Upstart Airline Taking Over Krabi/Surat Thani Routes

Thai Airways International's offshoot Thai Smile will take over the existing TG routes between Bangkok to Krabi and Surat Thani.
The airline will use Airbus A320 aircraft to service the routes.
I was reading an article in the Phuket Gazette recently which asked the question what tier of carrier Thai Smile was – low-cost (LCC) or ultra-low-cost (ULCC)?
Apparently neither as the airline said they were classed as Light Premium which I make to be LP?
It seems the bottom end of the airline market is suffering from an identity crisis much as the hotel sector does with budget, limited service, economy and just downright cheap accommodation.