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Thai Airways uses Thai Smile to expand in China and Laos but domestic focus remains

Analysis

Thai Airways' regional unit Thai Smile is planning major expansion in 4Q2013 including four new international destinations, three of which will be new to the group's network. The carrier is also increasing capacity on three of its four current international routes but recently dropped three international routes, highlighting some early mistakes in its network.

Thai Smile remains primarily a domestic carrier. It will continue to allocate nearly 80% of its capacity to the domestic market as it adds two domestic routes and expands on several of its seven existing domestic routes.

The expansion is made possible as Thai Smile takes six aircraft over the next five months, doubling the size of its fleet to 12 A320s. Four of the aircraft will be delivered in 4Q2013 with two more to come in early 2014.

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