Thai Air considers new budget airline
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Thai Airways International may set up a new budget carrier to tap strong demand in the regional no-frills sector and the group is on track to achieve its net profit target this year after a strong first quarter, mentioned its President. The Thai flag carrier, facing increasing regional competition from bigger rivals like Singapore Airlines and Cathay Pacific Airways, has reduced flights on some loss-making routes in Europe and focused on profitable destinations in Asia.
“We are joining with Nok Air to study a new ultra-low-cost airline,” the airline’s president, Piyasvasti Amranand, said, referring to its 49%-owned budget airline unit. “Nok Air will focus on domestic routes and we need another one to tap strong demand from this sector,” he added, as reported by Reuters.
Thai Airways also aims to launch a new mid-range airline called Thai Smile on July 7th, as part of a revamp after years of losing market share in Asia, where other airlines have benefited from expanding middle classes, fast economic growth and the liberalisation of Southeast Asian air policies.