THAI Smile will need to operate more transparently, especially over costs, after spinning off from parent Thai Airways International (THAI) to have a separate corporate entity.
"THAI Smile can no longer relate itself to THAI's overall performance. It must have its own process to clearly measure its costs," Sorajak Kasemsuvan, president of the flag carrier, said yesterday.
He was responding to the cabinet's endorsement on Tuesday for THAI Smile to change its status from a business unit of THAI to become a wholly owned subsidiary known as THAI Smile Airways to operate a budget airline.
THAI Smile took to the skies in July 2012 to help THAI to capture the growing demand for budget air travel at home and across the region.
THAI Smile will look at the success stories of airlines such as SilkAir, a subsidiary of Singapore Airlines, as a model as it moves to become a company in its own right in the second quarter of next year, Mr Sorajak said.
The company will be capitalised with 1.8 billion baht, while the airline will increase its fleet of three A320 jets to 20 over the next three years.