Thailand is fast establishing itself as the hotbed of activity on the fledgling low-fare airline front in Asia, with at least three players getting into the market.
Privately owned Orient Thai Airlines was the first to do so, launching its domestic no-frills arm One-Two-Go at the beginning of December. One-Two-Go is now operating Boeing 757-200s on domestic services and has begun with flights between Bangkok and the northern Thai city of Chiang Mai. The carrier is anticipating rapid growth, with a further four 757s planned and the first of eight Boeing MD-82s arriving in March. Chief executive Udom Tantiprasongchai hopes that some of the MD-82s will be used to inaugurate international services to Myanmar and Malaysia.
The next launch is expected to come from Malaysia's AirAsia, which is establishing a domestic low-fare carrier in Thailand in partnership with Shin Corp. This Thai telecommunications conglomerate was founded by Thailand's wealthy prime minister, Thaksin Shinawatra, who for more than a year has been calling for the establishment of low-fare carriers in Thailand to help grow the air transport and tourism markets.
AirAsia says its planned Thai sister carrier will share the same name, employee uniforms and aircraft livery. Shin will have a controlling stake in the carrier, which will be based in Bangkok and operate Boeing 737-300s on lease from AirAsia in Malaysia, mainly on domestic routes such as to Phuket, Hat Yai, Chiang Mai and Chiang Rai.
The third start-up is expected around April, when Thai Airways International plans to launch its low-fare carrier, Sky Asia. Thai has said it wants to have only a minority holding in the new airline, with the majority owned by partners from within Thailand and abroad.
Thai is reportedly in talks with three foreign airlines, including Virgin Blue, in the hope that one will become a shareholder. Thai is also reportedly speaking with four potential local partners, namely Orient Thai and other small private carriers Air Andaman, Phuket Air and PB Air. Thai has said Sky Asia will start with domestic services and then look at international routes within the Asia-Pacific region.
Source: Airline Business
