AirAsia has declared Phuket as one of its regional hubs. AirAsia’s rapid expansion in building network of destinations in the region has made it the industry leader. The national flag carrier, Thai Airways finally takes an action in response. Teaming up with Singaporean based Tiger Air it established a new low fare carrier Thai Tiger. Whilst final announcement has not been made, the new budget airliner Thai Tiger is likely to anchor its central operation in Phuket.
As of most national flag carriers anywhere else in the world, Thai Airways has been offering service excellence as its key selling point. Unfortunately the emerging market of the 21th century prefers value compared to superior service, end therefore low fare airliners are taking the advantage.
Players identified Phuket as a key point in to shape traffic triangle among Phuket, Singapore, and Kuala Lumpur and therefore becomes the battle zone among regional key players. In south-east Asian perspective, the triangle has been target for travel expansion during the last 20 years both in business and tourism. Phuket is naturally trying to break its traditional link to Bangkok, especially after the latest political turmoil in Bangkok which proved distinctive difference between the two.
The fact that government has approved to double the capacity of Phuket International Airport before 2015 meets perfectly with the tendency of international carriers seeking trouble-free destination in Thailand.
Tiger Air has nine aircrafts based in Australia and leading the competition for low fare flights. However, whilst Tiger Air has been quite successful in building their link to and among Australian destinations, it is now facing though challenges by Qantas and Virgin Blue. Historically Australian domestic market has never served by more than two carriers. Therefore Tiger Air is in need to expand their network somewhere else.
Qantas budget arm, Jetstar, is driving continuously increasing number of Australian tourists to Phuket. AirAsia brought tourists in from Hong Kong and China in addition to regional origins like Jakarta and Kuala Lumpur. To ensure its graceful entry to the battle zone, Thai Tiger is more than prepared by acquiring fresh resources including latest purchase of seven new A330-300 wide-bodied Airbus.

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