DOMESTIC AIRLINE NETWORKS AND PASSENGER DEMAND IN THAILAND

摘要

Deregulation has significantly transformed the domestic airline industry inThailand by encouraging new entry from low cost carriers and eroding the market shareof 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 in response tothe increasing competitive pressure. Results show that the dominant full service carrierhas moved toward a more concentrated hub and spoke model, while a smaller playershave adopted additional point to point network features. We also investigate the rise ordecline of various regional airports. Our analysis reveals that airports that startup airlineschoose to enter often enjoy significant surges in total passengers. Airports located inpopulous provinces with robust economic growth after deregulation also tend to be moresuccessful.