Nok's Takeover of Routes Looks Promising

The Transport Ministry's plan to allow the budget carrier Nok Airlines to take over loss-making secondary domestic routes from Thai Airways International has received favourable responses from the two airlines.

Thai Airways executives said the airline could let go of the routes serving Phitsanulok, Mae Hong Son and Khon Kaen, as advocated by Transport Minister Sophon Zarum, to improve the flag carrier's balance sheet.

Nok chief executive Patee Sarasin said the plan would help both of the airlines in that it would free Thai Airways from the need to operate losing routes that Nok could service more efficiently.

"It's a win-win model for both of us," he said, adding the proposal was in line with Nok's original creation concept to support its parent.

Thai Airways has insisted on keeping domestic trunk routes such as Chiang Mai and Phuket, which support its international flight system.

Mr Sophon said he wanted to see THAI and Nok, which is 39% owned by the national carrier, collaborate more on domestic flights and reduce unnecessary competition.

Thai Airways executives say domestic operations as a whole are profitable, thanks to the rebound of domestic travel demand following the Bangkok airport shutdown three months ago.

However, Mr Patee said it could take up to six months before Nok could assume the extra routes, pending the addition of two Boeing 737-400s to its current fleet of three similar airplanes.

"We don't want to rush the takeover. The process has to be gradual as we have to make preparations," he added.

Source - The Bangkok Post