The world economy is expected to grow by 3.3% in 2014, the same growth rate as in
2013. The International Air Transport Association (IATA) forecasts the number of air
passengers will reach 3.3 billion in 2014. Revenue passenger kilometers (RPK) will
rise by 5.9% in 2014, almost the same rate of increase as in 2013. The IATA expects
the volume of air shipments to reach 52 million tonnes in 2014, as shown by its
forecast of a 3.1% rise in freight tonne kilometers (FTK).
In the first 10 months of 2014, the number of air passengers in Thailand did not
grow. The worldwide economy was weak and domestic political turmoil kept tourists
away. The Thai economy grew slowly in the first three quarters of 2014, rising by
just 0.2% year-on-year (y-o-y). The political unrest in early 2014 also cut the number
of tourist arrivals by 8.7% y-o-y during January to October. However, history shows
that the Thai tourism industry recovers quickly after a crisis.
Competition in the airline industry in Thailand is intense. Thailand is a popular travel
destination, serviced by more than 500 airlines. There are about 30 low-cost carriers
(LCCs) serving in Thailand. About 39% of total air passengers in the first 10 months
of 2014 took LCCs. The main airlines serving in Thailand are Thai Airways, Thai Air
Asia, and Nok Air, which are all Thai airlines. The number of passengers flying on
LCCs is growing at a faster rate than the growth in the number of all air passengers.
Passengers on LCCs grew by 29% in 2013 and 23.5% y-o-y in the first 10 months of
2014. Premium airlines face a significant challenge as they try to compete with the
LCCs
The world economy is expected to grow by 3.3% in 2014, the same growth rate as in2013. The International Air Transport Association (IATA) forecasts the number of airpassengers will reach 3.3 billion in 2014. Revenue passenger kilometers (RPK) willrise by 5.9% in 2014, almost the same rate of increase as in 2013. The IATA expectsthe volume of air shipments to reach 52 million tonnes in 2014, as shown by itsforecast of a 3.1% rise in freight tonne kilometers (FTK).In the first 10 months of 2014, the number of air passengers in Thailand did notgrow. The worldwide economy was weak and domestic political turmoil kept touristsaway. The Thai economy grew slowly in the first three quarters of 2014, rising byjust 0.2% year-on-year (y-o-y). The political unrest in early 2014 also cut the numberof tourist arrivals by 8.7% y-o-y during January to October. However, history showsthat the Thai tourism industry recovers quickly after a crisis.Competition in the airline industry in Thailand is intense. Thailand is a popular traveldestination, serviced by more than 500 airlines. There are about 30 low-cost carriers(LCCs) serving in Thailand. About 39% of total air passengers in the first 10 monthsof 2014 took LCCs. The main airlines serving in Thailand are Thai Airways, Thai AirAsia, and Nok Air, which are all Thai airlines. The number of passengers flying onLCCs is growing at a faster rate than the growth in the number of all air passengers.Passengers on LCCs grew by 29% in 2013 and 23.5% y-o-y in the first 10 months of2014. Premium airlines face a significant challenge as they try to compete with theLCCs
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