Thai Airways International (TG, Bangkok Suvarnabhumi) is planning to transfer its remaining fleet of five A320-200s to its regional subsidiary Thai Smile (Bangkok Suvarnabhumi) by the end of the year CAPA has reported.

The move will allow Thai Airways Int'l to transition to a widebody-denominated fleet once its last two B737-400s are retired next year, the report added.

In all, CAPA says the transition will reduce the cost of A320 operations and support Thai group’s overall efforts to return to profitability. Mainline A320 operations are cost prohibitive because pilots there are paid mainline salaries as compared to their counterparts at Thai Smile which, although not an LCC, has a much lower cost structure.

Thai Smile operates fifteen A320-200s on flights to thirteen destinations in Thailand, Myanmar, and Macau.