There was a piece on the other day on Nation or Bangkok Post about a new airline that Thai is going to launch with Nok sometime next year. Thai owns the recently launched Thai Smiles as well as 49% off the Nok.
I am really confused about this development. Is Thai Smiles supposed to be something like Silk Air? Nok equals Tiger? For this fourth airline are they just continue copying Singapore Airlines and launching a Scoot copy or what?
Creole Spirit
Jul 6, 12, 2:25 am
About one year ago there were serious plans to launch a joint low cost airline in coop with SQ - but these had been given-up.
But find the article, that holtju2 refers to, below in my next threat......
BKKROP
Jul 6, 12, 6:25 am
There was a piece on the other day on Nation or Bangkok Post about a new airline that Thai is going to launch with Nok sometime next year. Thai owns the recently launched Thai Smiles as well as 49% off the Nok.
I am really confused about this development. Is Thai Smiles supposed to be something like Silk Air? Nok equals Tiger? For this fourth airline are they just continue copying Singapore Airlines and launching a Scoot copy or what?
My take on it is that it will be a Scoot copy, and will concentrate on particular destinations. Scoot will take you from the surf and sand playground of Gold Coast in sub tropical Australian, through to Singapore onto Bangkok. Smiles will show you around Thailand, through Indochine and over to Macau, thus getting yo to Hong Kong through the back door. I love the idea, Thailand is poorly promoted, what I see in myramar and Cambodia I keep reminding people I can see in Thailand, Smiles would be a great vehicle to push this great country. It is a young persons airline though, I have just finished a couple of weeks of budget flying, the latest bringing us into HKG. Flying 3 and 4 abreast, with knees hard up against tqhe seat in front, lining up for luggage, no lounge facilities or fast tracks, old legs and backs do not hold up. I can' t even say it was fun doing it, I am glad I did, but not for me
transpac
Jul 6, 12, 8:13 am
Thai Smile, "the new light premium regional sub-brand of Thai Airways International". If this follows the Cola nomenclature can Thai Zero be far behind? ;)
The Nation July 4, 2012
by Bamrung Amnatcharoenrit
"THAI to launch regional budget carrier in 2013
National carrier Thai Airways is working on plans with its sister budget airline Nok Air to launch a new low-cost airline by the middle of next year, with a focus on the regional market.
Chokchai Panyayong, acting president of Thai Airways International Plc (THAI), said yesterday that Nok Air has hired a consultant to conduct a feasibility study for the airline's launch, with the findings expected to be finalised by the end of this month. After this, discussion over possible business directions between the two firms will kick off.
Chokchai is also THAI's executive vice president for strategy and business development.
Under the plan, THAI would form a joint venture with Nok Air with registered capital of Bt200 million. THAI would hold a majority stake in the company.
The name of the new airline has not been finalised, but it will avoid the word 'Thai' to give it a more international image, especially within Asean. The routes will cover other countries in the region, not only Thailand.
Once up and running, it will be the third airline operated by THAI in addition to flagship carrier Thai Airways. THAI Smile will be launched officially this Saturday with its first flight to Macau from Suvarnabhumi Airport. THAI also holds a 49-per-cent stake in Nok Air.
Having a low-cost regional airline is expected to strengthen THAI's market position by capturing passengers in every segment ahead of the implementation of the Asean Economic Community (AEC) in 2015.
The launch of the new airline brands follows a business model pioneered by Singapore Airlines Limited, which operates the city-state's flagship carrier, plus Silk Air and two low-cost airlines - Scoot and Tiger Airways. Scoot focuses on medium and long-haul destinations, while Tiger flies to regional destinations.
THAI's new airline will adopt a pricing strategy to compete head-on with AirAsia, Chokchai said, adding that the launch would directly benefit consumers by giving them more choice. He was confident there was room for growth in the market, despite the rising number of low-cost airlines. In Asia, this market is still small compared to Europe and the US, where it has been established for a long time, he said. Passengers flying low-cost airlines make up 35-36 per cent of the total air-travel market.
A source in the aviation industry, who declined to be named, was concerned about the plan for a new THAI-operated carrier, saying it could lead to overlapping destinations for THAI and its subsidiaries.
Tassapon Bijleveld, CEO of Thai AirAsia, welcomed the move and said the market was big enough for new players, pointing out that Asean's 600-million-strong population would be combined into a single market in 2015 under the AEC.
"Success in the market will depend on ability,'' he said, adding that he was confident that AirAsia's strong brand and practical marketing strategy would allow it to keep its market share. Currently, the firm depends on head-on price competition with other players to protect its business.
THAI is struggling to emerge from a period of heavy losses. Last year, the firm posted a Bt10-billion loss. While it expects to earn Bt6 billion in net profit this year, and posted first-quarter net profit of Bt3.6 billion, it expects to see losses in the second and third quarters. In the first five months of this year, net profit missed its target of 50 per cent growth.
Aussie_flyer
Jul 6, 12, 12:27 pm
Why they don't just stick with the Nok Air brand and use that as their budget carrier I don't understand. Thai/Thai Smile for mainline and regional leisure routes and NokAir as a budget carrier. sounds fine to me. Why make it more complicated?
pansted00
Jul 8, 12, 6:12 am
Why they don't just stick with the Nok Air brand and use that as their budget carrier I don't understand. Thai/Thai Smile for mainline and regional leisure routes and NokAir as a budget carrier. sounds fine to me. Why make it more complicated?
I bet you the TG management probably doesn't have a coherent, credible answer to your question, other than : Why not ?
Creole Spirit
Jul 20, 12, 2:58 pm
I bet you the TG management probably doesn't have a coherent, credible answer to your question, other than : Why not ?
Bangkok ost article published 19/07/2012:
"Nok cool to Thai's latest plan"
A plan to create a regional low-cost carrier (LCC) spearheaded by Thai Airways International to capture the fast-growing budget travel market is unlikely to get off the ground as quickly as the flag carrier may wish.
The management of Nok Air, 49% owned by THAI and seen as the potential partner, seems less than enthusiastic about the planned venture given the high risk associated with airline businesses these days.
Chokchai Panyayong, THAI's acting president, told reporters on July 3 that the proposed discount airline may take to the skies a year from now. However, Nok management believe the plan should wait.
The venture warrants more in-depth analysis of the business model and market environment, as well as prudent consideration, said sources who are familiar with the issue and spoke to the Bangkok Post on the condition of anonymity.
Nok Air management want to be certain that both THAI and Nok Air have all the supporting resources, especially management talent, ready to support the new airline. Nok also favours a more cautious step-by-step approach.
According to Mr Chokchai, THAI and Nok Air were due to receive a feasibility study for the proposed carrier, reportedly conducted by a consultancy known as International Routing, by the end of this month.
But sources suggested the study is preliminary in nature and probably not sufficient to support a prudent business decision.
The main aim of the regional airline would be to counter the dominance of AirAsia, Southeast Asia's largest LCC, especially in Thailand's neighbouring countries.
The proposed early launch of the regional carrier may also conflict with Nok Air's plan to resume international flights, probably next year, initially from Bangkok to southern China.
"Resuming international flights is pretty much preoccupying the minds of Nok Air's senior management," a source said. "That seems to be the top priority for Nok Air which wants to consolidate its own resources for that."
Nok Air has been concentrating on expanding its business at home since 2008 when it suspended its loss-making international flights (to Vietnam and India) as part of a turnaround programme that has shown positive results.
THAI has been trying for years to bring Nok Air more closely under its wing. Last year it raised its stake in Nok Air to 49% by acquiring the 10% held by state-owned Krung Thai Bank.
THAI executives have talked about having Nok Air holding 51% in the proposed regional LCC, which is seen as a replacement for the doomed venture THAI attempted with Singapore's Tiger Airways.
From the perspective of THAI, yet another regional LCC could create a problem for the parent airline already beset by intense global competition and rising costs, and the need to ensure that THAI Smile, its newly created "light premium regional sub-brand", stays afloat, they said.
THAI Smile on July 7 launched twice-daily flights between Bangkok and Macau, using a 174-seat Airbus A320. It will add two domestic routes over the next few months.
The new airline is scheduled to take delivery of 11 narrow-body A320 jets by mid-2015, and that means a lot of routes need to be be created to absorb the new aircraft capacity.
TPJ
Jul 21, 12, 10:52 pm
I bet you the TG management probably doesn't have a coherent, credible answer to your question, other than : Why not ?
I believe a correct answer would be: my cousin/son/brother/nephew wants to be an airline CEO, so I will create yet another carrier...