Charamporn Jotikasthira, the chief executive officer of Thai Airways International (TG, Bangkok Suvarnabhumi), will this week engage his counterpart at Thai AirAsia (FD, Bangkok Don Mueang), Tassapon Bijleveld, over the proposed purchase of a 20% stake in the budget carrier.
The Bangkok Post reports the meeting was proposed by Deputy Prime Minister Somkid Jatusripitak as part of government's efforts to increase synergies between the two firms. Bangkok reportedly aims to use tie-up to enhance Thai carriers' presence on routes to secondary cities in Cambodia, Laos and Myanmar, and to make Thailand a regional tourism hub.
“I am open to discuss," Tassapon said. "However, I have to take a look at the detail of the deal first. It’s not only about share sale but also about the management control. It may be too soon to say anything now, but I may have a discussion with Thai Airways’ president next week."
Thai Airways Int'l maintains a 39.2% stake in another Thai budget carrier - Nok Air (DD, Bangkok Don Mueang) and fully owns Thai Smile (Bangkok Suvarnabhumi) which also competes with Nok and AirAsia on many domestic markets.
For its part, Thai AirAsia is a joint venture between the publically-listed Asia Aviation with 55% and AirAsia Investment (AAI) with 45%. It currently operates a fleet of forty-six A320-200s on flights to fifty-two destinations scattered across Thailand, China, Cambodia, India, Indonesia, Vietnam, Malaysia, Laos, Myanmar, Hong Kong, and Singapore. It is currently the largest carrier to operate out of Bangkok Don Mueang with 40.26% of the airport's weekly capacity.
