THAI Ends Thai Smile Operations After Fleet Merger Boosts Efficiency

Thai Airways International (THAI) has officially decided to terminate its budget subsidiary, Thai Smile Airways, following the successful transfer of its Airbus A320 fleet to the parent airline. THAI’s CEO, Chai Eamsiri, confirmed that the decision came after the fleet’s utilization improved significantly under THAI’s management. The 20 Airbus A320 planes, previously under Thai Smile, are now flying up to 10.5 hours per day, compared to less than nine hours during Thai Smile’s operation.

The fleet now operates primarily on routes to China and India, offering extended night flights, which has resulted in higher income generation. Chai highlighted that the merger has also allowed THAI to cut costs, notably by eliminating positions like the Thai Smile CEO and CFO roles.

Since Thai Smile’s inception in 2013, the airline accumulated losses totaling 20.012 billion baht. After facing liquidity challenges in 2023, THAI transferred the fleet from its subsidiary by December of that year, completing the merger in January 2024.

In addition to this, THAI has upgraded the seat configurations on the A320s. Business-class seating now occupies the first four rows of economy, with 12 seats offering 160-degree reclining for added comfort on shorter flights. A wireless in-flight display system will also be installed, allowing passengers to stream entertainment on their own devices. This upgrade is expected to begin in November and complete by mid-2024.

Looking forward, THAI plans to bolster its fleet by acquiring 32 Airbus A321 Neo aircraft, with the first batch arriving next year and the remaining set for 2026. The expanded single-aisle fleet will enhance domestic and regional short-haul services.

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