Bangkok Airways - Thailand’s Airport-Owning Airline
Bangkok Airways not only offers flights to destinations but also owns airports at the destination. We explore how the airline company is involved in both transportation and infrastructure to build demand.
At a glance
Industry
Aviation
Year Founded
1968
Revenue
US$141.86 million
as of 2023
No. of Flights Flown
44,774
(2023)
Abstract
Bangkok Airways, a unique Thai boutique airline, has established a strong presence in the aviation industry by owning and operating its own airports at popular tourist destinations like Samui, Sukhothai, and Trat – contrasting with traditional airlines and low-cost carriers that typically rely on existing airport infrastructure. This innovative strategy allows the airline to tap into inherent demand for tourism in specific destinations and strategically create derived demand for its flight services.
This case study explores the motivations and implications of Bangkok Airways' business model, examining its impact on the tourism industry, local communities, and the airline's financial performance. It also draws parallels with Japanese railway companies, which have employed similar strategies to create derived demand and foster regional development.
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(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
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