Nok Air (DD, Bangkok Don Mueang) aims to raise THB5 billion baht (USD150.5 million) next year ahead of a planned exit from its business rehabilitation in 2026. CEO Wutthiphum Jurangkool has told the Bangkok Business outlet that the money would be used to acquire new aircraft, improve liquidity, and pay down remaining debt.
When the low-cost carrier filed for court-supervised business rehabilitation in 2021, it owed creditors THB27.278 billion (USD820.6 million). As part of the rehabilitation process, the administrator negotiated that debt down to THB5.4 billion (USD162.4 million). Nok Air has since paid THB5 billion (USD150.4 million), leaving THB400 million (USD12 million) outstanding.
Wutthiphum says that as the carrier's turnaround continues, it will keep refining operations to trim costs and look at new markets to increase revenues. According to the ch-aviation PRO airlines module, Nok Air flies to 21 airports in Thailand, China, and India with a fleet of fourteen B737-800s.
In the first half of 2024, Nok Air generated a net profit of THB734.78 million (USD22.1 million) after posting a THB388.24 million (USD11.7 million) loss in the comparable 2023 period.
The last of eight DHC-8-Q400s were decommissioned in 2023, and Wutthiphum says the intention is to purchase another six B737-800s to be delivered over the remainder of the decade. In the interim, Nok Air is preparing to lease four B737-800s in 2025.
"We have adjusted our business plan a lot, removing aircraft that do not generate income and adding aircraft models that are popular on the market, focusing on using the same model of aircraft to reduce maintenance costs and spare part procurement," said Wutthiphum. "After we removed the Q400s, we immediately reduced our losses because we did not have to spend money on maintenance and also reduced delays."
The CEO says Nok Air will emerge from the five-year business rehabilitation in a strong position. Nok's passenger load factor is currently running at around 85% and is expected to hit approximately 90% during the peak season, resulting in the airline carrying around six million passengers this year.
Wutthiphum added that Nok Air intends to open a base at Bangkok Suvarnabhumi to cater to passengers coming on and off international flights, adding Chiang Mai, Krabi, and Phuket to the destinations Nok already flies to from Bangkok's biggest airport. In addition, Nok Air is partnering with Thai Airways International (which owns a 8.91% stake in Nok Air) and other international operators and will provide feeder flights connecting to and from international services.
