Transport Thai Airways Shuts Down Budget Carrier Thai Smile Amid Financial Struggles

[snoop1130]

Photo courtesy of TAT Newsroom

 

After enduring continuous financial losses for over a decade, Thai Airways International (THAI) has officially closed its wholly owned subsidiary, Thai Smile Airways. This decision concludes a turbulent chapter for the budget airline, aimed at bolstering THAI's position in the low-cost market. The announcement was made to the Stock Exchange of Thailand (SET) on June 5, following a resolution from the 14th Executive Plan Administrator Meeting on May 8.

 

THAI confirmed that the legal process to dissolve Thai Smile Airways Co., Ltd., in which it held a 99.99% stake, has been completed with the Department of Business Development (DBD) under the Ministry of Commerce. While the subsidiary’s closure will not impact THAI’s ongoing operations, the legal liquidation proceedings are set to continue as scheduled.

 

Thai Smile was launched in 2013 as part of Thai Airways’ strategy to offer a competitive low-cost carrier for domestic and regional flights. The airline began operations in 2014, approved by the government under President Piyasvasti Amranand, with an initial registered capital of 1.8 billion baht.

 

Initially, Thai Smile operated 10 domestic routes from Bangkok’s Suvarnabhumi Airport, under the airline code WE. Despite early optimism, the airline was persistently mired in financial difficulties. Thai Smile’s final flight, WE268 from Hat Yai to Bangkok, flew on December 31, 2023, marking the end of its operations.

 

Over its 12-year span, Thai Smile accumulated over 20.9 billion baht in losses, reporting a negative shareholders’ equity of approximately 9.7 billion baht. Significant losses included 2.08 billion baht in 2016, 3.27 billion baht in 2020, and 4.25 billion baht in 2022.

 

These ongoing financial challenges prompted the decision to cease operations, serving as a costly lesson for THAI as it continues its financial restructuring. The closure of Thai Smile allows the parent company to concentrate on recovering from its losses and revamping its operations.

 

As THAI moves forward without Thai Smile, the focus will shift towards stabilising its core operations and continuing its restructuring efforts to ensure long-term sustainability and competitiveness in the aviation industry.

 

  Adapted by ASEAN Now from The Thaiger 2025-06-11

 

 

[Robert Smith 2]

All that money down the drain and they give 10k to keep them 😁

[ronster]

I thought Thai just ordered a new load of planes 🤔

[hotchilli]

The smile has gone

[jippytum]

Thai Smile was a welcome addition to Thailand's budget airlines. 

Pity the Thai management and freeloaders forced the original company into bankcruptcy. 

[Sydebolle]

All the while the real professionals managed to get through Covid with a black Zero and Air Asia as well as (my favourite) Thai Vietjet Air have recently announced mega orders for new planes. 

The problem with WE was the company's leadership - a carbon-copy of Thai Airway International which, apparently, clocked up a loss of exceeding 300 billion Baht (that is B and not M). TG nevertheless is ordering new planes and then scratches whatever they scratch to find out, if any where to they could fly next. Possibly like a 7/11 for the staff with the difference that there is no cashier on the way out? 

To visualize the organization of such airlines, I love to revert to the pecking order within Thai Airways as published by themselves 😉 Reading is believing 😉 

 

[Kinok Farang]

Shame,best budget airline in SEA.

[scorecard]

Service at Thai / Thai Smile service counter at CM airport way way less than satisfactory.

 

Got a phone call asking me to get to an important meeting BKK as fast as possible.

 

Threw a few clothes and some documents in a small bag and quickly headed to CM Airport (no booking), ran around the various low cost counters trying to learn the next departure time. AirAsia, Nok, etc., not departing CM for at least a few hours.

 

Then to TG / Thai Smile counter. Asked the officer 'what's the departure time of your next flight (TG or Smile) to Bkk'.

 

Got ignored.

 

Asked again, lady officer responded 'you are talking to the manager, have to wait until he's finished talking to his friend'.

 

Then another staff member said 'go and look it up on the internet' and walked away. 

 

Then I asked 'what's the fare'. Again 'look it up on the internet.'

 

Way less than satisfactory service. 

 

 

[Toby1947]

THAI. Shut down the whole operation they can’t compete. Have you see their prices lately ? 😡

[KhunBENQ]

Will likely use them in September for a trip to the consulate.

Oneway Khon Kaen - Suvarnabhumi 1250 Baht incl. checked and carry on, limited seat selection.

Not as bad as I expected.

I remember some threads about flights to London and also not bad.

Things might change.

[The Old Bull]

Thai Smile had a 10% seniors discount. That must have been the problem.

[Dan747]

I flew Smile (First Class) in and out of Ubon (UBP) for several years, when Thai took over the route charged much more, and the service was/is not that "GREAT!" I am giving VietJet Air (Boss) a try and on my first trip this year and was pleasantly surprised on the service into Bangkok (BKK) on my trip. Will try next month back to Ubon (UBP). Happy Travels.

[Middle Aged Grouch]

Corruption ? Bad managment with far to many incompetent and unqualified croonies getting top level executive posts ? Horrific customer service ? A bit of each...?  ...one may ponder....