Thai Airways chairman Ampon Kittiampon expressed (25-Apr-2012) his determination to return the carrier to profitability in 2012 following a THB10 billion (USD322 million) loss in 2011. Speaking at the airline's annual shareholders meeting, Mr Kittiampon said the airline will not pay a dividend for 2011 due to the loss. Thai Airways is attempting to turn its operation around in 2012 with the “introduction of aggressive strategies” including the launch of low-cost subsidiary Thai Smile on 07-Jul-2012. Non-core areas of the airline will be in focus in 2012 including the airline’s catering and ground services operations. Mr Kittiampon stated he expects Thai Airways’ net profit to reach THB6 billion (USD194 million) in 2012. [more - original PR]
Thai Airways chairman determined to return airline to profitability
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Thai Airways should also examine better integration of Thai Smile, following the model used by Singapore Airlines (SIA) with its full service regional subsidiary SilkAir. The current setup, including separate reservation systems and sales teams, is far from ideal and must be improved in order for the Thai Airways Group to close the gap with the SIA Group in key markets such as China, India and ASEAN.
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Thai Smile plans to launch several new international destinations within Southeast Asia by the end of 2016. The new Thai Smile routes will boost the Thai Airways Group’s ASEAN network from 12 to 18 international destinations, while increasing capacity to some existing destinations which will be served by both brands.
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