Thai AirAsia Brings Budget Model to Bangkok – Colombo Route

Thai AirAsia is to launch a flight between Bangkok and Colombo from March 1, 2012 introducing low-cost competition onto the link between the Thai and Sri Lankan capital cities. The airline, a joint venture between Malaysian carrier AirAsia and Thai company Asia Aviation, will offer a daily morning flight on the route.

An estimated 198,000 O&D passengers travelled between Bangkok and Colombo in the past year, up 5.8 per cent on the previous 12 months. SriLankan Airlines currently dominates traffic on the route thanks to its twice daily offering, while Thai Airways International and Cathay Pacific Airways also provide direct flights between the cities.

Thai AirAsia’s arrival is likely to result in a reduction in average fares as the budget carrier looks to stimulate market demand. The current average fare on the route is $166 each way. However, it is worth noting that the airline’s sister carrier AirAsia already provides a link to Colombo from Kuala Lumpur with estimated average fares actually 2.5 per cent higher than the market average.