Thai Smile Airways replaces THAI domestic routes to meet market demand

BANGKOK, February 20 (TNA) - Thai Airways International (THAI), the national flag carrier, has allowed Thai Smile Airways, its new subsidiary, to operate some of its domestic flights as part of its marketing strategies. Chokchai Panyayong, THAI Senior Executive Vice President Commercial (DN), who is also Acting THAI President, explained on Thursday that competition between low-cost airlines in Thailand has increased both on fares and the number of flights operated. THAI, therefore, needs to adjust its marketing strategies accordingly by allowing its daughter airline to operate some domestic flights, for example, Bangkok-Hat Yai routes. THAI also plans to increase Thai Smile Airways’ flights, starting from March 30, 2014 onwards, to meet its growing market demand. Chokchai noted, however, that Thai Smile Airways’ passengers can still use booking service at all THAI ticketing offices, as well as THAI Airport Lounges as usual. Besides, THAI Smile Airways will continue launching promotional campaigns to further stimulate its aviation-related revenues. Earlier, Chokchai acknowledged that the number of passengers using THAI flights has dropped by 30 per cent due mainly to impacts from prolonged domestic political protests since October 2013, coupled with China’s zero-dollar tour packages, in which Chinese tourists do not have to pay anything. According to the THAI senior executive vice president, the national airline's average passenger cabin factor from January-February 2014 stood at 72 and 70 per cent respectively and its cabin factor in the first quarter of this year is projected at 71-72 per cent and at 70 per cent in the second quarter, during which THAI’s flight frequencies will be cut to cope with the annually low tourism season. The THAI senior executive vice president noted, however, that recent severe snowstorm in Japan has not affected THAI’s operations and revenues although part of THAI flights were forced to land at other airports or were delayed due to the severe weather contidion.(TNA)