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 Economic Community (AEC), involving
liberalisation in the services sector that will eventually spur greater
regional air transport, KResearch says.
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.
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