News
Nok Air loses its way as competitors mount
March 10th 2017
Nok Air, Thailand’s second-largest low-cost carrier (LCC) after Thai AirAsia, has posted a 3.28 billion baht (US$94 million) 2016 fiscal year loss, widened from a record loss of 1.66 billion baht in 2015. Read More » Nok lost passengers to its competitors last year and its costs are out of control.
The Don Mueang-based airline carried 8.56 million passengers to December 31, down from 8.76 million the previous year. Nok’s costs increased more than 14% year-on-year, to 15.7 billion baht, largely on the back of additional aircraft rentals and maintenance. The carrier’s RASKs dropped 9.8% to 2.02 baht, while yield fell 5.2%. It added five aircraft to its fleet last year: three B737-800s and two Bombardier Q400s.
NokScoot, Nok’s long-haul budget carrier, contributed to the parent’s continued haemorrhaging of cash with a 473 million baht 2016 loss.
Nok said it planned to sublease three or four B737-800s this year and improve the utilization rate of its fleet from approximately eight to ten hours a day, airline. Nok CEO, Patee Sarasin, told the Bangkok Post he will add more overnight charters to China and India to boost fleet utilization.
"It's unrealistic to expect us to be back in the black this year because of the depth of the problems, but maybe we can break even if our remedial plan works well and no significant impact from external factors arises," Patee told the newspaper.
Thai AirAsia, Bangkok Airways and Nok parent, Thai Airways International (THAI), reported profits in 2016, although they forecast a bleak outlook for 2017.
