Overview - Nok Air

Nok Air – an uncertain future Thai Airlines LCC affiliate

Launched partially in response to the growing trend for network carriers to develop low cost arms, Nok Air has appeared uncertain about its role and its strategy since its inception. The carrier, whose name means "bird" in Thai, commenced operations Jul-04, armed with two B737-400s it leased from parent company, Thai, which holds a 39% stake and also maintains the aircraft.

Led by former advertising executive Patee Sarasin, Nok has spoken publicly of grand plans for expansion throughout the region. It has been quoted in the press saying it would triple its fleet size, either with more B737s or A320s and would fly to, among other destinations, Mainland China, Hong Kong, Macau, Singapore and Bangalore. However, its operations have thus far been restricted to Thai cities.

For now, it appears that Nok's role is to apply its ostensibly lower costs (the carrier does not disclose financial information) to operate domestic services on which Thai has historically lost money.

This was evidenced when Thai designated one of its ATR-72s to the LCC for the purpose of serving the unprofitable Chiang Mai-Mae Hong Son route, even though introducing a new one-unit fleet type runs opposite to the conventional LCC mode. Even so, Nok and Thai services often overlap, such as on routes from Bangkok to Chiang Mai and Phuket, minimising the benefits.

Clouded vision for small LCC

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