2015 as Thai Lion Air pursues further expansion. Thai Lion has quickly established a significant presence on a handful of trunk routes and will likely be competing on all the main domestic routes of Nok Air and Thai AirAsia by the end of 2015.

The Lion Group affiliate launched services at the end of 2013 and already accounts for 17% of domestic LCC seat capacity in Thailand. Thai Lion could potentially capture a 25% share by the end of 2015 as it takes delivery of several additional 737s.

Seat capacity and passenger numbers in Thailand's domestic LCC sector increased by over 30% in 2014. But the growth has come at the expense of yields and profitability. More rapid domestic growth is expected in 2015 and the intense competition could make it difficult for the market to return to profitability even with the reduction in oil prices.

Read full story: centreforaviation.com

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