Thai Airways drops plans for ulta low-cost carrier

Thai Airways cancelled (24-Jul-2012) plans to establish a new ultra low-cost carrier. The group's medium-term strategy has included for the last few years a new ultra LCC, which was intended for the regional international market. Originally the new LCC was to be a JV between Thai Airways and Singapore's Tiger Airways but the Thai Tiger project was dropped last year. In recent months, Thai Airways looked at establishing the new carrier with Nok Air, a domestic LCC which is partially owned by Thai Airways. However Nok CEO Patee Sarasin told CAPA the Thai Airways board has decided not to proceed with the planned ultra LCC. Mr Patee says Nok, which is planning to launch international services in early 2013, will try fill the void in the Thai Airways Group strategy created by the decision not to proceed. [more - CAPA Analysis]