One-Two-Go

LCCs losing domestic market share in Thailand

Thailand is an extremely challenging, yet potentially lucrative domestic market for LCCs, which have only emerged in the country in the past five years.

Nok Air back in the black in 4Q08 after extensive restructuring effort

Nok Air reported an unaudited THB82 million (USD2.4 million) profit in the three months ended 31-Dec-08, benefiting from the airline’s restructuring programme and associated deep capacity cuts, and a reduction in fuel prices.

Thai LCCs - Grounded One-Two-Go to lay off 50% of workforce

One-Two-Go Chairman, Udom Tantiprasongchai, stated the grounded airline would lay off 400-500 employees, or 50% of its workforce. The airline’s operating license was suspended for 30 days on 22-Jul-08, due to safety concerns, with the airline undertaking a financial restructure during the period.

One-Two-Go to suspend operations for eight-week period; undertaking financial restructure

One-Two-Go, Thailand’s first LCC (albeit not with a classic model), announced (19-Jul-08) plans to suspend operations for eight weeks (22-Jul-08 to 15-Sep-08), to allow time for financial restructuring. Following the announcement, the Thai Transport Ministry ordered One-Two-Go to suspend services for 30 days, due to safety concerns.

Asia Pacific airline capacity spurs new airline entry, offshore bases

A surge in capacity for Asia Pacific and Middle East airlines

will result in one of the busiest years in new airline activity in the region

this decade. Several carriers are also preparing to establish offshore hubs

through cross-border JVs, as well as through the utilisation of increasing rights

available under more liberal air services agreements. Extra domestic hubs are

also planned by some carriers.

Asian LCC international brush fire

A wave of international service announcements confirms overseas

expansion is very much on the agenda for Asia’s burgeoning LCC segment.

Several LCCs are seeking to diversify their traffic bases and/or to boost aircraft

utilisation rates. But all would be in search of higher yields that international

services can offer, although their encroachment into these markets will have

a depressing effect on fares, which would be of concern to established carriers.