Thai Airways International (THAI), Thai Smile and Nok Air are to join forces and rearrange their flight schedules in a bid to take a bigger share of the domestic air service market.
Suraphon Isarangkura na Ayudhaya, THAI’s acting executive vice-president, said the three airlines will meet next week to work out strategies for competing with other major budget airlines, including Air Asia, based at Don Mueang airport.
The meeting will discuss issues including flight schedules, how to avoid duplication on routes and ways to boost ticket sales.
Thai Smile, THAI’s sister airline, has plans to increase passenger numbers by selling plane tickets through 7-Eleven convenience stores, Mr Suraphon said.
It is also planning to work with commercial banks on sales promotions targeting credit card holders.
However, THAI Smile chief executive Woranate Laprabang said the airline will not cut ticket prices to compete with other budget carriers.
This is because it wants to maintain its “light premium” image of providing services to the same standard as THAI but at a lower cost.
Thai Smile’s ticket prices are currently about 15-20% higher than those offered by budget airlines.
In a bid to increase its share of the domestic aviation market, Thai Smile this week began relocating flights on three routes to Don Mueang. The routes are Don Mueang-Chiang Mai, Don Mueang-Khon Kaen and Don Mueang-Phuket.
Mr Suraphon said passenger occupancy on the routes increased from an average 70% per flight at Suvarnabhumi to 90% per flight at Don Mueang on the first day of operation yesterday.
“We’re going in the right direction,” he said.
The airline plans to relocate all of its operations to Don Mueang by October.
Mr Woranate said Thai Smile also hopes to be the first budget airline to offer passengers the use of an airport lounge.
The room, which is being built on a budget of more than 15 million baht, is expected to open its doors within the next two months, he said. Thai Smile and THAI’s share of the domestic aviation market dropped to 29.3% last year, down from 33.7% in 2012.
THAI, which offers regional and domestic routes connecting with its medium- and long-haul flights, is also struggling with financial troubles.
Despite this Mr Suraphon said the end of the political turmoil should see a decrease in losses. The business expects to lose 10 billion baht this year, down from 12 billion baht in 2013, he said.