"Open skies" policy will benefit consumers, but hurt airlines
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Consumers stand to benefit the most from the "Open Skies" policy, which will kick off under the Asean Economic Community framework in 2015, said Siam Commercial Bank's research.
The SCB's Economic Intelligence Centre said that with a greater number of players, new promotions are expected while airlines are also expected to enhance their safety issues for their good images.
However, airlines will face greater competition, requiring them to cut unnecessary costs in maintaining the competitiveness.
Under the policy, by the end of next year, airlines based in Asean can fly freely across the region to any airport and as often as they want.
Thai Airways International is now the biggest player in the domestic market, with a share of 31.6 per cent. This is followed by Thai AirAsia, 23.2 per cent; Bangkok Airways, 22.5 per cent; and Nok Air, 22.7 per cent. There are several small players like Kan Air, which this year unveiled low-cost Vietjet Air Thailand in cooperation with Vietjet Air.
Airports of Thailand estimated that in 2015, Suvarnabhumi Airport, Thailand's main gateway, will accommodate over 56 million passengers and over 300,000 flights.
