Thai Airways Set for Thai Smile Integration in Quest to Exit Bankruptcy

In a strategic move to emerge from bankruptcy protection, Thai Airways, Thailand’s premier national carrier, has embarked on the path to integrate its budget subsidiary, Thai Smile, by January 2024. The decision comes in the wake of the airline’s struggle during the COVID-19 pandemic, which further escalated its financial woes to the tune of over $100 million in the decade leading up to 2020.

During the recent Routes World conference held in Istanbul, Thiti Arayakhun, Thai Airways’ Chief of Scheduling, shared insights on the merger. He expressed optimism that absorbing Thai Smile into the mainline operations will yield a more efficient and lucrative business model for Thai Airways. In practical terms, this integration translates to all 12 Airbus A320ceos, previously under Thai Smile’s banner, transitioning to Thai Airways. Furthermore, the entire gamut of routes, slots, and workforce from Thai Smile will seamlessly merge into the parent airline. That’s not all – there’s also buzz about Thai Airways welcoming more Airbus A350-900s to its fleet, alongside five other aircraft, the details of which remain under wraps, in the upcoming year.

But Thai Airways isn’t merely looking to recover – it’s gearing up to soar higher. The airline’s vision for 2024 and 2025 is to not only reinstate its vast network but to also spread its wings further to newer destinations across China, Europe, and Australia.

However, the skies ahead do present a potential challenge. A newcomer in the aviation scene, Really Cool Airlines, is poised to make its debut in the second quarter of 2024. Operating with two leased, pre-owned Airbus A330-300s, this full-service ‘lifestyle carrier’ is setting its sights on both regional and international routes, using Bangkok’s Suvarnabhumi Airport as its hub. Thai Airways, with its refreshed strategy, will need to navigate this new competitive landscape as it takes to the skies once more.

Sources: AirGuide Business airguide.info, bing.com, airlineweekly.skift.com