Thai Airways International will make its subsidiary Thai Smile totally independent

BANGKOK- Thai Smile is soon to be turned into a totally independent operating carrier by Thai Airways. The airline is due to change its name by next February. The new name will then be Thai Smile Airways Co. It is due to continue to strengthen its network on domestic and regional routes, taking over some of Thai Airways current routes but also adding new destinations. The airline will receive an air operator's certificate (AOC) in the next two months and its code will most probably be "SM".

Thai Airways sees an opportunity for its affiliate to help narrowing losses on short-haul routes. THAI and its subsidiaries reported a net loss of Bt6.313 billion (US$ 200 million) in the first nine months of this year.

Chokchai Panyayong, THAI's senior executive vice president, indicated to Thai media that Thai Smile would be run as a cost-centric scheme which would then assure its competitiveness and let also decide on its strategic development. As a lower cost carrier, Thai Smile needs effectively to become more rapid to identify and serve markets, in a bid to remain competitive against a growing number of low cost carriers. Currently all decisions continue to be taken at the highest level of the national carrier. Which generally means slow moving steps. Thai Smile iks likely to jump more and more into regional routes, offering more flexibility to serve money-losing routes at lower costs.

At present, the parent company is defining a group strategy for THAI Smile to follow. THAI will not set aggressive growth strategies, but will focus more on maintaining stability. However, it does expect to grow fast with THAI Smile, as its key target will be the mass market. The management currently think of maybe bringing into the low cost carrier a long haul aircraft such as the B777 for flights up to six hours out of Bangkok.

Thai Smile's current domestic schedule covers Chiang Mai, Surat Thani, Phuket, Krabi, Udon Thani, Ubon Ratchathani and Hat Yai from Suvarnabhumi Airport. It also flies the Chiang Mai-Phuket route. Its overseas destinations from Bangkok's Suvarnabhumi include Macau, Ahmedabad, Colombo, Chongqing and Changsha. But Japan and South Korea are likely to be served increasingly by Thai Smile. On the regional front, Thai Smile will be the third carrier to serve the route between Bangkok and Luang Prabang in Laos route. Flights will start from December 15 with four frequencies per week.

Sourced: TravelDailyNews