The Adaptation of Low-Cost Airline Business Model in Thailand: The Consequences of Competitive Pressures and Challenges

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Ekkarat Suwannakul Rugphong Vongsaroj

Abstract

          This academic article aims to study the adaptation of business models and strategies by low-cost airline business in Thailand. By adopting hybrid strategies, low-cost airlines incorporate some service characteristics, product features and operations of full-service airlines into their attributes. This article also attempts to understand the factors influencing those changes which resulted from the challenges, obstacles, and concerns that the airline industry faces as a result of increasingly fierce competition, especially in terms of costs. It is widely known that price strategy is common among low-cost airlines due to its easy implementation and quick results. Nonetheless, many scholars have argued that such a strategy does not contribute to sustainable competitive advantage and profitability. Consequently, low-cost airlines, both in Thailand and worldwide, must adapt in order to survive in a rapidly changing market. The final section of this article offers appropriate strategies that low-cost airlines should consider to lessen the impacts of those challenges and avoid price competition, in order to achieve true business sustainability.

Keywords

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Academic Article

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