23-07-2025
Nok Air rehabilitation proceeding as planned
Nok Air expects to exit the rehabilitation process as planned by mid-2028, with less than 400 million baht of debt remaining, and will join the government in offering free domestic air tickets to foreign tourists from September.
Chief executive Wutthiphum Jurangkool said on Wednesday the airline is focusing on strengthening its core business and improving revenue and margins so it can exit the rehabilitation plan.
He said the carrier's outstanding debt remains around 400 million baht, down from 5.4 billion baht previously.
Nok Air recorded revenue of 7 billion baht, with 60 million baht net profit, in 2024 from 4 million passengers. It was the second consecutive year of profit after nine years of losses.
During this year's first half, it had earned 4 billion baht revenue, and aimed to match revenue and passenger numbers of last year.
Factors driving this include the return of aircraft to the fleet after maintenance, and the ability to increase its aircraft utilisation rate at night and its fares on international flights.
During the summer period, Nok Air had only maintained domestic flights to 15 cities. In the coming winter period, it would resume several international routes, including to Hyderabad and Mumbai in India, Nanning and Zhengzhou in China and Ho Chi Minh City in Vietnam, Mr Wutthiphum said.
It also planned to launch new services to Delhi in India, Bali in Indonesia and Manila in the Philippines.
Pakorn Rattanarod, head of commercial strategy at Nok Air, said the airline currently has 14 Boeing 737-800 aircraft in its fleet, with 10 aircraft actively serving passengers.
It planned to receive two more aircraft under a six-month wet lease contract this year to help on the new international routes.
Mr Pakorn said the airline plans to have 20–30 aircraft in its fleet within five years and should be able to receive the Boeing 737 Max 8 it already ordered after a five-year waiting period.
The airline is set to join the Tourism Authority of Thailand's promotion allowing foreign tourists to use their international tickets to redeem domestic tickets with Nok Air and fly to any destination in Thailand for free. This resembles a scheme operated by the Japanese government.
He expected the scheme to be proposed to the cabinet soon, and it is scheduled to be rolled out in September, covering three months through November, with each Thai carrier receiving 60,000 seats.
To elevate the passenger experience, Nok Air has also launched a new in-flight entertainment service offering Korean drama series via Viu, and onboard shopping for local products, as well as the Nok Deal platform for frequent flyers.
Within 3-4 years, Nok Air aims to have international passenger sharing for 40% of total seat capacity. It also plans to enter the freighter business with one aircraft targeting the e-commerce segment, beginning at the end of this year or early next year.
