NokScoot, Thai AirAsia X Postpone Expansion Plans

17th Dec 2015

Thailand's air safety problems are continuing to cause detriment to its airlines. The latest two victims of it were long-haul carriers NokScoot and Thai AirAsia X (TAAX), both of which had to freeze their plans for expansion until the problem is resolved.

Both directors ' NokScoot's Patee Sarasin and TAAX' Tassapon Bijleveld ' confirmed their decision was forced by ISAO's (International Civil Aviation Organization) red-flagging of the country's civil aviation authority because of major safety concerns.

As a result of ISAO's red flag, the two airlines are barred entry into Japan and South Korea. That's a heavy blow for their expansion plans, as both NokScoot and TAAX were hoping to tap into these growing markets.

When it comes to Japan, Thai AirAsia X cannot start new routes, increase the capacity or frequency on its current routes, or change the type of planes it uses on them.

Even that is better than NokScoot, which couldn't even launch a service to Japan or South Korea. Its plans to do so were shattered with ICAO's ruling.

Tassapon explained TAAX exhausted all options with the Japan Civil Aviation Bureau, but couldn't get it to take a more relaxed approach and allow TAAX to recommence Sapporo flights.

While they're plans for Japan and South Korea are not going well, NokScoot and TAAX are focusing on China.

Thanks to China's more open airspace policy and Beijing not following ICAO's advice, TAAX managed to start regular flights to Shanghai on 1st October, 2015, while NokScoot launched a service to Qingdao on 25th November.

NokScoot, which currently services Singapore, Taipei and Qingdao with wide-body Boeing 777-200s, posted a net loss of 298 million baht in the last nine months on the Thailand's Stock Exchange and is one of the reasons for Nok Air's 572 million baht loss in the previous period.

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