Business lesson : low-cost airlines… organize the market ?

That’s the beauty of Thailand (and Asia)… from time to time, you can read something… absolutly striking in a regular daily newspaper.

Consider this quote :” Several low-cost airlines are beginning to feel the impact of rising oil prices and are now considering increasing fares.

Low- cost airline operators will meet on Wednesday to decide whether they should raise ticket fares or the surcharge on fuel. ” (Bangkok Post)

We all know that oil is going up, that airlines face higher costs, that air transportation is a highly competitive market…

But now, we learn that the thai low-cost airlines can just organize a meeting themselves to… “decide whether they should raise ticket fares or the surcharge on fuel” ! đŸ˜‰

Just half of the quarter of such an event… in Europe or USA… would be totally illegal (and for good reasons).

Companies are charged in Europe and USA for… price fixing !

But here, it’s just normal.

I don’t want to be too emphatic, but I believe it’s a good occasion to repeat the ultimate golden rule to understand Asia : apparences.

You think that there is competition. You think that there is democracy. etc. But it’s just illusion.

This little quote shows perfectly the major difference between Asia and the West : we are playing on different levels.

Asian apparently are playing according to the rules… But actually, and in many cases, they are mimicking.

1 Response to “Business lesson : low-cost airlines… organize the market ?”


  1. 1 fall 21 April 2008 at 9:25 am

    No, no.
    It’s also illegal in Thailand to fix the market like that.


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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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