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Thai Smile to Part Ways with Thai Airways
14th Apr 2014
The regional full-service carrier of Thai Airways is seeking independence from its mother unit to improve profitability after it was issued recently an air operator's certificate (AOC) from Thai aviation regulatory commission.
In 2011, Thai Airways International group created its own regional unit it christened Thai Smile to expand its reach in the regional market. The airline is patterned after SIA's own Silkair and Cathay Pacific's Dragonair which are both successful in their respective spheres of influence.
Thai Smile commenced commercial operations in the middle of 2012 with four aircraft, the narrow-body A320s. During its maiden operations it launched domestic services between Bangkok and key popular destinations, some of which were taken over from its mother unit.
The following year, it began its regional expansion with the launch of 8 international routes from its Bangkok hub. Some of these short-haul international routes, however, were not sustained as some of them have already been canceled or temporarily suspended due to low demand.
Now that the airline has secured its own operator's certificate, it is poised to detach from its mother unit completely to become a 100% subsidiary, enabling it operate on its own independently.
Chokchai Panyayong, Thai Airways acting President, confirmed Thai Smile's plan to part ways though the two airlines will still be under a state-controlled holding company.
With its new AOC issued to them, the airline is now assigned its own IATA designator code WE, shedding off its old TG code which it shared with Thai Airways ever since it started commercial service in 2012.
Being branded as a premium-service airline, Thai Smile offers slightly different brand of products and services commonly found in full-service and budget carriers. Being under the Thai Airways brand it also offers the same frequent flyer program, Royal Orchid Plus, to its loyal customers.
The separation from its mother unit will also mean its removal from the Star Alliance network where Thai Airways is a founding member. Under a single Thai Airways brand, Thai Smile is given the same code with its mother unit, TG, for most of its existence since 2012.
Thai Smile currently flies to regional destinations which include Colombo, Changsha, Chongqing, Macau, Mandalay, Hyderabad, Luang Prabang and Phnom Penh. It will soon take over Thai flights to Vientianne, Laos in September.
Its domestic network includes Bangkok, Chiang Mai, Chiang Rai, Hat Yai, Khon Kaen, Phuket, Krabi, Surat Thani, Ubon Ratchathani and Udon Thani.
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