The questions I would like to focus on today is what could we learn from the success of the airline industry? And, how will we make this happen in other areas of the service sector that have potentials to serve the region? BIS central bankers’ speeches  1  For the first question, the fast development of the airline industry can be mainly attributed to two factors: the right business model for our market and the enabling infrastructure and eco-system. On the private sector’s part, the low-cost airlines know the region’s untapped market and come to serve the large unmet demand with the right business model. Needless to say, they offer customers with simple products, including no-frills service with a single cabin class. Their business model is successful at minimizing operating costs by using a single aircraft model and by choosing the most fuel efficient plane type to reduce fuel and maintenance costs. The airlines also revolutionized the ticketing system by first offering internet booking, paperless tickets and mobile check-ins for greater convenience and lower costs. Apart from the right entrepreneurial spirit of the private sector, policymakers are to be credited with the creation of the airline network in our region. There are at least five factors policymakers have contributed to the success of the regional airline industry.
Much progress has been accomplished, but there remain many more things that we can and should do to further promote more connected financial system. As we have done in the past decade, the Bank of Thailand will stand ready to work with our CLMV partners in various ways from development of human capital and regulatory frameworks to infrastructure building. If we can build strong domestic financial systems and regional financial connectivity, we will be able to reduce costs and create positive spillovers to several other industries. Livelihoods of our people will improve. Workers and investors can more easily and cheaply remit funds across countries. Merchants will find it easier to trade cross-border. The tourism sector will gain even more momentum. SMEs will be able to utilize e-commerce and e-payment in selling their products regionally and globally. Financing of infrastructure projects can also be supported by long-term financial products with proper risk management features. Furthermore, financial inclusion and financial literacy will equip households and small businesses with the needed resilience to go through the increasingly volatile world. Ladies and Gentlemen, Just ten years ago, the low-cost airlines were still at their infancy. The airlines were not household brands, and it would be difficult for most of us to imagine how fast they would grow only in one decade, not to mention the positive impacts they would create to other industries and the wider public.