Thai Smile and Nok Air Take The Market Challenge Together

9th Aug 2014

'United we stand, divided we fall.' That seems to be the mantra the two airlines which want their rivals hear, as they have banded together to take on the challenge.

AirAsia, you better watch out! You seem to face a formidable foe, bigger than you might have thought.

Acting Executive Vice President, Suraphon Isarangkura na Ayudhaya, disclosed that the heads of the three airlines will converge next week to discuss, among other things, about their strategy in their battle against their market rivals.

The topics to be taken up during the meeting include strategic flight schedules, routes, and marketing plans to boost ticket sales.

The airline executive said that one way to increase ticket sales is to expand sales channels by tapping convenience stores like 7-Eleven. Another way is to negotiate with commercial banks on air ticket promotions aiming at credit card holders.

Thai Smile CEO, Woranate Laprabang, clarified that they won't be slashing their ticket prices to compete with budget carriers. He said that the airline doesn't want to shed off its image as a 'light premium' branded airline which, he claimed, works effectively in its favor.

Thai Smile has promoted itself as neither full-service nor low-cost carrier to differentiate itself from the plethora of budget airlines and legacy players which are crowding Thai air space in the recent years.

As a result, Thai Smile's tickets are usually 15-20% more costly than those sold by low-cost carriers like its sibling airline, Nok Air.

Recently, Thai Smile has moved some of its operations to Don Mueang Airport to better position itself against its rivals which serve the same routes. Three of the routes of Thai Smile which are now operating at Don Mueang include Chiang Mai, Khon Kaen, and Phuket. The aim is to move all its operations from Suvarnabhumi to Don Mueang by October this year.

The airline official said that the average occupancy of each of the three flights have improved from 70% at Suvarnabhumi to 90% at Don Mueang during the first day of its inaugural operations.

Thai Smile will also pride itself as the only non full-service airline to have its own airport lounge, whose construction is currently in progress at Don Mueang. Its schedule launch is October, to coincide the complete transfer of its operations.

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