IDEAS home Printed from https://ideas.repec.org/a/ids/ijavim/v2y2013i1-2p35-53.html
   My bibliography  Save this article

Domestic airline networks and passenger demand in Thailand after deregulation

Author

Listed:
  • Phimphorn Sowawattanakul
  • Winai Wongsurawat

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.

Suggested Citation

  • Phimphorn Sowawattanakul & Winai Wongsurawat, 2013. "Domestic airline networks and passenger demand in Thailand after deregulation," International Journal of Aviation Management, Inderscience Enterprises Ltd, vol. 2(1/2), pages 35-53.
    • Handle: RePEc:ids:ijavim:v:2:y:2013:i:1/2:p:35-53
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=53047
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Frédéric Dobruszkes, 2006. "An analysis of European low-cost airlines and their networks," ULB Institutional Repository 2013/95835, ULB -- Universite Libre de Bruxelles.
    2. Tsekeris, Theodore, 2009. "Dynamic analysis of air travel demand in competitive island markets," Journal of Air Transport Management, Elsevier, vol. 15(6), pages 267-273.
    3. Derudder, Ben & Witlox, Frank, 2009. "The impact of progressive liberalization on the spatiality of airline networks: a measurement framework based on the assessment of hierarchical differentiation," Journal of Transport Geography, Elsevier, vol. 17(4), pages 276-284.
    4. Brons, Martijn & Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2002. "Price elasticities of demand for passenger air travel: a meta-analysis," Journal of Air Transport Management, Elsevier, vol. 8(3), pages 165-175.
    5. Graham, Mark, 2009. "Different models in different spaces or liberalized optimizations? Competitive strategies among low-cost carriers," Journal of Transport Geography, Elsevier, vol. 17(4), pages 306-316.
    6. Burghouwt, Guillaume & de Wit, Jaap, 2005. "Temporal configurations of European airline networks," Journal of Air Transport Management, Elsevier, vol. 11(3), pages 185-198.
    7. Button, Kenneth, 2002. "Debunking some common myths about airport hubs," Journal of Air Transport Management, Elsevier, vol. 8(3), pages 177-188.
    8. Alderighi, Marco & Cento, Alessandro & Nijkamp, Peter & Rietveld, Piet, 2005. "Network competition—the coexistence of hub-and-spoke and point-to-point systems," Journal of Air Transport Management, Elsevier, vol. 11(5), pages 328-334.
    9. Gillen, David, 2005. "The Evolution of Networks with Changes in Industry Structure and Strategy: Connectivity, Hub-and-Spoke and Alliances," Research in Transportation Economics, Elsevier, vol. 13(1), pages 49-73, January.
    10. Alekseev, K.P.G. & Seixas, J.M., 2009. "A multivariate neural forecasting modeling for air transport – Preprocessed by decomposition: A Brazilian application," Journal of Air Transport Management, Elsevier, vol. 15(5), pages 212-216.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Suau-Sanchez, Pere & Burghouwt, Guillaume, 2011. "The geography of the Spanish airport system: spatial concentration and deconcentration patterns in seat capacity distribution, 2001–2008," Journal of Transport Geography, Elsevier, vol. 19(2), pages 244-254.
    2. Castillo-Manzano, José I. & López-Valpuesta, Lourdes & Pedregal, Diego J., 2012. "What role will hubs play in the LCC point-to-point connections era? The Spanish experience," Journal of Transport Geography, Elsevier, vol. 24(C), pages 262-270.
    3. Sismanidou, Athina & Tarradellas, Joan & Bel, Germà & Fageda, Xavier, 2013. "Estimating potential long-haul air passenger traffic in national networks containing two or more dominant cities," Journal of Transport Geography, Elsevier, vol. 26(C), pages 108-116.
    4. Dobruszkes, Frédéric, 2013. "The geography of European low-cost airline networks: a contemporary analysis," Journal of Transport Geography, Elsevier, vol. 28(C), pages 75-88.
    5. O'Connell, John F. & Avellana, Raquel Martinez & Warnock-Smith, David & Efthymiou, Marina, 2020. "Evaluating drivers of profitability for airlines in Latin America: A case study of Copa Airlines," Journal of Air Transport Management, Elsevier, vol. 84(C).
    6. Redondi, Renato & Birolini, Sebastian & Morlotti, Chiara & Paleari, Stefano, 2021. "Connectivity measures and passengers’ behavior: Comparing conventional connectivity models to predict itinerary market shares," Journal of Air Transport Management, Elsevier, vol. 90(C).
    7. Plakandaras, Vasilios & Papadimitriou, Theophilos & Gogas, Periklis, 2019. "Forecasting transportation demand for the U.S. market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 195-214.
    8. Koo, Tay T.R. & Lohmann, Gui, 2013. "The spatial effects of domestic aviation deregulation: a comparative study of Australian and Brazilian seat capacity, 1986–2010," Journal of Transport Geography, Elsevier, vol. 29(C), pages 52-62.
    9. John Francis O’Connell & David Connolly, 2017. "The strategic evolution of Aer Lingus from a full-service airline to a low-cost carrier and finally positioning itself into a value hybrid airline," Tourism Economics, , vol. 23(6), pages 1296-1320, September.
    10. Silva, Hugo E. & Verhoef, Erik T. & van den Berg, Vincent A.C., 2014. "Airline route structure competition and network policy," Transportation Research Part B: Methodological, Elsevier, vol. 67(C), pages 320-343.
    11. Pere Suau-Sanchez & Guillaume Burghouwt & Xavier Fageda, 2016. "Reinterpreting EU Air Transport Deregulation: A Disaggregated Analysis of the Spatial Distribution of Traffic in Europe, 1990–2009," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(1), pages 48-65, February.
    12. Frédéric Dobruszkes & Jean-Michel Decroly & Pere Suau-Sanchez, 2022. "The monthly rhythms of aviation: A global analysis of passenger air service seasonality," ULB Institutional Repository 2013/341140, ULB -- Universite Libre de Bruxelles.
    13. Dobruszkes, Frédéric & Lennert, Moritz & Van Hamme, Gilles, 2011. "An analysis of the determinants of air traffic volume for European metropolitan areas," Journal of Transport Geography, Elsevier, vol. 19(4), pages 755-762.
    14. Lin, Jen-Jia & Fu, Chin-Yao, 2014. "The opening of direct flights across the Taiwan Strait: the impact on the global role of Taiwan’s international airport," Journal of Transport Geography, Elsevier, vol. 39(C), pages 179-186.
    15. Beria, Paolo & Scholz, Aaron B., 2010. "Strategies and pitfalls in the infrastructure development of airports: A comparison of Milan Malpensa and Berlin Brandenburg International airports," Journal of Air Transport Management, Elsevier, vol. 16(2), pages 65-73.
    16. Hanson, Daniel & Toru Delibasi, Tuba & Gatti, Matteo & Cohen, Shamai, 2022. "How do changes in economic activity affect air passenger traffic? The use of state-dependent income elasticities to improve aviation forecasts," Journal of Air Transport Management, Elsevier, vol. 98(C).
    17. Allroggen, Florian & Wittman, Michael D. & Malina, Robert, 2015. "How air transport connects the world – A new metric of air connectivity and its evolution between 1990 and 2012," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 184-201.
    18. Gaggero, Alberto A. & Piazza, Giovanni, 2021. "Multilayer networks and route entry into the airline industry: Evidence from the U.S. domestic market," Research in Transportation Economics, Elsevier, vol. 90(C).
    19. Suau-Sanchez, Pere & Voltes-Dorta, Augusto & Rodríguez-Déniz, Héctor, 2015. "Regulatory airport classification in the US: The role of international markets," Transport Policy, Elsevier, vol. 37(C), pages 157-166.
    20. Gallet, Craig A. & Doucouliagos, Hristos, 2014. "The income elasticity of air travel: A meta-analysis," Annals of Tourism Research, Elsevier, vol. 49(C), pages 141-155.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijavim:v:2:y:2013:i:1/2:p:35-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=289 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.