Nok Air Sees Rosy Future

25th Aug 2014

The budget carrier is not, in any way, worried about its future despite the rare loss it posted over a three-month period, from April to June, this year.

The country's political crisis and stiff competition among local players are the primary factors that beset Thailand's air travel market that made it hard, if not impossible, for local carriers to make a profit during the period. However, the short-haul operation of Nok Air was able to eke out profit during the second quarter of 2014.

The company continues to be optimistic in the Thai market following the 6-month political crisis that stalled the country's tourism industry. Although a number of countries issued travel advisories to its citizens against travel to Thailand during the height of the crisis until its waning days, the industry remains not significantly affected. The foreign arrivals during the first 2 quarters dropped by a mere 6% compared to the same period in 2013.

It is expecting a speedy recovery during the second half of this year, as it is set to launch its long-haul brand before the year ends. Christened NokScoot, the new carrier is a joint venture between Nok Air and Singapore-based Scoot, a long-haul low-cost brand of Singapore Airlines.

Its launch is scheduled within the fourth quarter of this year, with its inaugural route from Bangkok to an undisclosed destination in North Asia, most probably China.

Nok Air, for its part, is planning to launch its second international route from Bangkok to Vietnam. Its only other international route is from Bangkok to Yangon in Myanmar.

Nok Air is currently Thailand's largest local carrier by market share and has the most number of domestic destinations in the country with a total of 25.

Despite the political problem that besieged the country's tourism industry recently, the airline was still able to grow this year. The launch of its long-haul brand this year, as well as the ongoing regional expansion, offers another growth opportunities for the airline.

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