THAI gears up for AEC

  Woranate Laprabang of THAI’s corporate strategy and planning department said the company wanted to protect its business share not only in Thailand but also in the region, through its three airlines – Thai Airways, Thai Smile, and Nok Air, in which the company controls a 49-per-cent stake.
Its new budget airline, Thai Smile, will be launched on July 7, with the maiden flight to Macau. It will compete directly with AirAsia, Asia’s biggest low-cost airline.
A one-way Thai Smile ticket to Macau is Bt3,000, with three flights a day. Yesterday, AirAsia offered a one-way ticket to Macau for Bt1,650. Passengers can book until tomorrow and can fly from July 7 to October 31.
However, Thai Smile’s service is somewhat different from that of rivals. It will provide snacks and drinks to passengers and also allow checked luggage without charge. It will fly over Thai territory and also in the region.
Thai Smile is part of THAI’s business, not under a new company. It will have to work closely with THAI to ensure there is no overlapping of routes.
After its launch, Thai Smile will add four new routes: Bangkok-Krabi and Bangkok-Surat Thani, replacing existing flights of Thai Airways; Bangkok-Chiang Mai; and Bangkok-Phuket.
There are four Airbus A320 aircraft in the Thai Smile fleet. It is expected to have a load factor of 72 per cent, with 90 flights per week. In its first year of operations, the airline is expected to earn revenue of Bt1.8 billion and carry 300,000 passengers.
Next year, Thai Smile expects Bt5 billion in revenue, with 150 flights a week on nine routes. The company also plans to promote Thai Smile as a regional airline over the next five years. Overseas flights will make up 70 per cent of the total.