Nok Air sticking to expansion of flight routes to five provinces

THURSDAY, NOVEMBER 17, 2011
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Nok Air is leaving its 2012 business plan intact to spread its wings to five provinces even though its profit this year is expected to miss the target because of the flooding.

“We will expand business as planned despite experiencing a negative impact from the inundation this year,” chief executive officer Patee Sarasin said yesterday.
The budget airline confirmed that it would operate from Bangkok to Chiang Rai, Krabi, Ranong, Lampang and Nakhon Ratchasima, where it would use a military |airport.
The domestic carrier recently received two new Boeing 737-800 aircraft and another one is due to arrive at the end of this month.
Six more similar aircraft are scheduled for delivery next year. All new additions to its fleet are under operating leases.
The airline will increase frequencies on some existing routes and |destinations from 15 to 23, the |same figure as before the flood, Patee said.
Nok Air expects to earn Bt300 million to Bt400 million on Bt6 billion in revenues next year.
However, the aviation industry will continue to face soaring jet-fuel prices in the coming year as well as possible unrest in the country after the flooding.

AWAY FROM POLITICS
Nok Air is doing relatively well, as it is removed from political issues so its business can usually go on amid the instability.
It reduced its profit projection |for this year from Bt300 million |to Bt290 million because of the flooding.
From January to October 24, before Don Mueang Airport was submerged and had to shut down, Nok Air reaped Bt250 million in profit. Overall business is now very good with total services of 80 flights per day and average load factor of 85 per cent, Patee said.
After Don Mueang was temporarily closed and operations were relocated to Suvarnabhumi Airport on October 25, total frequencies were cut to 58 flights per day while the load factor dropped to 70 per cent.
“We have lost Bt40 million to Bt50 million because of the flooding, mostly from cancellations and refunds,” he said.
The airline will return all services to Don Mueang by January with no need to spend on renovation, as all equipment at the airport was raised to a safe level.
Some employees based at Don Mueang are on leave and are to return to work once the airport is ready for operation.
More management staff have been recruited by the company for long-term growth.
Nok Air is now taking disaster planning seriously after experiencing the worst flooding it has ever seen, Patee said.
In case of a similar emergency some time in the future, it is ready to evacuate operations from its Don Mueang hub to other airports such as Suvarnabhumi, U-tapao or even Chiang Mai.
To bring passengers back, it is offering a special Bt800 one-way airfare for some destinations until November 28 for travel not later than March 24.