THAI flies solo on LCC
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Thai Airways International (THAI) will form its own regional low-cost carrier, after the long-planned joint venture Tiger Airways was finally scrapped. The national carrier said in a recent statement that its board of directors had “approved the process to establish a THAI regional airline under the THAI sub-brand”. According to the national carrier, the new regional airline is intended to operate with “high efficiency, with flexible and effective management” – essentially meaning a low-cost business model.
THAI had expected to launch Thai Tiger Airways in the first quarter of this year. The move was fiercely opposed however, by Thailand’s Ministry of Transport which argued that THAI should join forces with its existing domestic low-cost subsidiary, Nok Air.
The Bangkok Post reported THAI’s Chairman, Ampon Kittiampon as saying that the new entity is likely to be called ‘Thai Wings’, and that it is likely to launch commercial services within 12 months. THAI said while the regional carrier would be offer many elements of a full-service airline, such as high baggage weight allowance and FFP mileage accrual, Thai Wings would also see “price differentiation” and would operate routes with greater frequency. Initially it will operate a fleet of 11 narrow-body aircraft on short-haul routes.
“The regional airline aims to take advantage of the rapidly increasing number of customers looking for value, as well as to prepare for expanding the market when ASEAN air liberalization takes effect,” a Thai statement said.
Tiger Airways meanwhile, appears to have switched its sights to Indonesia, having agreed to acquire a 33% stake in struggling PT Mandala Airlines.
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