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  • Thailand’s Nok Air extends time to file restructuring plan

    Thailand’s Nok Air extends time to file restructuring plan

    Nok Air has said in a stock market filing that it has been granted an additional month to file its final restructuring plan, with the new deadline falling on May 15, 2021.

    “This extension is needed to collect additional information required in order to prepare a complete and comprehensive rehabilitation plan to ensure that it will be appropriate for the airline business during the COVID-19 pandemic situation and will receive the approval at the creditors’ meeting,” the low-cost carrier said.

    The airline filed for restructuring in July 2020 and was officially admitted to the procedure on December 15, 2020. According to Thai law, it was initially granted three months to submit a final rehabilitation plan to the Central Bankruptcy Court. It already extended the deadline once, through April 15, 2021. The second extension is also the final one permitted.

    Nok Air underlined that in addition to complex and ongoing negotiations, the previous deadline would have fallen during the celebration of the Thai New Year (Songkran).

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  • Nok Air suspends Guwahati-Bangkok flights from January 20

    Nok Air suspends Guwahati-Bangkok flights from January 20

    As per reports, Nok Air is expected to resume its operations from April 12, 2020.

    The airline has cited ‘operational reasons’ behind its decision to suspend the flights.

    Nok Air, which is a subsidiary of Thai Airways International, had operated its flights in the Guwahati-Bangkok route twice a week.

    It may be mentioned that Nok Air, which had started its flight operations from Guwahati to Bangkok in September last year, had suspended its operations just four months after airline SpiceJet has suspended the Guwahati-Dhaka direct flight service.

    The reason behind the suspension of the ambitious Guwahati-Dhaka flight service was due to not getting the desired number of passengers.

    Due to poor business operations of the flight service, SpiceJet had first reduced the frequency of the flight service from daily to twice a week.

    However, the new outcome of the flight service still being poor, SpiceJet had finally decided to suspend its operations.

    At present, only two international flights would remain operational from the Guwahati airport and that is Druk Airlines’ flights from Guwahati to Singapore and Guwahati to Paro.

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  • Thailand’s Nok Air seeks to raise $73.5mn from shareholders

    Thailand’s Nok Air seeks to raise $73.5mn from shareholders

    Nok Air is seeking to raise THB2.22 billion bahts (USD73.5 million) from existing shareholders through a new share issuance, the Thai low-cost carrier said in a stock market filing.

    The Thai carrier’s Board of Directors proposed issuing 888,147,358 new shares nominally valued at THB1 (USD0.03) each. If the proposal is approved by an Extraordinary General Meeting on January 14, existing shareholders will be offered purchase rights to buy one new share per 3.5 existing shares. The purchase price has been set at THB2.5 (USD0.08) per share.

    The offering period will run from February 3 to February 7, 2020.

    Nok Air said it will allocate shares not taken up in the first round to any oversubscribing shareholders but it does not foresee allocating any shares to investors who are not shareholders at the moment.

    Simultaneously, the Board of Directors proposed decreasing the number of shares in circulation by 99,030,527 shares which were not sold during previous equity increases. This will result in a decrease of the total number of shares, equivalent to the registered capital, to 3,309,019,273 prior to the new issuance planned for early February.

    Nok Air is currently controlled by the Jurangkool family, with three of its family members controlling a combined 67.4% stake in the airline. Thai Airways International owns a 15.9% stake with the remainder held by small shareholders with less than 0.5% each.

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  • Nok Air gets new staff and planes

    Nok Air gets new staff and planes

    Loss-ridden budget airline Nok Air is recruiting pilots and flight attendants and will acquire two new planes to serve high-season demand as its rehabilitation plan shows positive effects, its chief executive Wutthiphum Jurangkool said on Wednesday.

    He said that the airline’s recruitment of about 800 new pilots and flight attendants is evidence that its rehabilitation plan has been effectively implemented and has strengthened its financial status.

    Apart from staff recruitment, the airline would acquire two new aircraft to add to its 22-plane fleet by the end of the year.

    Mr Wutthiphum added that Nok Air will launch direct service between Bangkok (Don Mueang) and Hiroshima, Japan. It has increased domestic flight frequencies from three to four daily on the Don Mueang-Buri Ram route and from four to seven flights a week on the Chiang Mai-Ubon Ratchathani route.

    Nok Air’s passenger load factor stood at 88% in the first half this year, down from 91% year-on-year because of the reduction in aircraft numbers from 28 to 22, he said. The reduced fleet saw flight and passenger volume in the second quarter drop by 10.3% and 8.18 respectively.

    Nok Air reported a loss of 470 million baht in the second quarter, down from a loss of 742 million in the same period last year, and a net loss of 751 million for the first six months, down from a loss of 774 million year-on-year.

  • Nok Air gets serious about turnaround

    Nok Air gets serious about turnaround

    Nok Air, a loss-ridden budget airline, has pledged to implement plans to revive its business, increasing income and overhauling flights to prevent delays that have damaged the carrier’s image.

    The turnaround is set to start in the final quarter this year, said chief executive Wutthiphum Jurangkool.

    He said apart from airfare, the airline plans to create additional revenue from value-added services by partnering with tourism operators such as hotels, car rental companies, department stores and tour agencies on domestic routes.

    To prevent flight delays, Mr Wutthiphum said the airline has invested in a home-based stock worth 100 million baht at Don Mueang airport to install spare parts for immediate use if needed. Spare parts from abroad take around three days to reach Thailand, which is the main reason for the delays, he said.

    “Nok Air’s home-based stock will not only speed up maintenance work, but also reduce maintenance expenses by 30% in the latter half of this year,” said Mr Wutthiphum.

    Rearranging flight schedules and adding spare aircraft to stand by in the morning or busy times should also help avoid delays, he said.

    “Even though the airline will reduce flight numbers and income by operating with only 22 aircraft, we must fix this urgent problem,” said Mr Wutthiphum.

    He said the airline is set to increase aircraft utilisation from red-eye flights to international destinations, aiming to use them for 12 hours of operation in the fourth quarter, up from 10-11 hours.

    In November, the carrier plans to launch a Bangkok-Hiroshima route. On Sept 21 it added a flight from Bangkok to Guwahati in Assam state, India. Other second-tier cities in China will be added to the airline’s expansion plans, said Mr Wutthiphum.

    He said Nok Air will not open new international routes to popular destinations to avoid price wars with other airlines.

    The Jurangkool family is the major shareholder of SET-listed Nok Airlines, holding about a 52% stake, while Thai Airways International holds 15.94%.

    Nok Air’s cabin factor stood at 88% in the first half this year, down from 91% year-on-year because of a lower number of aircraft, from 28 to 22. The reduced fleet saw lower volumes of flights and passengers in the second quarter by 10.3% and 8.18%, respectively.

    Mr Wutthiphum said Nok Air expects to expand its fleet with two new aircraft this year and at least two more in 2020.

    Nok Air reported a loss of 470 million baht in the second quarter, down from a loss of 742 million in the same period last year, and a net loss of 751 million for the first six months, down from a loss of 774 million year-on-year.

    On Thursday, the budget airline announced a partnership with Bangpakok 9 International Hospital, the Social Development and Human Security Ministry and Ruamkatanyu Foundation to support rescue operations in the flooded areas of Ubon Ratchathani province, while other affected provinces will be considered later.

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  • Nok Air launched direct flights to Hiroshima, Japan

    Nok Air launched direct flights to Hiroshima, Japan

    The first phase is charter flights which have begun on 1st and 5th May 2019. This route is one of the many of the Nok Air’s turnaround plan by looking for the potential routes. Now, Nok Air is available and intend to create an impressive experience for the passengers.

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  • Nok Air to cease flights to Nan

    Nok Air to cease flights to Nan

    Nok Air will end flights between Bangkok and Nan from April 18, leaving the province scrambling to convince another airline to take up the service.

    Nan airport general manager Ruangyuth Nittayanon announced on Thursday the airport had been advised by the budget airline of its decision to stop flying the route from April 18, after more than one year in operation. Nok Air did not explain the reason, he added. A check showed its website no longer allows bookings for Nan flights from April 18. Ticket prices to the province are shown only until April 17.

    The no-frills airline currently has two daily flights between Don Mueang and Nan. Terminating the service  leaves Thai AirAsia the only airline linking the capital and the northern province. Nok Air is operating at a loss and its financial situation is being closely watched by the Civil Aviation Authority of Thailand.
    Mr Ruangyuth said the airport had contacted the Airports Department to approach other airlines to fly to Nan to reduce the impacts on air travellers, tourism and business. He named Bangkok Airways and Thai Vietjet as possible options.

    With Thai AirAsia to be the lone airline on the route, the airport chief was concerned about the possibility of higher fares due to the lack of competition.
    The province and business operators in Nan will hold a meeting to approach other airlines to replace Nok Air when it ends the service, with the last flights on April 17.

  • Thai AirAsia says it will not buy shares in Nok Air

    Thai AirAsia says it will not buy shares in Nok Air

    Asia Aviation, majority shareholder of budget airline Thai AirAsia, said on Wednesday that it would not proceed with an acquisition of shares in rival carrier Nok Airlines, sending Nok’s shares down.

    Nok’s shares fell more than 12% and Asia Aviation’s prices slid nearly 3% in the morning trading session.

    Asia Aviation said in February that it was in talks to buy Nok shares, although Nok had said at the time that it was “not aware of any details in this respect”.

    Nok is 53% owned by the Jurangkool family, which also controls Thai Steel Cable PCL and unlisted auto parts maker Thai Summit.

    Intense competition among budget airlines has led to quarterly losses since 2015 for Nok.

    Asia Aviation owns 55% of Thai AirAsia, with the remainder held by Malaysia’s AirAsia Group Bhd.

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  • Nok Air launches international direct flights from Phuket to Chengdu

    Nok Air launches international direct flights from Phuket to Chengdu

    Nok Air launches the daily international direct flight, Phuket-Chengdu, aiming to offer passengers the most impressive travel experience Nok Air always commits itself to impress all travelers lifestyle. To offer Chinese passengers the best experience, Nok Air has just launched the new daily direct flight from Phuket to Chengdu, China, 7 flights a week (1 round-trip flight/day) starting from 4,000 baht with free of charge baggage allowance of 20 kilograms and free Royal Orchid Plus (ROP) mileage earning from THAI Airways.

    Nok Air also provides various routes to China which include Zhengzhou, Nanning and ‘Phuket-Chengdu’ as the latest one with more than 500,000 Chinese passengers in the last year.Phuket-Chengdu and Chengdu-Phuket tickets are available on www.nokair.com from October 8th 2018.

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  • Nok Air touches down at Mae Hong Son

    Nok Air touches down at Mae Hong Son

    Nok Air landed smoothly at Mae Hong Son Airport in a maiden flight that re-established the long-awaited direct air link between Bangkok and the northwestern city.

    The arrival of flight DD8214, operated by a 72-seat ATR72-500 turboprop, marks a new era for easy connection between the Thai capital and “the city of three mists.”

    Officiating the launch was Transport Minister Arkom Termpitthayapaisith, Mae Hong Son Governor Suebsak Aiamwijan, Nok Air CEO Mr. Piya Yodmani, Thai Airways International (THAI) Acting President Usanee Sangsingkeo and THAI Smile Acting Managing Director Chatchai Panyoo.

    The city was without direct service from Bangkok for decades mainly because of limited demand for both leisure and business travel.

    But with Nok Air’s newly-introduced services, at three flights a week, Mae Hong Son’s economy, particularly its high-potential tourism industry, will be given an impetus.

    The launch quickly responds to the Government’s recent directive to enhance access to the province whose economic and social development has been in greater focus, said Mr. Piya.

    The introduction was also made possible by cooperation extended by THAI and subsidiary THAI Smile which became code-share partners for the flight under the umbrella of THAI Group which the three carriers belong, he added.

    Subject to robust demand, Nok Air may step up the Bangkok-Mae Hong Son frequencies, now on Wednesday, Friday, and Sunday, on a daily basis, according to Mr. Piya.

    The ATR72-500 turboprop was chosen for the flights because it can operate on the shorter runway at Mae Hong Son airport.

    Mae Hong Son Governor Suebsak welcomed Nok Air’s decision to offer regular Bangkok-Mae Hong Son service for it would spur the province’s development, especially the tourism sector.

    “It would help spreading out tourism to the wider area of Mae Hong Son, rather just the current hotspot at Pai,” he noted.

    Last year, Mae Hong Son attracted 862,219 tourists with total spending of THB 4.17 billion.

    Nok Air CEO, Mr. Piya estimated Nok Air could bring in at least 20,000 tourists directly by air to the province this year.

    Access to Mae Hong Son by ground transport is a challenge, a mountain road that boasts 1,864 hairpin bends end-to-end.

    Nok Air will cover the distance from the Thai capital and Mae Hong Son in one hour and 50 minutes.

  • Nok Air to cut and reschedule flights to solve flight delay

    Nok Air to cut and reschedule flights to solve flight delay

    Nok Air airliner has decided to reduce the number of its flights to avoid the problem of flight delay and, at the same time, has put on standby two planes to be brought in from U-tapao airport in case there is a problem of plane malfunctioning, said Nok Air CEO Piya Yodmanee.

    Noting that turbulent weather is another reason for several flight delays, he made clear that Nok Air would not allow its planes to leave the airport in case of turbulent weather for safety sake.

    Due to smoke problem from forest fires which usually takes place in the morning for flights in northern provinces, he said the airline would reschedule the morning flights for the routes to Tak, Lampang, Mae Hong Son and Loei to the afternoon.

    However, during the Songkran festival, two more flights for the four routes will be added each day to cater to the increasing demand of travelers, said Mr Piya.

    Starting May until September, Nok Air will reschedule the timetable of some flights during the dry season and to cut down five flights a day during the period.

    Nok Air management on Friday (March 30) met with senior officials of the Civil Aviation Authority of Thailand led by Mr Chula Sukmanop at the CAAT head office to discuss Nok Air’s frequent flight delays which have attracted a lot of criticisms from domestic travelers.

    Mr Chula said flight delays were caused by a number of factors, including turbulent weather and congested air traffic.  He said Nok Air agreed to train a group of its staff who will deal with passengers in case of flight delays and to put on standby two planes which will be put into service in case of emergency.

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  • Thai low-cost carrier Nok Air pins turnaround on more China, India flights

    Thai low-cost carrier Nok Air pins turnaround on more China, India flights

    Nok Airlines Pcl, the struggling low-cost subsidiary of Thai Airway International Pcl, aims to turn around operations by growing international revenue with more flights to China and India, a top executive said on Monday.

    The carrier, which posted a loss of 1.85 billion baht ($58.95 million) last year, aims to increase revenue by 3 billion baht this year from 20.4 billion baht in 2017, by carrying 9 million passengers, 4 percent more than a year prior, Chief Executive Piya Yodmani said.

    He also said the carrier aims to increase revenue from international operations to 40 percent of its total from 20 percent a year earlier.

    Piya, who took over as CEO in September after the resignation of Patee Sarasin, said Nok targets aircraft utilization of 12 hours, up from 10.4 hours in 2017, with more red-eye flights and routes in China to boost earnings as Chinese tourist arrivals surge in Thailand.

    “We are waiting for approval to fly into three cities in India with the possibility of increasing routes there,” Piya said.

    Hotel and retail groups are among the main beneficiaries of a Thai tourism boom, while Thai airlines struggle with competition and fuel costs.

    Nok is deferring delivery of 8 Boeing Co 737-MAXs to next year through 2021 due to a “red ocean of competition,” Vice President Surachart Angkasuwan said.

    Tourism accounts for about 12 percent of Southeast Asia’s second-largest economy, with the country expecting 37.55 million arrivals this year, up 6.1 percent from 2017.

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  • THAI will not increase capital in Nok Air

    THAI will not increase capital in Nok Air

    Thai Airways International Public Company Limited (THAI) stated that THAI’s Board of Directors decided not to increase capital in Nok Air Public Company Limited (Nok Air), which lacks liquidity and needs additional funding to continue operations. Following the meeting on 12 April 2017, it was agreed that a Company representative would be sent to submit a vote on capital increase in Nok Air, which would open up opportunities for other shareholders to increase their shareholding. During this meeting, THAI’s Board of Directors did not yet decide whether or not to subscribe to new shares in Nok Air because a study had to be conducted on suitability and value prior to additional investment.
    On 21 May 2017, a THAI Board of Directors Meeting was held to consider subscription of new shares in Nok Air. THAI’s Board of Directors took consideration of the report prepared by the special task force that studied suitability and value for additional investment in Nok Air, given the Company’s current situation. With consideration to this factor, additional information, and opinions as well given that the transformation plan is still under implementation, THAI’s Board of Directors deemed that under the Company’s current situation it was not the right time to increase investment in Nok Air. Therefore, THAI’s Board of Directors concluded that the Company will not subscribe to new shares in Nok Air, regardless that the Company’s percentage of shares in Nok Air would eventually reduce.
    Even though there will be no subscription to new shares, the Company will continue to contribute as a shareholder and grant support for Nok Air’s eventual recovery and sustainable growth. A Company representative who is a member of Nok Air’s Board of Directors has been assigned by THAI’s Board of Directors to oversee and assist Nok Air through to successful completion of the transformation plan as soon as possible.
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  • Nok Scoot and Thai Airasia X receive AOC

    Nok Scoot and Thai Airasia X receive AOC

    Nok Scoot and Thai AirAsia X were yesterday announced to qualify for Air Operators Certificates (AOC) after both met the International Civil Aviation Organization (ICAO) standards.

    Both became the country’s 4th and 5th local airlines to be granted the AOCs.

    Nok Scoot and Thai AirAsia X are low cost international carriers operating in an extremely competitive field.

    Of all 5 local carriers that were granted AOCs, 77% are international carriers.

    The certificates were presented to executives of the two airlines by the Civil Aviation Authority of Thailand yesterday.

    CAAT director-general Chula Sukmanop said that the presentation of AOC certificates showed that the two airlines have security systems in place and their services met ICAO standards even though they are low-cost airlines.

    One final hurdle for Thailand is to petition the ICAO revoke its red-flagging of the local airline industry which should be successfully achieved by the end of this month, he said.

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  • Nok Air plans big push in Phuket

    Nok Air plans big push in Phuket

    Low-cost carrier Nok Air hopes to better tap into the potential of Phuket’s large foreign market over the next high season, an executive told the Phuket Gazette recently.

    Pinyot Pibulsongkram, a Nok Air Vice President, told ‘Up in the Air’ that Nok currently has five daily flights between Bangkok and Phuket, with six flights on Fridays and Sundays. Nok plans to increase these services for the upcoming high season.

    Operating out of Don Mueang Airport in Bangkok, Nok offers flights to Phuket from the capital aboard its fleet of 189-seat Boeing 737-800s.

    The load factor on the Phuket flights has been consistently strong at about 90 per cent, even in the aftermath of the Erawan Shrine bombing, Mr Pinyot said.

    The effect of the tragedy on its Phuket service was largely mitigated by the fact that as much as 95 per cent of its passengers to Phuket are Thai, he added.

    “Usually after an event like that one would expect to see an immediate drop in bookings, but that was not the case. We were all really surprised by it, to be quite honest.

    “We expected a slight seasonal dip in September followed by demand rising in October and into the high season.”

    Nok plans to increase the number flights to Phuket even further after the current airport expansion project is completed. Work on the mega-project is on schedule and should be finished by mid-February. Nok deems six or seven flights daily as ‘manageable’ after the work is finished.

    Seasonal demand for flights to Phuket has changed a great deal over the past five years and the island is now much more of a year-round destination. Nok uses a variety of advertising campaigns to remind its main client base, Thais living in metropolitan Bangkok, that it does not rain continuously in Phuket during the monsoon season.

    Load factors on the Bangkok-Phuket route have consistently been among Nok’s highest in recent years.

    “In the mechanics of low-cost carriers, we do not typically push promotions on flight routes that are doing well. But the downside of this is that we have not directed much promotion effort to foreigners.

    “Our passengers to Phuket are about 95 per cent Thai, but in a market like Phuket where as much as 80 per cent of passengers in transit are foreigners, we need to do a better job capturing that market,” Mr Pinyot said.

    Nationwide, Nok Air and Thai AirAsia are neck-and-neck in terms of market share, each with about one-third of the domestic market. The final third is divided among other carriers including Lion Air, Bangkok Airways and Thai Smile.

    “But it varies from city to city. For Phuket, AirAsia has greater market share because they offer more flights,” he said.

    When asked about the rapid expansion of Indonesian carrier Lion Air into the Thai market, Mr Pinyot said, “Luckily, Phuket has quite a high demand, so the market is huge. Lion Air is in direct competition with us and their rates are really low – ridiculously so, on some routes.”

    He cited the Hat Yai-Bangkok route as an example. Pre-booked flights start at about 1,400 baht on Nok; about 700 to 800 baht for AirAsia. Lion Air now offers flights on the route for as low as 350 baht.

    Such low fares pull down the low-cost air carrier market overall, but it also puts Lion Air in direct competition with land transport services offered on trains, vans and buses which still dwarf air traffic in terms of volume.

    “It does have an effect when the price difference on the route is over 1,000 baht. It is affecting us in terms of fares because we cannot push fares up as much as we would like to, but it does not affect us so much in terms of passenger numbers,” he said.

    Competing with Lion Air differs from doing so with AirAsia, he noted.

    “Lion completely ignores the low-cost model. You can go to the airport, pay 350 baht, and fly the same day, which is a complete ‘no-no’ under the standard low-cost model. So the nature of the competition is very different. We see the competition with AirAsia as more of a fair fight. With Lion, it’s more like a street fight.”
    – See more at: https://www.phuketgazette.net/phuket-lifestyle/Up-the-air-Nok-Air-plans-big/62021#sthash.n2nHaDgK.dpuf