Thai Lion Air buckles up for competition in budget sector

NEW LCC entrant Thai Lion Air will go head-to-head with budget carriers in Thailand when it commences operations this year-end, differentiating itself through consistently low fares and value-adds.

The airline will start twice-daily flights to Chiang Mai and Jakarta respectively, and one daily flight to Kuala Lumpur from its Don Mueang base on December 30 on its two brand-new B737-900ERs, said Thai Lion Air CEO, Darsito Hendroseputro, during a media briefing today.

When questioned on the adoption of the LCC strategy for Thai Lion Air as opposed to the hybrid model adopted by sister airline Malindo Air in Malaysia, Darsito said: “Thai Lion Air will operate like our parent company, Lion Air, in Indonesia, on a total LCC model. People coming to Thailand look for value, so the potential of the Thai market is more towards the low-cost segment.”

“We are aiming for a six to eight per cent market share in Thailand…The LCC market in Thailand is fairly challenging, but the number of people using LCCs is increasing every year. In five years’ time, we envisage Thai Lion Air to be one of the strongest LCCs in Thailand,” he remarked.

“In 2014, we are bringing an additional eight aircraft into Thailand, with a total of 50 aircraft in another five years,” said Darsito, who added the airline would also begin flying to Phuket and Hat Yai in Thailand, Singapore, India and China (likely Guangzhou and Hong Kong) next year.

The LCC today unveiled its new Boeing 737-900ER aircraft, which will be deployed on the carrier’s first routes, at Bangkok’s Don Mueang International Airport.

“Thai Lion Air will be the first airline in Thailand to operate the B737-900ERs, the biggest narrow-body in the world,” said Leithen Francis, head of public relations, Lion Group. The higher 215-seat capacity on its new aircraft – versus the typical 180 seats on Airbus A320s – would enable Thai Lion Air to operate its routes more economically, he added.

Darsito remarked that the airline “will offer consistent low fares”, as opposed to its competitors’ strategies of offering low fares for a limited period.

Further setting the carrier apart from the competition is Thai Lion Air’s free 15kg baggage allowance, said Francis.

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