Newly-launched airline THAI Smile is aiming to satisfy the growing regional demand for flights to and from Thailand, according to the carrier’s Managing Director, Captain Woranate Laprabang.
Speaking to Travel Daily today, Captain Woranate revealed that the airline, which is a business unit of national carrier Thai Airways International (THAI), will take over routes from its parent company, add new regional routes, and offer flights to and from “second base” cities in Thailand, in an effort to capture a greater slice of the growing Thai air travel market.
“We are positioning ourselves as a regional air service,” Captain Woranate told Travel Daily. “By 2015 we will have a fleet of 20 aircraft flying to around 25 destinations – 70% international and 30% domestic. Our routes will be in three categories: replacement of THAI services, new destinations and second base routes.”
This replacement began on Saturday when THAI Smile commenced its inaugural flights connecting Bangkok with Macau. This service will replace the existing THAI service on the route. The next phase of expansion will see the airline boost its domestic presence, replacing THAI service to Krabi and Surat Thani, and running alongside its parent carrier on the high volume routes to Phuket and Chiang Mai. While THAI Smile’s fares will be “on average 10-15% lower than THAI”, Captain Woranate said that the different flight times would mean that the twin carriers’ services could co-exist without cannibalising each other. “Customers are smarter nowadays; they know what they want and one single brand cannot capture each segment,” he added.
And this, it seems, is the key element to the THAI Smile strategy – to become a brand that complements THAI, rather than competes with it. Captain Woranate was also keen to point out that THAI Smile was an extension of the THAI brand, rather than being a separate low-cost unit.
“We are what you might call a hybrid model. We try to adopt a low-cost model in our running and operations, but our products and services are not low-cost. We operate under the same code and air operator’s certificate as THAI, and we have many frequent flyers, so we need to keep up our standards.”
These standards, which set THAI Smile apart from the traditional low-cost carriers, include offering a business class seats complete with airport lounge access, in-flight food and drinks, and 20kg free baggage allowance, rising to 30kg in business class.
THAI Smile is now planning to commence a rapid roll-out of routes, replacing THAI’s flights to regional destinations such as Phnom Penh, Vientiane and Penang, as well as adding its own new, international routes. Captain Woranate revealed that these could include ASEAN hubs such as a Luang Prabang, Mandalay, Danang, Cebu and Surabaya, as well as the Chinese cities of Hangzhou, Shenzhen and Chongqing, and Indian hubs like Ahmadabad and Kochi. He was keen to stress however, that there would be “many factors affecting the new routes” before they can be confirmed. One new international route that is definitely commencing is Hyderabad, which will launch in September.
“Thailand is a very attractive market, which brings great opportunities. But it also means that other airlines see these opportunities. If you leave the gap open, new competitors will come in. We need to fill that gap,” he concluded.
