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Exclusive: Thai Airways senior executive clarifies, “Thai Smile is not a low-cost carrier”

29 Jun 2012 by ReggieHo
The test flight of the first A320 of Thai Smile, the “new sub-brand business unit” of Thai Airways (TG), took off yesterday from Airbus’s Hamburg facility yesterday (June 28). Things all went well, and if another test flight is also deemed successful today, the aircraft will make its way to Bangkok tomorrow (Saturday) via Dubai. Thai Smile is branded as a “light premium” service, and there has been some confusion as to what it means. Business Traveller has caught up with Thai Airways executive vice-president of product and customer services Teerapol Chotichanapibal for a clearer picture. “We still consider Thai Smile as full-service, but service is delivered smartly and in a modern style, while still having the Thai touch. It’s like when telling a decorator, I want this place to be luxurious but in a minimalist style,” Teerapol said. “‘Light’ is not ‘cheap’. We want [Thai Smile] to represent value for money.” At this point, Thai Smile is operated as a business unit of TG and its flights will fly under the same code, although it is expected to become increasingly independent as time goes. Captain Woranate Laprabang, formerly in corporate planning for TG, has been appointed managing director of the new unit. Thai Smile’s first flight is scheduled for July 7, with Macau as the launch destination (see story here). There are a lot of low-cost carriers serving Macau, but those are not Thai Smile’s competitors, according to Teerapol. “Who actually go to Macau? It certainly has a name for gaming, but it‘s also quite a pretty place. If you are talking about the gaming segment of the market, they can do it in Thailand much more cheaply if they just take land transportation for a few hours for the border,” he said. “These people are not short of money. There is enough traffic out there from them, who say, forget about this nonsense and hassle of having to pay for food and drinks, they just want a light and easy trip.” According to Teerapol, Thai Smile will be able to offer fares 10 to 20 per cent cheaper than those of legacy airlines as, although not a low-cost carrier per se, it will be run on an operational cost structure similar to that of a low-cost carrier. As reported earlier (see story here), passengers get free seat selection, counter check-in, free baggage allowance (20kg for economy class and 30kg for business class) as well as free food and drinks onboard. The first five rows of the cabin are designated “Smile Plus”, a business class product. There is more leg room, and middle seat on each side is to be left vacant, so that passengers can lift up the armrest for more stretching space. Thai Smile has 11 A320s on order, and it is expected that by the end of 2012, four will be in service. Other than Macau, they will service a host of destinations within Thailand such as Chiang Mai, Phuket and Krabi. The rest will be delivered in 2013, with five of them equipped with one of Airbus’s latest inventions “sharklets” for better aerodynamics. Although initially, Thai Smile will only serve flights under three hours, Teerapol revealed that long-haul destinations were not out of the question in its future, and he said the two could complement one another. “When you talk about Thai Airways International, what do you think of? Luxury and tradition. The passengers are old money and are used to flying traditional carriers; we will continue to serve them very, very well. But Thai Smile will serve the younger generation who have their own definition of good service, people who are smart and looking for value for money.” Teerapol has also confirmed that Thai Airways has not ceased its efforts in establishing a low-cost carrier despite the collapse of its Thai Tiger plan (see story here). An announcement on that front, he continued, would be made within months. Business Traveller Asia-Pacific has been invited to board Thai Smile's historic delivery flight. Stay tuned for a review. Reggie Ho
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