It was a regional carrier operating a small network of domestic and international services, as well as charter flights.
It was one of several new carriers formed to take advantage of the deregulation of the air transport industry in Thailand and the Thai government's "Open Skies" policy, which came into effect on 1 September 2000.
Air Andaman's services included a domestic route between Bangkok and Phuket and flights to Singapore.
In March 2006, Thailand's Civil Aviation Department said it was withdrawing the airline's license.
The airline's major shareholders were Atichart Athakravi and Prathip Boonprasom, who in March 2006 was planning a comeback with German investor Hubert Joseph Trunser and Swiss investor Bernan Luthee in a joint venture called Asian Aerospace Service.