BANGKOK: Thai Airways International will no longer keep its loss-ridden Thai Smile Airways budget airline but will terminate it now that it has transferred a fleet of 20 Airbus A320 planes to THAI, the parent airline's chief executive officer said.
THAI CEO Chai Eamsiri (pic) said that after the fleet was transferred to be under operation by THAI, they generated more income than when they were under operation of Thai Smile.
The fleet was earlier used on average at no more than nine hours per day under Thai Smile but now their usage has risen to 10.5 hours per day, Chai said recently.
He explained that the fleet was used on routes to China and India, so the planes were flown at night for longer hours.
Moreover, after the operation of Thai Smile was merged into THAI, the national flag carrier could save costs on procurement and salaries.
He said THAI now does not have to shoulder the salaries for the Thai Smile CEO and chief financial officer, so it can save a lot on salary costs.
“So we plan to terminate Thai Smile Airways, which is a daughter company owned 100% by THAI, for good instead of keeping it for other purposes,” Chai said.
Thai Smile Airways was established on Oct 17, 2013, with registered capital of 1.8 billion baht and with THAI holding 100% of shares. It started flights on April 10, 2014.
From 2013 to Dec 31, 2022, Thai Smile accumulated a loss of 20.012 billion baht. It suffered a liquidity crunch in April 2023, so THAI started transferring its fleet to the parent airline on Dec 31, 2023. Its merger with THAI was completed in January this year.
Chai said the flag carrier has also adjusted seat configurations on A320s that were transferred from Thai Smile to serve THAI passengers better.
For example, he said, the first four rows of seats of the economy class were changed to business class with 12 seats remaining, and each could recline at 160 degrees to make passengers more comfortable during two or three hours of flight.
Chai said the planes would also be upgraded with a wireless in-flight display (IFD) system to allow passengers to link their smartphones or tablets to the onboard entertainment services to enjoy movies and music from their own devices.
The upgrade would start in November and it would be done in the second quarter of next year, Chai said.
On THAI’s plan to increase its fleet, Chai said the airline would buy more single-aisle planes to increase its strength for short-haul services.
It would buy 32 Airbus A312 Neo planes, and the first 12 planes would be delivered next year and the rest in 2026.
With their purchase, THAI would have 52 single-aisle planes, 32 Airbus A321 Neo and 20 Airbus A320 planes, Chai said.
The fleets of single-aisle planes would allow THAI to improve its domestic and short-haul services in the region, he added. - The Nation/ANN
