After a strong first quarter, Thai Airways may look at setting up a new budget carrier to tap into the no-frills sector, announced by Thai Airways president Piyasvasti Amranand last week.
Focusing on profitable destinations in Asia while reducing some loss making routes in Europe, the flag carrier faces regional competition from rivals like Singapore Airlines and Cathay Pacific, according to Reuters.
Mr Amranand said in an interview the airline was joining with Nok Air to study a new ultra low cost airline.
"Nok Air will focus on domestic routes and we need another one to tap strong demand from this sector.”
As a part of a revamp after losing market share in Asia, the airline still aims to launch its mid-range Thai Smile airline on 7 July.
Up a massive 500 percent from last year, rising passenger numbers and yields helped Thai Airways make a net profit of THB3.6 billion for the period January to March.
"We are confident we will achieve our profit target of THB6 billion baht this year after a strong performance in the first quarter," Mr Piyasvasti said.
Not sure if the airline will make profit in the usual low season that falls in the second quarter, the president is confident of good earnings in the third quarter.On track to take delivery of three Airbus A380s in late 2012, Thai Airways aims to add another three planes in 2013, expanding its total fleet to 109 planes in the next seven years.
Source = e-Travel Blackboard: K.W