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Air Asia X Plans To Set Up Bangkok Base  
User currently offlineLAXintl From United States of America, joined May 2000, 24325 posts, RR: 47
Posted (1 year 3 weeks 2 days 7 hours ago) and read 7488 times:

The low cost long-haul division of Air Asia says it seeks to create base in Bangkok.

Pending approvals Air Asia X seeks to base a pair of A330 aircraft in the Thai capital effective this October through its Thai AirAsia subsidiary.

Initial routes would include heavy leisure demand Far East markets such as Japan and South Korea from the more city center Bangkok Don Mueang airport.


I can certainly see the long-term prospects of a Bangkok base as being extremely strong for Asia X considering the how popular and large the market is from both around Asia and further afield to Europe and Middle East also.

Could be some unwanted added headaches for TG.


Story:
http://www.air-journal.fr/2013-03-23...ait-une-base-a-bangkok-569928.html

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From the desert to the sea, to all of Southern California
23 replies: All unread, jump to last
 
User currently offlinelightsaber From United States of America, joined Jan 2005, 12420 posts, RR: 100
Reply 1, posted (1 year 3 weeks 2 days 6 hours ago) and read 7372 times:
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I'm surprised it took them this long.  


Which Bangkok airport?

Lightsaber



I've posted how many times?!?
User currently offlinespinkid From United States of America, joined Jul 2001, 1070 posts, RR: 0
Reply 2, posted (1 year 3 weeks 2 days 6 hours ago) and read 7292 times:

Quoting lightsaber (Reply 1):
Which Bangkok airport?

The original post states Don Muang.

I'm a little surprised they chose Don Muang. I thought after the flooding most operations had moved to BKK and had not moved back to Don Muang.

I flew from Don Muang once. It reminded me a little bit of the airport in Stephen King's the Langoliers since it was so deserted.


User currently offlineLAXintl From United States of America, joined May 2000, 24325 posts, RR: 47
Reply 3, posted (1 year 3 weeks 2 days 6 hours ago) and read 7239 times:

Don Muang airport is operational.

Its home the the LCCs - Air Asia, Nok Air, One-Two-Go, etc.



From the desert to the sea, to all of Southern California
User currently offlineTC957 From UK - England, joined May 2012, 699 posts, RR: 0
Reply 4, posted (1 year 3 weeks 2 days 5 hours ago) and read 7098 times:

Air Asia X could operate with the latest A333IGW's to Europe from BKK if they wished, but I guess DY will steal a march on them with their intended forthcoming services to BKK. Hopefully that'll bring fares down a bit - was searching for July dates for clients today and fares were over £900 return on TG / BR direct.

User currently offlineBen175 From Australia, joined Jul 2008, 656 posts, RR: 0
Reply 5, posted (1 year 3 weeks 2 days 3 hours ago) and read 6926 times:

I'd love to see D7 operate BKK-PER/MEL and SYD. They've really opened up Kuala Lumpur as a destination down under.

User currently offlinefiscal From Australia, joined Oct 2009, 315 posts, RR: 0
Reply 6, posted (1 year 3 weeks 2 days 3 hours ago) and read 6920 times:

Quoting spinkid (Reply 2):
I flew from Don Muang once. It reminded me a little bit of the airport in Stephen King's the Langoliers since it was so deserted.

Been a long time since I saw that movie. Spooky....


User currently offlineMAN2SIN2BKK From Thailand, joined Feb 2009, 220 posts, RR: 0
Reply 7, posted (1 year 3 weeks 2 days 1 hour ago) and read 6753 times:

Quoting spinkid (Reply 2):
I'm a little surprised they chose Don Muang. I thought after the flooding most operations had moved to BKK and had not moved back to Don Muang.

Don Mueang as its now called is the obvious choice given the size of the Air Asia operation there now


User currently offlineLAXintl From United States of America, joined May 2000, 24325 posts, RR: 47
Reply 8, posted (1 year 3 weeks 2 days 1 hour ago) and read 6749 times:

Yes I wonder in the long run if they will reattempt Europe this time from Bangkok?

Europe demand to Thailand is certainly much larger then from Malaysia where they tried previously.
There certainly could be negative pressure on legacy airlines in the market by these guys lowering fares even more.

Also initial link to Japan and Korea is a good call. Those are big markets also in hands of mostly legacy airlines today, and ironically the most profitable for TG per its CEO. (story inside the link below)

Thai - Struggles To Find A380 Role (by LAXintl Oct 15 2012 in Civil Aviation)

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From the desert to the sea, to all of Southern California
User currently offlinechristao17 From Thailand, joined Apr 2005, 934 posts, RR: 8
Reply 9, posted (1 year 3 weeks 2 days ago) and read 6667 times:

I think the competition to Europe and the Middle East would be must stronger, thanks to EK having 5 flights a day to Dubai and the other Middle East carriers also offering high frequency and lots of (relatively cheap) connecting flights into BKK.

May be better money making opportunities in East Asia, especially with the rapidly growing Chinese middle class. There are lots of flights between Korea and BKK but still loads of a demand. Japan is another country that seems underserved.



Keeping the "civil" in civil aviation...
User currently offlinebehramjee From Canada, joined Aug 2003, 4716 posts, RR: 44
Reply 10, posted (1 year 3 weeks 1 day 23 hours ago) and read 6571 times:

The current 377 seater A333s that Air Asia X have are not capable enough to operate nonstop flights from BKK to Europe in either direction without incurring payload penalties. They have ordered a dozen or more A359s for delivery from 2016 onwards and those aircraft will be capable to operate these long haul services. Nevertheless after having failed miserably their KUL-EU long haul experiment, it would be best for the airline to first build a regional medium haul network out of BKK with its A333s based there rather than take on a more riskier, low yielding approach targeting Europe.

User currently offlinefiscal From Australia, joined Oct 2009, 315 posts, RR: 0
Reply 11, posted (1 year 3 weeks 1 day 22 hours ago) and read 6506 times:

Quoting behramjee (Reply 10):
Nevertheless after having failed miserably their KUL-EU long haul experiment, it would be best for the airline to first build a regional medium haul network out of BKK with its A333s based there rather than take on a more riskier, low yielding approach targeting Europe.

I think we have to consider two elements here. Air Asia X have always had a policy that if a route is not making money, then it has to go. This fits the UK route removal. From a customer perspective, it was a successful route, but unlike legacy airlines that may be prepared to lose on a route to make competition harder, AAX cut and run before losing too much.

Secondly, I understand that the AAX forward purchased their fuel, did not do themselves any favors, and it cost them more than expected. So I suppose you could class them as an opportunistic airline that will probably be here for a long time to come. Anyway, MAS is doing a good job now on the UK run, with reasonable fares, and an a380 to boot so it all ended nicely in the end.


User currently offlineJU068 From Serbia, joined Aug 2009, 2579 posts, RR: 6
Reply 12, posted (1 year 3 weeks 1 day 22 hours ago) and read 6443 times:

I doubt they would enter the European market any time soon. Most countries are still in recession and fares from any European city to Thailand are dirt cheap.
The only way they could make it work at this point is if they can secure a deal with a big tourist agency, however that is not really easy.


User currently offlineIndianicWorld From Australia, joined Jun 2001, 2782 posts, RR: 0
Reply 13, posted (1 year 3 weeks 1 day 20 hours ago) and read 6231 times:

Quoting Ben175 (Reply 5):
I'd love to see D7 operate BKK-PER/MEL and SYD. They've really opened up Kuala Lumpur as a destination down under.

Not a bad move really, but unsure if they will want to do this as it may eat into their KUL loads.

Moving some of the existing KUL frequencies into BKK may work though.


User currently offlinelightsaber From United States of America, joined Jan 2005, 12420 posts, RR: 100
Reply 14, posted (1 year 3 weeks 1 day 14 hours ago) and read 5019 times:
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Quoting spinkid (Reply 2):
'm a little surprised they chose Don Muang. I thought after the flooding most operations had moved to BKK and had not moved back to Don Muang.

I'm not that surprised. Its closer in, has better hotel service, and is lower cost.

Quoting LAXintl (Reply 8):
Europe demand to Thailand is certainly much larger then from Malaysia where they tried previously.

A good possibility. Tie in a few connections and it would work.

Lightsaber



I've posted how many times?!?
User currently offlineSKAirbus From Norway, joined Oct 2007, 1618 posts, RR: 2
Reply 15, posted (1 year 3 weeks 1 day 12 hours ago) and read 4584 times:

A bit off topic but is DY going to operate into Don Muang seeing as it is the new "low cost hub"?


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User currently offlineLAXintl From United States of America, joined May 2000, 24325 posts, RR: 47
Reply 16, posted (1 year 3 weeks 1 day 11 hours ago) and read 4481 times:

They don't need a Europe service right away, however I think they can shake up the market pretty well for TG and the high cost legacy airlines by offering quite low fares, far below what even the ME3 offer.

EU-Thailand is a huge market (almost 6mil arrivals in 2012) and even in face of the European recession has grown the last 2-years.

Add in the almost 150 daily flights the various Air Asia carriers operate at DMK, it could become a strong nexus for Air Asia X growth.



From the desert to the sea, to all of Southern California
User currently offlineTC957 From UK - England, joined May 2012, 699 posts, RR: 0
Reply 17, posted (1 year 3 weeks 1 day 8 hours ago) and read 4052 times:

Quoting behramjee (Reply 10):

I thought the latest 242-tonne HGW 333's can do nearly 6000 nm's ?? Put's all but GLA & DUB within range.


User currently onlineMaverickM11 From United States of America, joined Apr 2000, 16939 posts, RR: 48
Reply 18, posted (1 year 3 weeks 1 day 8 hours ago) and read 4030 times:

Quoting TC957 (Reply 4):
Air Asia X could operate with the latest A333IGW's to Europe from BKK if they wished, but I guess DY will steal a march on them with their intended forthcoming services to BKK. Hopefully that'll bring fares down a bit

I don't know how much lower fares can go; they're already pretty dreadful and carriers like AF can't even maintain a single daily service year round. Fares at this point aren't even covering full operating costs probably...



E pur si muove -Galileo
User currently offlineTC957 From UK - England, joined May 2012, 699 posts, RR: 0
Reply 19, posted (1 year 3 weeks 1 day 8 hours ago) and read 3990 times:

LAX - similar distance to BKK from London - often has fares around £200GBP lower. Obviously a ball-part figure, and subject to seasons, but all the same LAX is normally around that sort of lesser cost.

User currently offlineMAN2SIN2BKK From Thailand, joined Feb 2009, 220 posts, RR: 0
Reply 20, posted (1 year 3 weeks 22 hours ago) and read 3613 times:

Quoting TC957 (Reply 19):
LAX - similar distance to BKK from London - often has fares around £200GBP lower. Obviously a ball-part figure, and subject to seasons, but all the same LAX is normally around that sort of lesser cost.

I think you need to take into context that the major target is also the large ex-pat community living in Thailand; there are 50K Brits alone. The economy fares are BKK-Europe-BKK are significantly higher than Europe-BKK-Europe. Just check the TG or BA sites for a price comparison.

This is the target market that EK, EY, QR etc are eating into

Air Asia could get a considerable slice of that market if they upgraded their product a bit and had a reasonable business class section

Me, I was using TG business class on long haul to Europe up till 4 years back now I use EY, its 35% cheaper for a flat bed not 170 angle, great service and I don't mind a 45 minute leg stretch at Abu Dhabi; but I still fly TG in Asia as Air Asia do not offer me a reasonable alternative to comfort or convenience.


User currently offlineLAXintl From United States of America, joined May 2000, 24325 posts, RR: 47
Reply 21, posted (1 year 2 weeks 22 hours ago) and read 3078 times:

From the other Air Asia X thread sounds like their carriers shorter term focus will be more regionally to places like Australia, China, Japan and Korea.

Maybe when the A350s arrive they can look at more distant stuff from a DMK base.



From the desert to the sea, to all of Southern California
User currently offlinebehramjee From Canada, joined Aug 2003, 4716 posts, RR: 44
Reply 22, posted (1 year 2 weeks 22 hours ago) and read 3046 times:

If based in BKK, Air Asia X should think a bit outside the box and operate to other places westwards rather than eastwards only.

For example, KWI-BKK market size in 2012 was 130,000 passengers and only KU operates this flight 6 times per week nonstop with a tag on to MNL with an A343 so the capacity is split. There is good potential in KWI for Air Asia X to operate initially 4 times per week nonstop from BKK as it will also in turn generate decent feeder traffic for Air Asia Thailand in turn.

Another market to look into is DAC-BKK operated on a daily basis using an A333 of which the market size last year was 230,000 pax. Its a short 2.5 hour flight from BKK hence no big risk involved. Plus from DAC, very high yielding cargo too can be obtained for SE Asia and Thailand itself year round !


User currently offlineLAXintl From United States of America, joined May 2000, 24325 posts, RR: 47
Reply 23, posted (1 year 1 week 3 days 10 hours ago) and read 2601 times:

Nice analysis article on a Bangkok base for Air Asia X.

AirAsia X selection of Bangkok as second base increases pressure on Thai Airways
http://centreforaviation.com/analysi...es-pressure-on-thai-airways-104002

For routes article believes initial focus will be Australia, Japan and Korea routes, but in long run there is tremendous market potential for longer haul services from Thailand.
They also figure strong feed from the Air Asia A320 into fleet at DMK would open up many 1-stop opportunities across the region.

At the end its all adds up to more pressure on Thai Airways.



From the desert to the sea, to all of Southern California
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