Thai Smile Set to Merge with Thai Airways by Early 2024

Thai Smile (WE), the regional subsidiary of Thai Airways International, is on track to conclude its merger with the parent company by January 2024. Thai Airways CEO Chai Eamsiri confirmed this timeline in an interview with The Nation newspaper last week, detailing the ongoing integration process.

The merger involves the transfer of all twenty A320-200 aircraft currently operated by Thai Smile to Thai Airways. According to data from ch-aviation fleets advanced, nine of these aircraft have already been successfully transferred. Once the transfer process is complete, Eamsiri stated that Thai Airways will inform the Civil Aviation Authority of Thailand, triggering the cancellation of Thai Smile’s air operator’s license. However, he mentioned that Thai Airways might retain rights to the Thai Smile brand.

Thai Airways has swiftly integrated the transferred A320-200s into its operations, taking over routes formerly serviced by Thai Smile. These routes include connections between Bangkok Suvarnabhumi and various destinations such as Ahmedabad, Chiang Mai, Delhi International, Dhaka, Hanoi Noi Bai International, Ho Chi Minh City, Kaohsiung, Kathmandu, Kolkata, Mumbai International, Penang, Phnom Penh, Vientiane, and Yangon, as per ch-aviation schedules module.

The primary motivation behind the integration, according to Eamsiri, is to enhance aircraft utilization and contribute to the overall profitability of Thai Airways. He noted that Thai Smile utilized each A320-200 for about nine hours daily, and the goal is to increase this to approximately 13 hours per day under Thai Airways. This optimization strategy is expected to result in a roughly 20% reduction in the day-to-day operating costs of the A320 fleet.

This update provides insights into the strategic move to integrate Thai Smile into Thai Airways, emphasizing the efficiency gains and cost reduction measures expected as a result of the merger.