Thailand's Nok Air eyes acquisitions, fleet growth

Although it first has to finalise negotiations with its creditors, Nok Air (DD, Bangkok Don Mueang) is
evaluating options to become a stronger carrier in the post-COVID era among which include growth
through acquisitions and a fleet revamp.
In an interview with the Bangkok Post, chief executive Wutthiphum Jurangkool said the low-cost carrier
had already concluded negotiations with about half of its creditors ahead of a March 15, 2021,
deadline to submit its restructuring plan to the Central Bankruptcy Court. The plan will have to be
approved by creditors holding at least 50% of the airline's liabilities before the court can greenlight it.
Some matters remain outstanding in the talks, Wutthiphum said, including Nok Air's future leasing
commitments.
As the talks continue, the airline has delayed the filing of its 2020 annual until the second quarter of
2021.
"The company recognises the significance of the financial statements whose material information shall
be prudent and correct. However, some material information that impacts the company’s financial
statements is currently unavailable as a result of preparation for the rehabilitation plan," Nok Air
explained in a stock market filing.
The delay prompted the Stock Exchange of Thailand (SET) to suspend trading in Nok Air's shares as
of March 2. However, the airline is plotting a way forward with Wutthiphum saying it had approached
two other large Thai carriers over a potential acquisition, guided by the notion that consolidation and
expansion could be vital to long-term financial sustainability.
While he would not name the carriers Nok Air had talked to, they are among the seven founders of the
Airline Association of Thailand. Besides Nok Air, the club includes Bangkok Airways, Thai AirAsia, Thai
AirAsia X, Thai Smile, Thai Lion Air, and Thai VietJetAir. Of these, Bangkok Airways is independently
held, Thai Smile is a wholly-owned subsidiary of Thai Airways International, Thai VietJetAir is a
VietJetAir subsidiary, and the others are members of either Lion Air Group or AirAsia Group.
Wutthiphum said that while the timing was now right for low-cost acquisitions of other airlines, any
such deal would have to bring clear benefits and economies of scale to Nok Air.
The LCC itself is currently 13.3% owned by Thai Airways, although the flag carrier has identified its
shares in the LCC as surplus under its own restructuring plan. The Jurangkool family controls around
75% of Nok Air's shares.
In addition, in late January 2021, Nok Air issued a wide-ranging Request For Proposals (RFP) for the
dry-lease of turboprop, narrowbody, widebody, and freighter aircraft, with deliveries between 2021 and
2026. According to Cirium, which saw the RFP, the airline was scouting the market for up to nineteen
B737-800s, four DHC-8-Q400s or ATR72-600s, two Boeing widebody aircraft, and a single B737-800
freighter.
Nok Air's current fleet comprises fourteen B737-800s and eight Dash 8-Q400s, with six B737-8s on
order from Boeing (BOE, Chicago O'Hare).
ch aviation

NOK AIR - B737-800W - HS-DBP

Teresa Bairrão - Rogerio Bairrão
Bangkok (Don Mueang) - DMK

NOK AIR - B737-800W - HS-DBX

BRISNACE - Boeing 

Boeing, Nok Air Partner for Humanitarian Aid Flight

Thai airline transports school supplies, clothing to children in Thailand on Next-Generation 737-800 delivery flight

SEATTLE, Aug. 17, 2016 /PRNewswire/ -- Boeing [NYSE: BA] and Nok Air partnered today to launch a special humanitarian aid mission to Thailand.

With the help of the international non-profit organization Vital Voices, whose mission is to invest in and empower women leaders, the airline's 22nd Next-Generation 737-800 will transport and deliver nearly 30 boxes full of relief items including clothes and school supplies.

The items are headed to The Children's Advocacy Center Thailand (ACT), a non-profit organization dedicated to better the lives of abused children and youth in Thailand. Representatives from ACT will deliver the aid to impacted children and youth throughout Thailand.

"We are honored to play an important role for the well-being of our children and youth," said Nok Air CEO Patee Sarasin. "Providing timely supplies to those in need will affect the lives of many in the region. Nok Air is proud to continue playing a vital role in cultivating the well-being of our community."

As part of the Global Corporate Citizenship program, Boeing is committed to building better communities worldwide.

"We are honored that Nok Air partnered with The Boeing Company to deliver humanitarian aid to the many children in Thailand who are in need," said Sam Whiting, Director, Global Corporate Citizenship, Boeing Commercial Airplanes. "We look forward to working closely with Nok Air and non-profit organizations like ACT in Thailand to identify future opportunities."

Based in Bangkok, Thailand, Nok Air is a low-cost carrier that operates an all-Boeing fleet. As part of a tradition in naming its new airplanes, Nok Air has designated this particular airplane 'Fah Kram,' which means blue skies.



The airline currently has two additional Next-Generation 737s on order with Boeing after today's delivery. Nok Air is also a 737 MAX customer with eight 737 MAX 8 airplanes on order.

Boeing, Nok Air Celebrate 737 Delivery, Kick Off Flight Training Program

SEATTLE, March 15, 2016 /PRNewswire/ -- Boeing (NYSE: BA) delivered Nok Air's 21st Next-Generation 737-800 during a ceremony at the Seattle Delivery Center. The celebration marked the third direct-purchased 737-800 to be delivered to Nok Air.

"We are extremely pleased to welcome another new 737-800 to our growing all-Boeing fleet," said Patee Sarasin, CEO of Nok Air. "The 737 provides us with the efficiency and reliability that is needed to succeed in today's competitive environment. This airplane will continue to form the backbone of our fleet and we look forward to providing our customers with the best flying experience onboard our new airplanes."

Boeing Flight Services pilots flew Nok Air's newest 737 to Bangkok and kicked off a world-class flight training program with the airline to help strengthen the capabilities of Nok Air's rapidly expanding flight crew.

"Boeing's high quality flight training program will continue to help us grow our flight crew as we look to meet the ever raising demands with the most outstanding team members," said Sarasin. "Our passengers deserve to be flown by the best pilots in the world and we are working diligently to see that our quality is excellent as our operations continue to expand."

Boeing Flight Services provides integrated offerings to drive optimized performance, efficiency and safety through advanced flight, maintenance and cabin safety training as well as simulator support and services through a global network of campuses on six continents.



According to the 2015 Boeing Pilot & Technician Outlook, an industry forecast of aviation personnel demand closely tied to projections for new airplane deliveries around the globe, 226,000 new commercial airline pilots and 238,000 new technicians will be needed in the Asia-Pacific region through 2034.

"There is a growing demand for well-trained pilots in Thailand, and we look forward to working with Nok Air as they continue to expand their operations in the busy Asia-Pacific region" said Steve Taylor, Chief Pilot, Boeing Flight Services.

Asia leads the world for demand of new commercial airplane deliveries over the next 20 years. By 2034, 14,330 new airplanes worth $2.2 trillion will be needed in the region, according to Boeing's 2015 Current Market Outlook.



By providing customers the support and services they require, such as pilot training, Boeing provides customers a competitive advantage by solving real operational problems, enabling better decisions, maximizing efficiency and improving environmental performance.

Thailand's Nok Air postpones JV with Euro carrier to 2017

Nok Air (DD, Bangkok Don Mueang) has postponed plans to partner an undisclosed European carrier in the wake of a pilot strike that paralysed operations this past weekend.

According to Reuters, CEO Patee Sarasin told a news conference that the agreement would have involved the leasing of aircraft and would have allowed the Thai carrier to deploy capacity to Europe during the high season there while its partner would have deployed its surplus capacity to Asia during Europe's traditional low winter season.

However, in order to secure the contract, Nok Air would have to restructure its operations in line with European Aviation Safety Agency (EASA) standards, a move that its pilots resisted thus leading to Sunday's industrial action.

As such, Nok Air has now postponed the planned partnership until 2017 Sarasin added.

ch aviation

NOK AIR - B737-800W - HS-DBS

Nattawat Lamjoan- Chiang Mai - International, Thailand

Scoot Ranked Best Low Cost Airline by AirlineRatings.com

Scoot's first Boeing 787-9 Dreamliner getting ready for delivery in Seattle (photo courtesy of Boeing)
Scoot is honoured to have won AirlineRatings.com's 2015 Best Low Cost Airline (Asia/Pacific) Award.
Scoot came out tops after a rigorous four month assessment and elimination process overseen by the editorial team from AirlineRatings.com. The process incorporates AirlineRatings.com's unique seven-star rating system, endorsed by the International Civil Aviation Organization, covering 450 airlines.

"Scoot has established itself as a benchmark of low cost travel with a high value proposition," said Geoffrey Thomas, Editor-in-Chief of AirlineRatings.com. He adds, "Travellers tell us -- and we have found -- that Scoot is full of value surprises that turn low cost travel into a pleasure. A low cost airline utilising large aircraft will always result in greater comfort and passenger satisfaction - it's an excellent recipe for success."

In the highly competitive LCC space, the editors of AirlineRatings.com assessed that Scoot had gone above and beyond on a daily basis and focused on the everyday passenger with value propositions. Nominees were judged on excellent staff management relations -- which translates to fun for passengers along with innovation in the cabin -- as well as passenger feedback about the airline sent to AirlineRatings.com.

Said Campbell Wilson, CEO of Scoot, "We're honoured and indeed humbled by the award from AirlineRatings.com. It's an affirmation that we're on the right track, and fulfilling our mission of being a safe and reliable airline, offering great fun and unbeatable value airfares with a dash of Scootitude. To be recognized in this way after less than three years in the air is testament to the effort of the whole Scoot team, and encourages us to strive even higher."

Thailand's Nok Air takes delivery of first Q400NG

Nok Air took delivery of its first of eight Dash 8-400s on order from Bombardier on August 29.

Thai Carrier Nok Air Purchases Two More Bombardier Q400 NextGen Aircraft as it Converts Options to Firm Orders

This brings to four the number of extra capacity Q400 NextGen aircraft on order

 Bombardier Aerospace announced today that low-cost carrier Nok Air of Thailand has converted two previously booked Q400 NextGen aircraft options to firm orders. The options were acquired under a contract announced on November 19, 2013 that also included two firm-ordered aircraft and four purchase rights. At that time, Bombardier also confirmed that Nok Air would be the launch customer for the new extra capacity seating option of the Q400 NextGen turboprop that will allow the aircraft to accommodate up to 86 passengers.

Based on the list price of the Q400 NextGen airliner, the firm order is valued at approximately $64 million US.

NOK AIR - B737-800W - HS-DBP

Steve Bailey- Seattle Boeing Field/King County - USA

Thailand's Nok Air to order Boeing 737 MAX jets: sources

A Nok Air staff member walks past a commercial for the airlines at Don Muang International Airport in Bangkok June 20, 2013. REUTERS/Chaiwat Subprasom
By Praveen Menon and Anshuman Daga

DUBAI/SINGAPORE (Reuters) - Thailand's Nok Airlines is close to placing an order for Boeing 737 jets (BA), several people familiar with the matter said, sidestepping domestic political turmoil to step up a battle between Southeast Asia's budget carriers.
The deal for the latest version of Boeing's best-selling passenger jet, the 737 MAX, is expected to be announced at next week's Singapore Airshow.

Both the airline and the manufacturer declined to comment.
The order could be worth between $1.5 and $3 billion and contrasts with concerns that aviation could be swept up in Thailand's political and economic uncertainty which has helped fuel a recent slide in emerging markets.
Anti-government protests have been blocking parts of Bangkok in the latest round of an eight-year dispute that broadly pits the capital's middle class, southern Thais and the royalist establishment against the mostly poor, rural supporters of Prime Minister Yingluck Shinawatra and her brother, former premier Thaksin Shinawatra.

Nok Air, 39.2 percent owned by Thai Airways International PCL (SET:THAI), competes with Air Asia's (AIRA.KL) Thai venture Asia Aviation PCL (AAV.BK), a venture backed by Indonesia's Lion Air and Bangkok Airways Co. Ltd (BA.BK).
The new order would be the first major aircraft deal for Nok Air, which listed in Thailand in June in order to renew its fleet and which is expanding domestic and international routes.
Two sources said the airline's requirements could include as many as 28 of the 737 aircraft family, but another said barely half of the total would be ordered directly from Boeing.

"Leasing companies will provide part of Nok's requirements. Nok is looking at a number of arrangements as they need the aircraft," said a further source familiar with the deal.
Nok Air operates 14 Boeing aircraft in its fleet of 21, with the remainder comprising ATR and Saab craft.
Thailand's political instability was among risks cited at a meeting of aviation finance leaders last month.
(Additional reporting by Siva Govindasamy and Tim Hepher; Editing by Jeremy Laurence and Pravin Char)

 

NOK AIR - B737-800, HS-DBH

NOK AIR