Nok Air: capital increase wins shareholder approval
Nok Air will accelerate business rehabilitation following the capital increase, which should raise sufficient funds for fleet improvement and route expansion as well as turn around shareholders' equity.
Pravej Ongartsittigul, the acting CEO of Nok Air PLC, said at the extraordinary meeting on January 22, shareholders endorsed the rights offering which will raise the company's capital by Bt2.3 billion, enough to finance business rehabilitation for solid growth and an improvement in the financial position.
The proceeds will ensure sufficient working capital to support the operations, expand routes and improve the fleet, Pravej said. Nok Air consequently targets a turn around within 2019.
“Thailand's low-cost airline industry shows fiercer competition. Challenges derive from fuel cost fluctuation and intensifying price competition. Nok Air, as a result, showed losses in the low season. However, Asia still performs better than other regions in terms of the number of travellers. This year, we plan to open new routes in Asia, chiefly to China, India and Japan. Meanwhile, we will emphasise profitability efficiency and reduce cost more efficiently," Pravej said.