Nok Air rehabilitation proceeding as planned
Chief executive Wutthiphum Jurangkool said on Wednesday the airline is focusing on strengthening its core business and improving revenue and margins so it can exit the rehabilitation plan.
He said the carrier's outstanding debt remains around 400 million baht, down from 5.4 billion baht previously.
Nok Air recorded revenue of 7 billion baht, with 60 million baht net profit, in 2024 from 4 million passengers. It was the second consecutive year of profit after nine years of losses.
During this year's first half, it had earned 4 billion baht revenue, and aimed to match revenue and passenger numbers of last year.
Factors driving this include the return of aircraft to the fleet after maintenance, and the ability to increase its aircraft utilisation rate at night and its fares on international flights.
During the summer period, Nok Air had only maintained domestic flights to 15 cities. In the coming winter period, it would resume several international routes, including to Hyderabad and Mumbai in India, Nanning and Zhengzhou in China and Ho Chi Minh City in Vietnam, Mr Wutthiphum said.
It also planned to launch new services to Delhi in India, Bali in Indonesia and Manila in the Philippines.
Pakorn Rattanarod, head of commercial strategy at Nok Air, said the airline currently has 14 Boeing 737-800 aircraft in its fleet, with 10 aircraft actively serving passengers.
It planned to receive two more aircraft under a six-month wet lease contract this year to help on the new international routes.
Mr Pakorn said the airline plans to have 20–30 aircraft in its fleet within five years and should be able to receive the Boeing 737 Max 8 it already ordered after a five-year waiting period.
The airline is set to join the Tourism Authority of Thailand's promotion allowing foreign tourists to use their international tickets to redeem domestic tickets with Nok Air and fly to any destination in Thailand for free. This resembles a scheme operated by the Japanese government.
He expected the scheme to be proposed to the cabinet soon, and it is scheduled to be rolled out in September, covering three months through November, with each Thai carrier receiving 60,000 seats.
To elevate the passenger experience, Nok Air has also launched a new in-flight entertainment service offering Korean drama series via Viu, and onboard shopping for local products, as well as the Nok Deal platform for frequent flyers.
Within 3-4 years, Nok Air aims to have international passenger sharing for 40% of total seat capacity. It also plans to enter the freighter business with one aircraft targeting the e-commerce segment, beginning at the end of this year or early next year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bangkok Post
3 hours ago
- Bangkok Post
Clashes continue Monday as Thai, Cambodian leaders set for peace talks
Clashes between Thai and Cambodian forces continued into early Monday morning as their leaders are set for talks Monday to halt the deadliest clash between the neighbours in more than a decade, with the US sending mediators after President Donald Trump used tariffs threats to press for a ceasefire. Thailand's Acting Prime Minister Phumtham Wechayachai and Cambodian Prime Minister Hun Manet are scheduled to meet in Kuala Lumpur at 3pm local time (2pm in Thailand), according to Thai government spokesman Jirayu Houngsub. The gathering will be at the office of Malaysian Prime Minister Anwar Ibrahim, who's facilitating the dialogue in his role as the chair of the Association of Southeast Asian Nations. The first talks since clashes began on July 24 come within 48 hours of Trump saying Thai and Cambodian leaders had agreed to 'quickly work out a ceasefire'. After separate calls with Mr Phumtham and Mr Hun Manet on Saturday, Trump had threatened that Washington will not do a trade deal with either country as long as the fighting continued. The clashes continued into early Monday morning ahead of the talks, with the Thai army reporting fighting at multiple locations along the border. Cambodia's defence ministry said Thai forces used heavy shelling at two locations from around 3am, the Khmer Times reported, citing a spokesperson. Secretary of State Marco Rubio said US officials are on the ground in Malaysia. China, the top trading partner for both the Southeast Asian nations and a major backer of Phnom Penh, is due to participate in the talks, officials from Cambodia said. 'Both President Trump and I remain engaged with our respective counterparts for each country and are monitoring the situation very closely,' Rubio said in a statement. 'We want this conflict to end as soon as possible.' Trump's tariff threat set off a flurry of diplomatic activities on Sunday with Anwar eventually getting the two sides to agree to meet. Rubio also spoke to the foreign ministers of Thailand and Cambodia and urged them to immediately de-escalate tensions while offering US help in future talks. Speaking to reporters just before meeting with European Commission President Ursula von der Leyen on Sunday, Trump acknowledged the phone calls with the two leaders. 'I called the prime ministers of each and I said, 'We're not going to make a trade deal unless you settle the war.' A lot of people killed,' Trump said. 'And I think by the time I got off, I think they want to settle now.' With Trump's Aug 1 tariff deadline looming, trade-reliant Thailand wants to avoid antagonising the US president, especially as its officials have been holding talks to lower the steep 36% planned levy on its exports. Trump has claimed credit for helping halt border clashes earlier this year between India and Pakistan by leveraging trade measures, and is now applying similar pressure in Southeast Asia. 'When all is done, and Peace is at hand, I look forward to concluding our Trading Agreements with both!,' Trump said on Truth Social after speaking to Thai and Cambodian leaders Saturday. Thailand's trade talks with the US have included offering expanded access for American goods in an effort to narrow a $46 billion trade surplus with Washington. Neighbouring Indonesia, the Philippines, and Vietnam have already secured trade deals with the US in recent weeks. Thailand and Cambodia shouldn't have needed the pressure from Trump, and should have turned to Asean as a natural middle ground to mediate the conflict well before US intervention, said Fuadi Pitsuwan, a lecturer in international relations at Thammasat University in Bangkok. 'In the end, Trump will likely frame the situation as a win: he enforced a ceasefire while securing leverage' to impose punitive tariff rates, he said. Despite the economic stakes, Thailand has taken a firm stance ahead of Monday's talks. Officials say any ceasefire must be tied to bilateral resolution of the dispute, the withdrawal of troops, and a halt to the use of lethal weapons. Cambodia, by contrast, has said it is open to an unconditional cessation of hostilities. The talks are 'intended to listen to all proposals that could contribute to restoring peace,' spokesman Jirayu said. 'The Thai government remains committed to defending the nation's sovereignty and territorial integrity. Every square inch of it.' The conflict, which escalated from months of simmering border tension, has killed more than 30 people and displaced over 150,000 civilians on both sides. Thailand has reported 22 fatalities, including eight soldiers, while Cambodia has confirmed 13 deaths, including five military personnel. Heavy artillery fire continued Sunday across their 800-kilometre (500-mile) border, with both sides accusing each other of targeting civilians. Thailand has responded by deploying F-16s and Swedish-made Gripen fighter jets to strike Cambodian military positions. Thailand and Cambodia share a history of border disputes, though relations have remained largely stable since a deadly 2011 clash that left dozens dead. The last major flare-up centred on the Preah Vihear temple, a historic flashpoint rooted in colonial-era disagreements. Much of the current dispute stems from maps drawn on differing interpretations of early 20th-century Franco-Siamese treaties, which defined the border between Thailand and Cambodia, then part of French Indochina.
Bangkok Post
2 days ago
- Bangkok Post
Two Buri Ram temple sites closed due to border tensions
Phanom Rung Historical Park and Muang Tam Sanctuary in Buri Ram province have been closed until further notice, the Department of Fine Arts said on Saturday. The closure comes in response to escalating unrest along the Thai-Cambodian border, Fine Arts Office 10 said on its Facebook page. Security concerns made it prudent to restrict public access to the sites. The two ancient sites will remain closed until the situation improves, the office said. In a related development, Thai Airways International said it was cancelling one of its Bangkok-Phnom Penh round-trip services in light of current developments. From July 27 to 31, it said, Flight TG584/TG585 on the Bangkok-Phnom Penh route has been cancelled. Flight TG586/TG587 will continue to operate according to the normal schedule, using an aircraft with more seats to accommodate more passengers. 'Thai Airways is closely monitoring and evaluating the situation and is operating flights under the highest safety standards,' it said.
Bangkok Post
2 days ago
- Bangkok Post
Private sector highlights business support measures
The Federation of Thai Industries (FTI) has presented recommendations to the commerce minister aimed at pushing the economy forward amid global trade uncertainties. During a meeting on Thursday, the Commerce Ministry's executive team led by Commerce Minister Jatuporn Buruspat and Deputy Commerce Minister Chantawit Tantasith discussed proposals presented by the FTI and chairman Kriengkrai Thiennukul. The meeting explored collaborative strategies between the government and the private sector to stimulate economic growth and address the rapidly changing trade situation, such as US tariffs, the European Union's carbon border adjustment mechanism, geopolitical tensions, rising production costs and the impacts of climate change. Mr Jatuporn said the ministry and the FTI are planning to issue a joint declaration on cooperation to systematically address challenges faced by businesses, with progress reviewed every 10 days. He said most of the FTI's proposals align with the ministry's urgent policies and will be implemented to help revive Thailand's economy. The focus is on grassroots economic development, leveraging soft power and expanding opportunities for all sectors, said Mr Jatuporn. Mr Kriengkrai outlined five economic and business support measures, including advocating for relief measures to support businesses affected by US tariffs, such as government assistance for legal and expert aid for small and medium-sized enterprises (SMEs) and reductions in related business costs such as certificate of origin fees. The private sector called on the government to accelerate tariff negotiations with the US, particularly regarding Section 232, which imposes high duties on key products such as steel, aluminium, vehicles and auto parts. The FTI recommended the government take proactive measures to mitigate trade diversion effects by initiating trade remedy actions rather than waiting for complaints from the private sector. All trade tools should be fully utilised, including anti-dumping, safeguards and countervailing duties, while monitoring unusual import surges under the Export and Import of Goods Act. The federation urged the government to explore new markets for Thai industries by expediting negotiations for new free trade agreements, such as the Thailand–Eurasian Economic Union agreement, supporting the SME proactive programme and trade missions, and increasing government procurement of made-in-Thailand products. Lastly, the FTI promoted the establishment of a long-term border trade ecosystem, calling for integrated infrastructure development and streamlined procedures to support comprehensive and sustainable border trade facilitation.
