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Thai Smile focuses on turning around unprofitable Thai Airways routes as new AOC is secured

Analysis

As Thai Smile completes a transition from Thai Airways unit to subsidiary, the regional carrier assumes a mission to improve the group's profitability rather than expand the group's network. Thai Smile is adding seven A320s in 2014 for a total of 17 aircraft with virtually all of the capacity to be deployed on existing Thai Airways routes.

The Thai Airways Group used Thai Smile to launch eight new international routes in 2013. But only one of these routes is still operating, with four cancelled and three temporarily suspended.

Thai Smile has redeployed the capacity to take over a mix of domestic and international flights that had been operated by Thai Airways. More Thai Airways flights, primarily domestic but some international, will be handed over to Thai Smile in the coming months as Thai Airways' mainline fleet shrinks.

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