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China to Take Centre Place in Nok Air’s Recovery Strategy
24th May 2016
Looking to get back into the black, Thai-based carrier Nok Air is putting its recovery plan in motion and it appears the LCC has set sights on China to be its main stage.
After losing customer confidence following an unannounced pilot walk-out in February, leading to a number of cancelations, Nok Air is determined to repair its damaged credibility. Speaking about this, Nok Air Chief Executive Officer Patee Sarasin said:
We are regaining altitude, pretty much back on course and are ready to move forward again.
Nok Air Joins Other Budget Carriers to Form the Value Alliance
Nok Air had a combined net loss in the period between 2014 and Q1 2016 of 1.6 billion baht. The airline is eager to go back to the time when it posted a 1.06 baht net profit, as it did in 2013. To do this, it needs a strong recovery plan and a partnership with other carriers can definitely help.
On 16th May, Nok Air, together with another airline from Thailand, NokScoot, Scoot and Tigerair (Singapore), Tiger Australia, Vanilla Air (Japan), Jeju Air (South Korea) and Cebu Pacific (Philippines) formed the “Value Alliance” with the idea of helping each other drive ticket sales and distribution.
Mr Patee he hopes the Value Alliance will help Nok Air drive revenue:
By the third quarter of this year, our balance sheet should start picking up and we hope to see a profit by the fourth quarter.
Nok Air Aiming to Launch Scheduled Flights to China
According to Nok Air CEO, the airline has been slow to enter China, but he is determined to make the LCC’s presence there stronger in the next five years, when he said he expects this market will bring 50 per cent of its total revenue.
To do that, however, Nok Air will need to establish some scheduled flights between Thailand and China. The airline aims to kick off the first scheduled flights to China in November, announced Patee. He also said that the carrier will at first focus on the cities in the southern region of China.
At the moment, Nok Air provides only regular charters to China on the following routes: Bangkok-Nanning, Bangkok-Hefei, Phuket-Chengdu and Krabi-Chengdu.
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