Thai Smile shuts down after a decade of losses
Thai Airways completes legal dissolution of its subsidiary
After over a decade of struggling with continuous financial losses, Thai Airways International (THAI) has officially dissolved its wholly owned subsidiary, Thai Smile Airways.
The decision marks the end of the budget airline’s operations, bringing a turbulent chapter to a close. The dissolution was officially announced to the Stock Exchange of Thailand (SET) on June 5, following a resolution passed during the 14th Executive Plan Administrator Meeting on May 8.
THAI confirmed that the legal process to dissolve Thai Smile Airways Co., Ltd., in which it held a 99.99% stake, has been completed with the Department of Business Development (DBD) under the Ministry of Commerce. While the subsidiary’s closure will have no impact on the national airline’s ongoing operations, the legal liquidation proceedings are set to continue accordingly.
Launched in 2013, Thai Smile was created as part of Thai Airways’ strategy to offer a low-cost carrier for domestic and regional flights.
Approved by the government at the time under President Piyasvasti Amranand, the airline began operations in 2014, with an initial registered capital of 1.8 billion baht.
Thai Smile’s debut was marked by the introduction of 10 domestic routes from Bangkok’s Suvarnabhumi Airport, operating under the airline code WE.
However, despite the initial optimism, the airline’s journey was plagued by financial struggles. Thai Smile’s final flight, WE268 from Hat Yai to Bangkok, took off on December 31, 2023, marking the end of its troubled run.
Over 12 years, the airline accumulated more than 20.9 billion baht in losses and reported a negative shareholders’ equity of around 9.7 billion baht. Some of its most notable losses included 2.08 billion baht in 2016, 3.27 billion baht in 2020, and 4.25 billion baht in 2022, reported Travel Trade Journal.
These persistent financial setbacks led to the decision to shut down the airline, a costly lesson for THAI as it continues to undergo its financial restructuring process. While the move ends an era for Thai Smile Airways, the parent company will now focus on recovering from its losses and restructuring its operations.
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