Nok Air's turnaround plan gains traction
Bangkok, August 21, 2018 -- Nok Air is gearing up to add new dynamisms to its business rehabilitation plan that has gained ground.
The SET-listed low-cost airline will strive to bring the fundamental achievements made so far into great visibility.“We believe we are in the 'phase of the business stabilizing’, and that set the stage for 'rebuilding' the airline next year,” said Nok Air CEO Piya Yodmani.
He said it is imperative that the plan to restore a strong balance sheet does not lose momentum but gaining impetus.
The heart of Nok Air's business turnaround is about to migrate from being red to black by means of cost control, boosting revenue, efficiency gains, network expansion and the adoption of leaner-but-meaner organization, he explained.
In the backdrop of hostile operating environment marked intensifying competition, fuel price hike and foreign exchange fluctuations, Nok Air will need to align its business practice and strategy accordingly.
Last year saw Nok Air adopted changes in many fronts along this line and thanks to a capital injection, and that brought about visible results.
Losses based on Nok Air's operation in the first-half of this year narrowed by 14.78% from the same period last year to were THB 774.68 million.
Revenue leaped 2.6% over the same period last year to THB 7.67 billion.
This year will see the airline putting more emphasis on new business initiatives and partnership, greater aircraft utilisation, introduction of longer routes and more international services especially to China, and adjusting flight plans for optimal value, Mr Piya stated.
Moving into a stronger future, Nok Air will next year expand its regional network, forging greater cooperation with business allies and exploring new investment opportunities.
Nok Air is transforming from the low-cost carrier (LCC) business model, in which fare competition is the name of the game, into a "lifestyle" landscape by offering fare and service ranges which match customers’ preferences under the “Choose Your Nok” concept.
To support that move, Nok Air has joined THAI Group in a loyalty programme which allows Nok Fan Club members to earn Royal Orchid Plus (ROP) mileage when travelling with Nok Air.
These exercises constitute our aspiration to make Nok Air an airline of choice for travellers, he added.
“All in all, Nok Air is on the right track for a foundation building and heading for a robust future," he concluded.