Title: Domestic airline networks and passenger demand in Thailand after deregulation

Authors: Phimphorn Sowawattanakul; Winai Wongsurawat

Addresses: School of Management, Asian Institute of Technology, Klong Luang, Pathumthani, 12120, Thailand ' College of Management, Mahidol University, Phayathai, Bangkok, 10400, Thailand

Abstract: Major transformations have occurred to the domestic airline industry in Thailand since deregulation in the late 1990s. New entry from low-cost carriers significantly eroded the market share of the national flag carrier, Thai Airways. Using panel data spanning years 1996 to 2009, we study how different types of airlines have reconfigured their networks during this period. Results show that the dominant full-service carrier has moved toward a hub-and-spoke model, while smaller players have adopted additional point-to-point network features. We also investigate the rise and decline of various regional airports. Our analysis reveals that airports that start-up airlines choose to enter often enjoy significant surges in total passengers. Airports located in populous provinces with robust economic growth after deregulation also tend to be more successful.

Keywords: airline networks; passenger demand; Thailand; domestic airlines; aviation deregulation; regional airports.

DOI: 10.1504/IJAM.2013.053047

International Journal of Aviation Management, 2013 Vol.2 No.1/2, pp.35 - 53

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 03 Apr 2013 *

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