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THAI SMILE
Cabinet approves THAI Smile Airways as subsidiary of Thai Airways
Nongnapas Maipanit
The Nation

BANGKOK: -- The Cabinet yesterday approved the establishment of THAI Smile Airways, which until now has been a unit of Thai Airways International, as a wholly owned subsidiary of THAI, said Transport Minister Chadchart Sittipunt.

The cost of setting up the subsidiary company is Bt1.8 billion.

Prime Minister Yingluck Shinawatra said during the Cabinet meeting that THAI and THAI Smile had to tap separate market segments and to have separate operating accounts - THAI Smile's costs could not be laid on THAI. THAI Smile also has to be able to compete with other low-cost rivals.

Chadchart said THAI Smile had to make clear determinations of its per-kilometre operational costs, cabin factors and market segments.

THAI can immediately set up the THAI Smile company now that it has Cabinet approval.

A ministry source said THAI Smile would operate both domestic and international routes not exceeding four hours' flying time. These could include ASEAN countries, China and India. It will be positioned as a regional airline with the same service quality as THAI.

Thirty per cent of its customers will be those connecting with THAI flights, and the rest will remain within the THAI Smile destination network. Its economy-class airfare for international routes will be 20 per cent lower than those of THAI. The economy fare for domestic routes will be the same as THAI's.

THAI Smile will recruit some employees from THAI and outsource some work to others. Initially it will have 537 staff before rising to 892 in 2017.

It will utilise 20 Airbus A320-200s leased from THAI. Of that total, four were delivered last year while THAI Smile was still operating as a THAI unit. Six planes will be delivered this year, another seven next year, and the last three in 2015.


-- The Nation 2013-09-25

[jaltsc]

"The Cabinet yesterday approved the establishment of THAI Smile Airways..."

With only one stipulation. The logo on the sides of the plane have to be miniscule. It costs too much money for the paint to cover up a large logo after every crash

[Thai at Heart]

Was Thai smile profitable? Pulling it out of the Thai numbers might not be that smart a move.

[ChrisY1]

Too much competition for Thai in this field methinks......

If the Pollies can keep away from it, there may be a chance.....but being a National company...there would have to be doubts...time will see what eventuates

[RubbaJohnny]

Rival Gondola service from Don Muang to very Swampy in the errrr PIPELINE?

[Torrens54]

Perhaps "Thai Smile" will take to the air without any Logos at all.

Just imagine, they can be late, bitchy and even have the odd prang and No Body will know.

Certainly save T.G. heaps of money on Cover-up Paint.

Edited September 25, 2013 by Torrens54

[Cuban]

Approved on the condition of freebie flights for those that helped it and their families....

[WhizBang]

It will be positioned as a regional airline with the same service quality as THAI.

That's unfortunate. One would have hoped for better quality service.

[IsaanUSA]

I don't really understand the point of Thai Smile. Why can't THAI just do the exact same routes/pricing/etc? Why do they need a separate airline company to do this? Looking for a real answer, not a sarcastic reply/smiley face.

[hanno]

I flew with THAI from Chiang Mai to BKK last week but found myself on a Thai Smile. Seems they are interchanging the planes freely. Service was OK, food inedible (and not really needed for a 45-minute hop).

[noitom]

I don't really understand the point of Thai Smile. Why can't THAI just do the exact same routes/pricing/etc? Why do they need a separate airline company to do this? Looking for a real answer, not a sarcastic reply/smiley face.

So as not to cannibalize the Thai Airways brand.

[Jasun]

I don't really understand the point of Thai Smile. Why can't THAI just do the exact same routes/pricing/etc? Why do they need a separate airline company to do this? Looking for a real answer, not a sarcastic reply/smiley face.

You can't rip the guts out if the service and put the Thai brand name against it. The budget airline needs a whole new market position, which will be different from the mother brand.

[Cats4ever]

I flew Thai Smile a few months ago from BKK to Udon in business. Don't think I will do so again. 3x3x3 seating and fairly hard seats at that. Short flight, so will go cattle class in future.

[hanno]

I flew Thai Smile a few months ago from BKK to Udon in business. Don't think I will do so again. 3x3x3 seating and fairly hard seats at that. Short flight, so will go cattle class in future.

I was glad I did not book business (I usually do) when I saw their configuration......

[h90]

I don't really understand the point of Thai Smile. Why can't THAI just do the exact same routes/pricing/etc? Why do they need a separate airline company to do this? Looking for a real answer, not a sarcastic reply/smiley face.

Well I try, but I doubt it is possible without sarcastic opinions.

1) THAI is trying to be a quality airline, they can't fly some routes without giving food and lower quality staff. They can't go without entertainment system.

2) Thai has a huge overhead, everyone who ever was in the management board and the relatives fly for free business class...labor union complained once that there are sometimes almost no seats to sell.

3) For decades Thai employed people because they are they relatives of someone and created jobs for it, as well if someone can't do a job he wasn't fired he was moved to a position where it is not critical.

4) The management is appointed from politician.

If you calculate the costs per km and passenger they can't do it.

[Isee]

I flew Thai Smile a few months ago from BKK to Udon in business. Don't think I will do so again. 3x3x3 seating and fairly hard seats at that. Short flight, so will go cattle class in future.

Exact same but I flew to Ubon. Won't waste my money on business class anymore as it is an absolute joke.