Thai Airways to establish new regional wing

Thai Airways' Board has given in-principle approval to plans to establish a new regional airline. The carrier, Thai Wing, will commence domestic and international services in Mar/Apr-2012.

Thai Wing will operate short-haul services with five leased B737s and two other leased aircraft in its first year, with the fleet expected to reach 11 within three years.

Thai Airways, which signed an alliance with Tiger Airways last year to form a 51:49 joint venture LCC, said the launch of Thai Tiger had been delayed from this month until July/August 2011.

Thai Airways' shares fell 0.7% on Friday, while Tiger Airways shed 1.3%.

Selected APAD daily share price movements (% change): 23-May-2011