Domestic airline networks and passenger demand in Thailand after deregulation

摘要

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.