Domestic airfares continue to decrease

Supply rises as China routes slashed

- NARUMON KASEMSUK

Travellers walk through the concourse area at Suvarnabhumi airport. Domestic ticket prices declined this year as low-cost carriers shifted from weak Chinese routes to expand domestic flights.

Despite a dispute over expensive airfares to flood-stricken Hat Yai, average domestic ticket prices this year continued to decline, as low-cost carriers fled from underperforming Chinese routes to add domestic flights and avoid competition with state-backed Chinese airlines.

Locals cried foul over an airfare of almost 10,000 baht for Bangkok-Hat Yai flights, prompting the Civil Aviation Authority of Thailand (CAAT) to investigate the case. The regulator said the price ceiling for this route is capped at 7,266 baht for low-cost carriers and 10,049 baht for full-service flights.

Puttipong Prasarttong-Osoth, president of SET-listed Bangkok Airways, said the airline’s average airfare in the third quarter decreased by 2.2% to 4,115.3 baht year-on-year, while over the first nine months of this year average fares fell 1.1% to 4,178.9 baht.

Of those fares, domestic routes excluding Samui decreased due to heightened competition among local airlines, which discounted fares to entice purchases.

He said yields for domestic routes plunged due to enormous supply.