Risk Factors Affecting the Low Cost Carriers Industry of ASEAN

Abstract

The purpose of this research was to study the risk factors affecting the low cost carrier industry and also to provide guidelines to reduce the risk. The research was conducted by studying the documents, in depth interviews with personnel at the airports in Thailand, staff of Aeronautical Radio of Thailand and 30 executives from low cost carriers of which 25 executives gave main information. It was found that the risk affecting the low cost carriers industry consists of 2 main factors: Risks in aviation industry and risks in operating the business. Guidelines were provided to reduce the risks. The application of Porter’s 5 Force Model would help to manage low cost carriers industry effectively.

Keywords: Risks; Low Cost Carriers Industry; ASEAN