One-Two-Go: budget airline industry takes off
The country’s first budget airline, One-Two-Go, made its inaugural flight from Bangkok to Chiang Mai, and heralded a new chapter in the local aviation industry.
Fares for budget air carriers were 30-40% cheaper than conventional airlines and their popularity grew rapidly. One-Two-Go positioned itself to directly challenge AirAsia, a Kuala Lumpur-based airline that had successfully—and somewhat controversially—expanded into domestic Thai routes. Some local airline executives criticised Prime Minister Thaksin Shinawatra for allowing foreign airlines to operate domestic Thai routes. Thaksin’s Shin Corp controlled a large stake in AirAsia. One-Two-Go soon announced plans to expand to destinations including Phuket, Khon Kaen, Chiang Rai and Hat Yai.