27th Jun 2017
One by one, major international Thai-registered airlines are getting their Air Operator Certificates (AOC) reissued by the Civil Aviation Authority of Thailand (CAAT). Last week, low cost carrier (LCC) Nok Air has become the sixth major Thai airline to be reissued its AOC.
Before Nok Air, CAAT reissued AOCs to Bangkok Airways in February, Thai AirAsia in April, Thai Airways in May, while Thai AirAsia X and NokScoot got their certificates in June.
Upon receiving their new AOC, Nok Air officials said they plan to “reduce unnecessary costs, improve network expansion and further efficiency in the use of aircraft”. The loss-making airline also said it will “revise and develop certain business models” to meet changing customer patterns.
Nok continued, saying that while it will continue to “fully cover the domestic market”; it also plans to expand its operations in Asia. At the moment, the majority of Nok Air’s flights are domestic, but the carrier also operates a few international flights as well.
Nok Air’s largest single shareholder at the moment is Thai Airways with 21.6%. Previously, THAI had a 39.2% share in Nok Air, but weakened its position after refusing to take up a subscription of 245 million ordinary shares and take part in the share sale Nok Air put out.
Thai-based airlines have to again be recertified by CAAT and receive their AOCs after the International Civil Aviation Organization (ICAO) issued a warning to Thailand’s aviation sector after finding several safety problems in early 2015. Following this decision by ICAO, Thai airlines were banned from introducing new international routes or increase frequency on current routes.
The plan CAAT has is to reissue AOCs to nine airlines in the first half of 2017, so we should expect three more certifications in the next few weeks. This is also one of the major points Thailand has to work on if it wants to convince ICAO to remove its red flag status.
On the Thailand red flag status by ICAO, CAAT officials said they have already resolved more than 80% of problems this organization identified.