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Nok Air Focuses its Turnaround Plan on China
25th Jul 2017
Nok Air has been in the red since 2014, but is determined to turn its business fortunes around and return to black in the near future. To do this, the no-frills carrier will mainly focus on the Chinese market, where it believes an expansion will improve its international standing.
The carrier already operates seven routes between Thailand and China, including Bangkok-Nanning, Bangkok-Yancheng, Bangkok-Nantong, Bangkok-Baotou, Chiang Mai-Nanning, Phuket-Nanning and Phuket-Chengdu.
To the existing routes, the airline also plans to add four new ones, which should be:
- Bangkok to Yinchuan since 22nd July, one flight per week
- Bangkok-Zhengzhou from 2nd August, four flights per week
- Phuket-Kunming from 15th August, three flights per week
- Phuket-Zhengzhou from 1st November, four flights per week.
All Nok Air flights to China, including existing and future ones are scheduled charter flights and most of the seats are sold to tour operators from China itself.
In addition to the Chinese market, Nok Air also has plans for expansion in the next year-and-a-half elsewhere. At the moment, the carrier is weighing its options in Japan (Okinawa and Fukuoka), India (Kolkata, Hyderabad and Chennai) and the Philippines (Cebu).
When it comes to the Nok Air’s domestic routes, Mr. Pinyot Pibulsonggram, Vice President for Marketing and Sales at the airline said that despite poor performances on some of the domestic routes, there won’t be any cuts here.
Instead, it appears that Nok Air will replace the Boeing B737-800 planes that it uses on most of the domestic routes with smaller types such as ATR72-500s or Bombardier Q400s, both of which the carrier has in its fleet.
Speaking of the Nok Air fleet, the turnaround plan does not call for its downsize according to Mr. Pinyot. Right now, the carrier has 20 Boeing B737-800s, eight Bombardier Q400s and two ATR720-500s.
The VP of marketing and sales at Nok Air also said that the airline will stop taking part in price wars with its main competitors Thai Lion Air and Thai AirAsia and as a part of its strategic plan will aim to provide added value to its services instead of reducing its fares.
Mr. Pinyot said:
These offerings are more valuable and appreciated by our customers rather our fares being 40-50 baht lower than other airlines.
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