Thai Airways to use Thai Smile to fight back at AirAsia and rapid LCC growth in Thailand

Thai Airways' new regional unit, Thai Smile, will initially compete primarily against Thai AirAsia on domestic routes when it launches services at the middle of next year. While Thai Smile will offer some frills and connect with Thai Airways and other Star Alliance carriers, the unit's lower cost base is designed to compete more effectively against Thai's largest local rival.

The Thai Airways board late last month approved the brand name Thai Smile, replacing Thai Wing, which has been the provisional name since the board initially approved in May-2011 the creation of a new regional airline unit. Thai Smile is now aiming to launch domestic services in Jul-2012 from a base at Bangkok Suvarnabhumi, following a hybrid model that is part LCC and part full-service regional carrier.