Thai Smile, the budget subsidiary of Thai Airways (THAI), is targeting a 20% rise in its share of the low-cost airline market when it shifts its operations base from Suvarnabhumi to Don Mueang airport this month.
Flight Officer Suraphon Israngura Na Ayuthya, THAI's acting executive vice-president for commerce, said the relocation is aimed at competing with other low-cost airlines, such as AirAsia, which controls the biggest share in the market.
He said Thai Smile will start operations at Don Mueang airport from Aug 8 with eight domestic flights per day on three routes, and full operations will start on Oct 26. Thai Smile will focus on inter-provincial flights, while flights which require passenger transfers to THAI aircraft will still operate at Suvarnabhumi airport, Fg Off Suraphon said.
The relocation is aimed at boosting Thai Smile's share in the low-cost market. Thai Smile and Nok Air will work together to avoid duplicating routes, he said.
THAI Smile acting managing director Woraneti Lahprabang said the move to Don Mueang airport could cut operating costs by 4-5% because the lighter air traffic at this airport means planes spend less time circling waiting to land. The airline, however, will have to build a VIP lounge at the airport at a cost of four or five million baht.
"Thai Smile has to relocate its flight operation because Suvarnabhumi airport's second-phase expansion could take at least six more years to finish," Mr Woraneti said.
Total income is expected to drop 20% from the 10-billion-baht target after political protests early this year led to a drop in tourists, Mr Woraneti said. Passenger numbers are likely miss the three-million target, he said.
New foreign routes will also be explored, such as Don Mueang-Macau and Don Mueang-Hong Kong, he added.
Initially, three flights will be offered between Don Mueang and Chiang Mai, three flights between Don Mueang and Khon Kaen and two flights between Don Mueang and Phuket.