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Nok Air defers B737MAX8s in strategy shake up
September 29th 2017
Only a week into his new job, Nok Air CEO, Piya Yodmani, announced the deferral of the airline’s eight on-order B737 MAX 8s from Boeing. Read More » Speaking to the Bangkok Post, Piya said the decision was part of a business restructuring aimed at reversing losses of US$150 million from 2014 to June 30 this year.
Don Mueang-based Nok Air was to receive its first MAX in 2018. The deliveries of the first two airframes for the low-cost carrier have been deferred to 2019. Two more MAXs, originally due in 2019, have been delayed to 2020 and the remaining four jets will arrive at Nok in 2021.
Nok Air also is negotiating an early return of five leased B737-800s and two ATR72-500s to their lessors, although the returns would attract penalties.
Piya said Nok Air must improve its fleet utilization rate, which currently averages eight hours a day in service. The LCC’s new boss hoped to achieve eleven hours of flying after tweaking flight schedules and crew rosters.
Piya, the former CEO of long-haul sibling NokScoot, took the top job at Nok after Patee Sarasin, who has led the carrier since its establishment in 2004, resigned. Following Sarasin’s departure, THAI agreed to invest another 370 million baht (US$11.2 million) for new shares in Nok.
“The plan for rehabilitation and management is already clear, so it will be possible to increase capital in this round,” Flt Lieutenant Montree, THAI’s executive vice-president for corporate strategy and sustainable development, noted after Piya briefed him on the new Nok strategy.
