Closer cooperation between budget airline Thai Smile and its parent Thai Airways International (THAI) is likely to help boost the low-cost carrier's operating results this year, according to THAI president Sumeth Damrongchaitham.
Mr Sumeth was made the chairman of Thai Smile Airways' board in January in a bid to help tackle the airline's losses and boost its revenue.
According to him, Thai Smile has pursued a marketing drive since February, including the integration of products and sale services between the two carriers.
Thai Smile has been positioned to cater to the regional market, he said, adding passengers from long-haul flights organised by THAI can transfer to Thai Smile to travel to regional destinations.
"I believe Thai Smile's operating results will become markedly better this year," said Mr Sumeth. He said the airline's operating performance was good in the first quarter of this year and looking strong in Q2.
Thai Smile and THAI have worked together to merge their administrative work to ensure there would be no overlap of units between the two airlines, ranging from marketing, finance, human resources to training, he added.
Thai Smile maintains full authority over its air services in line with aviation rules, Mr Sumeth said. The administrative merger will result in smoother management but the same operational direction. Efforts to shore up Thai Smile's revenue are also meant to boost the income of THAI.
THAI is struggling to deal with losses, despite getting these down from 2.11 billion baht in 2017 to 11.6 billion baht last year.
Prapas Kong-Ied, director-general of the State Enterprise Policy Office, has said jet purchases by THAI are a top priority as part of the state enterprise's rehabilitation.
Mr Sumeth said THAI plans to seek cabinet approval this month either to buy or lease 38 new aircraft. The first stage concerns 31 planes, which will replace older parts of the fleet within five years. Seven more will arrive in phase two, he said.
The national airline was also studying new routes to increase its income. Its management will ask the airline's board to approve a new Bangkok-Sendai (Japan) service for November, Mr Sumeth said.
The company is undergoing organisational restructuring to boost centralisation and enhance its managerial effectiveness, he added.
