Thai Airways regional connectivity Pt 2: Thai Smile international expansion is a strategic necessity

Thai Airways' regional full service subsidiary Thai Smile is expected to accelerate international expansion over the next year as Thai Airways transitions to an all-widebody fleet. Adjustments in the group's dual brand strategy are also possible as Thai Airways and Thai Smile could benefit from much closer integration.

Thai Smile currently only operates four international routes and allocates 90% of its seat capacity to the domestic market. However, the airline is poised to take over Thai Airways' four remaining international narrowbody routes and should be used to expand the group's presence in secondary cities in China, India and ASEAN.

This is the second part of a report on the Thai Airways Group's regional international network and strategy. The first part looked at how the group has fallen behind its rivals in Southeast Asia - particularly the Singapore Airlines Group - in improving regional connectivity. In this second part CAPA focuses on the strategy for Thai Smile and how the Thai Airways group could finally start to use Thai Smile to bolster regional connectivity.