Thai Airways International is terminating its budget airline, Thai Smile Airways, after transferring its fleet to the parent company. The merger increases plane usage and reduces costs, saving on procurement and salaries. THAI plans to enhance passenger comfort and expand its fleet with 32 new Airbus A321 Neo planes.
Thai Airways International is terminating its budget airline, Thai Smile Airways, following the transfer of Thai Smile's 20 Airbus A320 planes to the parent company.
THAI CEO Chai Eamsiri explained the planes, now used for routes to China and India, generate more income and have increased usage from nine hours per day under Thai Smile to 10.5 hours under THAI.
The merger will also save costs on procurement and salaries.
Thai Smile Airways, which started operations in 2014, accumulated a loss of 20.012 billion baht by the end of 2022 and faced liquidity issues in 2023.
THAI plans to enhance passenger comfort by adjusting seat configurations and installing wireless in-flight display systems on the A320s.
Additionally, THAI will expand its fleet with the purchase of 32 Airbus A321 Neo planes, bolstering its short-haul service capabilities.