Nok Air (DD, Bangkok Don Mueang) along with Thai Airways International (TG, Bangkok Suvarnabhumi) and its Thai Smile (Bangkok Suvarnabhumi) subsidiary will this week hold talks centring on how best to respond to the rising threat of low cost carriers - Thai AirAsia (FD, Bangkok Don Mueang) and Thai Lion Air (SL, Bangkok Don Mueang) in particular - in the Thai domestic market.
Thai's acting executive vice-president, Suraphon Isarangkura na Ayudhaya, told the Bangkok Times that the meeting will discuss issues including strategies to boost ticket sales as well as the streamlining of each other's flight schedules so as to avoid route duplication.
Thai Smile recently took the initiative and announced plans to shift its operations from Bangkok Suvarnabhumi to Bangkok Don Mueang by October in a move that will allow it to better compete with Thai AirAsia. Operating out of Don Mueang will benefit Thai Smile enormously through lower operating costs as well as access to Thai's MRO and catering facilities at the airport.
Nok Air is currently acting as a temporary ground handling agent for Thai Smile at Don Mueang given the latter's short notice.
"THAI Smile and Nok Air will not compete directly with each other [out of Bangkok Don Mueang], but instead complement and supplement the other by avoiding duplication in routing," the report said.
However, a Nok Air spokesman has denied any plans to coordinate schedules or sales and marketing activities with Thai Smile as suggested by Thai Airways leading to doubts the talks will succeed.
