Aviation still growing, KResearch finds
The Thai aviation business will continue to grow in the fourth quarter thanks to new flights and routes to meet growing demand at home and abroad, according to findings by Kasikorn Research. It will also be supported by ongoing integration under the Asean
Aviation business turnover this year will grow 11.2 per cent to Bt140 billion, beating the Bt126.5 billion recorded in 2011, on many factors. Among them are increased investments within Asean and improved air-transport infrastructure, resulting in wider route coverage and greater capacity.
In addition, anticipated growth in tourist arrivals within Asean should help bolster business this year. However, this industry will encounter several near-term risks, including volatile jet-fuel prices and the global economic slowdown, the research firm predicts.
As well, a major long-term impediment exists in the AEC liberalisation of logistics services and open-sky protocols per the Asean Single Aviation Market Agreement. Although these agreements offer opportunities for Thai air services to expand within the bloc, they may increase competition, too, as non-Asean airlines will be permitted to operate in the region more freely, not to mention ongoing attempts by neighbouring countries to penetrate the regional airline industry.
Given this, Thai public- and private-sector agencies must accelerate adjustments to meet heightened competition ahead of the full implementation of the AEC in 2015, KResearch says. The public sector may need quickly to improve airport infrastructure, for example runways, passenger terminals and other service facilities, along with enhanced efficiency and quality in airport service systems, as this would help improve the Kingdom’s capacity to handle more flights, passengers and cargo.
Most important, authorities will need to extend Thailand’s links to Asean states to induce more international airlines to use this country as a regional hub. If that infrastructure is quickly completed and is adequate to meet future demand, it will help enhance the role of the Thai airline industry and thus would greatly help Thai international air transport and related businesses seeking to reap benefits from AEC integration.
Many airlines expect to enjoy higher growth to serve greater demand of individuals seeking investment opportunities to cash in on the AEC.
Bangkok Airways expects to increase its sales by 20 per cent to Bt13 billion this year. The company will open a new Bangkok-Vientiane route by the end of the year, and will next year increase its existing Bangkok-Yangon route to three times a day.
The airline is studying the feasibility of opening new routes to Mandalay and Nay Pyi Daw in Myanmar, as well as the launch of a new low-cost airline to serve routes with flying periods of three to four hours.
Thai AirAsia meanwhile will expand its service to China with the launch of a new daily route between Don Mueang and Wuhan starting from October 19.
