Upstart Airline Taking Over Krabi/Surat Thani Routes

What Thai Airways is doing is shifting some of the domestic flights that have been served with either too large aircraft's or not enough frequency. The Light Premium (LP) will basically offer flights with a slightly scaled down business class and fewer amenities that on a Thai Airways Flight; however the passenger still will be able to collect miles (Royal Orchid and Star Alliance) as well as not pay and arm and a leg for things that the LCC and ULCC are known for. Thai Airways should have gone that route on many of their domestic and some regional flights a long time ago. Any flight with in 60-90 minutes (with the exception of flights from BKK to CNX and HKT)should be performed by Thai Smile. Better fly twice a day with an A320 than once a day with and A300! Sometimes more frequency is what is needed and not larger aircraft's.
Flights to VTE, LPQ, RGN, PHN, REP,HAN, SGN for exsample are all destinations that can and maybe should be served with an A320 rather than wide body aircraft's.
In the end it is economics and logic!