Nok Air

Nok Air
นกแอร์
IATA ICAO Callsign
DD NOK NOK AIR
Founded 10 February 2004 (2004-02-10)
Commenced operations 23 July 2004
Hubs Don Mueang International Airport
Secondary hubs Chiang Mai International Airport[1]
U-Tapao International Airport (for charter flights to destinations in China)
Alliance Value Alliance
Subsidiaries NokScoot (51%)
Fleet size 27
Destinations 31
Company slogan "We Fly Smiles"
Parent company Nok Airlines Public Company Limited
Traded as SET: NOK
Headquarters Rajanakarn Building 17th Floor, 3 South Sathon Road, Yannawa, Sathorn, Bangkok, Thailand
Key people Mr Piya Yodmanee (CEO, since September 14, 2017)
Revenue Increase 12,312.93 million baht (2014)
Net income Decrease -471.66 million baht (2014)[2]
Total assets Increase 6,569.00 million baht (2014)
Total equity Decrease 3,771.12 million baht (2014)
Website www.nokair.com

Nok Air (SET: NOK, Thai: นกแอร์, derived from nok (นก), the Thai word for bird) is a low-cost airline in Thailand operating mostly domestic services out of Bangkok's Don Mueang International Airport.[3] Thai Airways owns the second-largest stake in the airline.

History

The airline was established in February 2004 under Sky Asia Co., Ltd. and started operations on 23 July 2004. It had 130 employees in March 2007 and around 1,400 in 2014.[3] Nok Air began its first international service on 31 May 2007, with daily flights to Bangalore, India.

Nok Air serves the largest number of domestic routes within Thailand (24 routes).[4]

Since its inception, Nok Air has been operating largely independently from Thai Airways. This has led to some friction between the two companies. To gain greater control of Nok Air, Thai Airways has tried to purchase the shares of other shareholders, notably Krung Thai Bank. Although Thai Airways and Krung Thai Bank are both state enterprises under the control of the finance ministry, Krung Thai Bank refused to sell its shares in Nok Air to Thai Airways. The purchase would have lifted Thai Airways' stake in Nok Air from 39 to 49 percent.[5]Evidence of Thai Airways declining interest in Nok Air came in May 2017 when Thai Airways shareholding was diluted to 21.57%[6] as a result of not taking up their entitlement of a new share offering. As a consequence Thai investor Mr. Nuttapol Chulangkul became the airline's largest shareholder, owning 23.77% of the company[7].

Due to the preparation process to be listed in the Stock Exchange of Thailand (SET), the company name had been changed to "Nok Airlines Company Limited" on 16 January 2006. Then, at its initial entry to Thailand's stock market, it was renamed "Nok Airlines Public Company Limited" (since 18 January 2013) with trading symbol "NOK".[8]

In 2014 Nok Air announced a joint venture with Scoot Airlines (a low-cost subsidiary of Singapore Airlines) to form NokScoot, a low-cost regional airline based out of Don Mueang Airport in Bangkok.

A new company slogan, "Smiling Across Asia" was unveiled in June 2016. It hints at Nok's strategy of becoming the dominant regional carrier.[9]

On December 22, 2017, Mr. Patee Sarasin, the first Nok Air CEO (between 2004-2017), resigned from company board of director[10], implicitly went out of the airline.[11]

Turbulence in 2016

Beginning in mid-February 2016, Nok Air cancelled numerous flights and issued several contradictory stories to explain the cancellations. The resignation of 17 pilots that followed a 14 February work stoppage by about 10 pilots and the 25 February announcement of an extension of flight cancellations 10 March cast doubt on the airline's competence.[12]

There are issues of dissension between Nok Air management and cockpit staff, charges of nepotism, and questions about pilot loyalty. In its 2015 financial report released on 26 February, the airline acknowledged that the turnover of cockpit staff had exceeded the normal rate, well beyond expectations. There are just under 200 pilots working at Nok Air, considered too few for the scale of its operations.[12]

The problem arose after Thailand tightened its aviation standards to comply with the European Aviation Safety Agency, disqualifying some pilots, Patee Sarasin, Nok Air CEO at that time, told local media. Thailand is under pressure to improve its aviation standards after US authorities downgraded the country's aviation safety rating in December 2015.[13]

To remedy its shortage of pilots, Nok may be permitted to boost the number of its foreign pilots beyond the 40 percent cap mandated by Thai law according to Transport Minister Arkhom Termpittayapaisith. The 40 percent pilot quota is set by the Civil Aviation Authority of Thailand (CAAT), which aims to encourage airlines to employ more Thais as pilots. Pilots, according to the Labour Ministry, are on the list of 39 jobs where Thai nationals are preferred, jobs ranging from barbers and secretaries to certain fields of engineering. Nok in February hired 32 new pilots, bringing their total to 212.[14]

Destinations[15]

Domestic

From Bangkok - Don Mueang International Airport (Primary Hub)
From Udon Thani – Udon Thani International Airport

International

China
From Pattaya - U-Tapao International Airport
Myanmar
Vietnam
Singapore

Miscellaneous

Nok Air also offers ferry services to domestic island destinations as well as domestic and cross border coach services to Vientiane and Pakse in Laos in conjunction with other tour operators.[15]

Thailand
Vietnam

Fleet

Nok Air Boeing 737-800, Phuket International Airport
Nok Air ATR 72-200, Chiang Mai International Airport
Nok Air Boeing 737-800 at Don Muang International Airport

Nok Air operates 27 aircraft. As of 16 April 2017, the Nok Air fleet consisted of the following leased aircraft.[17][18]

Nok Air fleet
Aircraft In Service Orders Passengers Notes
ATR 72-500 2 — 66
Boeing 737-800 17 — 189
Boeing 737 MAX 8
—
8
TBA
Bombardier Dash 8 Q400 NextGen 8 — 86 Launch customer for high-density variation
Total 27 8

Major shareholders

Major Shareholders (as of 17 March 2015)[19]% of shares owned
Thai Airways International PLC39.2%
Siam Commercial Bank3.44%
Mr. Patee Sarasin3.28%
Thai NVDR Company Limited2.84%
Credit Suiss AG, Singapore Branch2.53%
Morgan Stanley & Co. International PLC1.63%
Mr. Supapong Asvinvichit1.48%
Mr. Songkram Cheevaprawatdomrong1.28%
Mr. Pichai Karnjanarporn0.80%
TISCO Master Pooled Fund0.76%
Mr. Chanin Charisarapong0.75%
State Street Bank and Trust Company for Canada0.73%
TISCO Dividend Long Term Equity Fund0.52%

See also

References

  1. ↑ "About Nok Air". Nok Airlines PLC. Retrieved 8 December 2015.
  2. ↑ "F/S & Highlight". Stock Exchange of Thailand. Retrieved 8 December 2015.
  3. 1 2 "Directory: World Airlines". Flight International. 2007-04-10. p. 56.
  4. ↑ "Nok Air adds more small cities to plan". Bangkok Post. 29 Mar 2011.
  5. ↑ "KTB rebuffs Thai offer for Nok". Bangkok Post. 24 Jan 2011.
  6. ↑ "Airline Review - Nok Air". Destination Travel. 31 May 2017.
  7. ↑ "Major Shareholders". Nok Investor Relations. 5 March 2018.
  8. ↑ "NOK History". Nok Airlines PLC. Retrieved 8 December 2015.
  9. ↑ Kositchotethana, Boonsong (10 June 2016). "Nok Air to repair image with new slogan". Bangkok Post. Retrieved 10 June 2016.
  10. ↑ "พาที สารสิน' ลาออก! พ้นกรรมการ 'นกแอร์'". Thansettakij (in Thai). 22 December 2017. Retrieved 22 December 2017.
  11. ↑ ""พาที" ลุกจากกรรมการ ลาพ้นนกแอร์" (in Thai). นิตยสารโพซิชั่นนิ่ง. 22 December 2017. Retrieved 22 December 2017.
  12. 1 2 Kositchotethana, Boonsong (2016-02-29). "Mending Nok Air's broken wings". Bangkok Post. Retrieved 29 February 2016.
  13. ↑ "Thai budget carrier Nok Air cancels flights over pilot strike". Yahoo News. Retrieved 2016-02-15.
  14. ↑ Mahitthirook, Amornrat (2016-02-27). "More foreign pilots for Nok Air". Bangkok Post.
  15. 1 2 "Nok Air routes". Nok Airlines PLC. Retrieved 8 December 2015.
  16. ↑ https://www.routesonline.com/news/38/airlineroute/279004/nok-air-adds-phetchabun-from-june-2018/
  17. ↑ Nok Air Fleet
  18. ↑ Nok Air Mini Fleet
  19. ↑ "NOK's Major Shareholders". Stock Exchange of Thailand. Retrieved 8 December 2015.
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