In a move that closes a high-flying yet rocky chapter, Thai Airways International (THAI) has finally grounded its low-cost wing, Thai Smile Airways. After facing over a decade of persistent turbulence in the form of financial losses, the decision to dissolve this subsidiary was officially made on June 5. This announcement came hot on the heels of a resolution from the 14th Executive Plan Administrator Meeting that took place on May 8. The closure was reported to the Stock Exchange of Thailand (SET), signaling a strategic turnaround for the parent airline.
Founded in a bid to offer affordable domestic and regional flights, Thai Smile Airways officially took to the skies in 2014. Envisioned under the leadership of then-president Piyasvasti Amranand, this budget carrier took off with a registered capital of 1.8 billion baht. Operating from Bangkok’s Suvarnabhumi Airport and marked by the airline code WE, it debuted with ten domestic routes that promised to paint the skies with the smile of affordability.
Yet, despite the promising inception, Thai Smile was caught in an unending whirlpool of financial woes, racking up staggering losses year after year. Its final flight, WE268, perfectly timed its touchdown on the last day of 2023, was essentially a closure for a venture that had failed to carve a profitable niche over its 12-year journey. By the time the final boarding announcement echoed through the airport, the airline had collected losses amounting to a staggering 20.9 billion baht, compounded by a negative equity of approximately 9.7 billion baht. Standout losses were notably recorded at 2.08 billion baht in 2016, swelling to 4.25 billion baht in 2022, a painful reminder captured by the Travel Trade Journal.
The end of Thai Smile Airways was a hard but necessary decision—a pricey lesson in aviation economics for THAI as it treads on with its financial restructuring blueprint. Though the curtains have fallen on Thai Smile, THAI, the parent company, steers its focus toward recalibrating operations and recovering its turbulent financial standing.
Meanwhile, throughout the frequent flier community and onlookers alike, there’s a mix of nostalgia and a sigh of relief. Thai Smile had flown people to countless destinations, albeit on economically unsustainable wings. The hope now is that this withdrawal will help Thai Airways soar to new altitudes, minus the baggage of continuous losses.
As Thailand’s business scene buzzes with fresh headlines and myriad challenges, from criminal sprees to royal impersonations, THAI’s saga adds another layer to the dynamic tapestry of the national and business narrative. Just like the evolving climate of Thailand, which leaves provinces ‘singing in the rain’, or how the restaurant industry battles over sukiyaki prices, every player, whether in aviation or any other industry, chases that equilibrium between soaring ambitions and sturdy ground.
Undoubtedly, this move by THAI reflects a broader lesson in managing expectations, pivoting strategies, and knowing when to wave goodbye despite clear skies ahead. As the airline industry at large navigates the headwinds of economic challenges, Thai Airways braces itself for a renewed flight path, leaving behind a trail of summative experiences garnered from the now-historic Thai Smile Airways. Here’s to hoping that Thai Airways can, once again, lift off and rise beyond the clouds of fiscal adversity.
It’s a shame to see Thai Smile go, but it’s probably for the best given their financial struggles.
I agree. They were bleeding money and THAI needs to focus on stabilizing.
True, but it’s sad for the employees who are losing their jobs during this transition.
Why did they even start it in the first place? Another poorly thought out airline gimmick.
I think this is a smart move by THAI. Their priority should be getting out of debt, not trying to run a failing low-cost carrier.
But what happens to all of us who relied on their cheap flights for travel?
There will be other low-cost options, or maybe this will push competitors to offer better deals.
This closure won’t affect most frequent travelers. It was inevitable.
I think it’s a wake-up call for other budget airlines as well!
Sad to see another airline fall victim to the harsh realities of business.
Thai Airways is smart to cut its losses with Thai Smile. The brand needs to rebuild its reputation and financial health.
What a costly mistake! 20.9 billion baht in losses is huge for any company.
Yeah, looks like they should have pulled the plug much earlier.
I wonder if Thai Airways will create another low-cost airline in the future, maybe they’ll learn from this.
Hopefully they won’t make the same mistake twice!
Yeah, wishful thinking perhaps, but airlines always seem to try and rebrand when things go wrong.
I flew Thai Smile a few times, and honestly, the service wasn’t anything special. They won’t be missed by me.
I felt the same. Nothing unique to keep them afloat.
Thai Smile’s failure is a case study in poor strategic alignment within a conglomerate.
Feels like the end of an era. I hope Thai Airways can bounce back.
Me too. It will be interesting to see how they tackle the broader market challenges.
Long-term sustainability over short-term gains; it’s about time they realized it.
Can’t blame Thai Airways for wanting to stop a leaking ship. I bet we’ll see improved services soon.
Hoping this is the start of a revival for Thai Airways.
Revival needs more than just cutting losses. Let’s see if their strategies hold up.
Another example of big corporations being too ambitious with no plan B. Will they learn?
Some leaders just have their heads in the clouds, metaphorically speaking.
Exactly. Well, the market doesn’t forgive easily.
As much as it’s a loss for affordable travel, a more stable Thai Airways is better for the country.
Couldn’t agree more. National carriers have larger roles to play than just offering low fares.