In my opinion, Nok Air has to change its logo first...
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|Nok Air puts faith in budget market growth |
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|By William Barnes in Bangkok - Financial Times |
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|Published: July 22 2004 15:58 | Last Updated: July 22 2004 15:58 |
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| (Embedded image moved to file: pic11538.pcx) |
| |
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| (Embedded image moved to file: pic01869.pcx) |
| |
| |
|Thailand's third low-cost airline, Nok Air, was launched on Thursday on |
|the back of some pugnacious optimism for a budget market that appears |
|likely to accelerate before it slows. |
| |
| (Embedded image moved to file: pic19912.pcx)(Embedded image moved|
| to file: pic25667.pcx)(Embedded image moved to file:|
| pic26299.pcx)|
| |
| |
|But with only two 149-seat 747-400s it is still a small creature with |
|big ambitions. |
| |
| |
|"We're creating an entirely new business. We're flying people who have |
|never flown before, " said chief executive Patee Sarasin. |
| |
| |
|Nok, which means bird in Thai, expects to expand quickly as its business|
|swells: it "wet leases" aircraft - with aircraft, crew, maintenance and |
|insurance all included - from its parent Thai International Airways, |
|which holds 39 per cent of the equity. |
| |
| |
|The market for domestic air travel in Thailand has already exploded with|
|the creation of two budget carriers, Thai AirAsia and One-To-Go, which |
|have sought to stir interest with cut-price flights that sometimes cost |
|less than the taxi fare to the airport. |
| |
| |
|Domestic passenger travel has typically been increasing by six or seven |
|per cent a year. But this year has seen a 30 per cent expansion on a |
|wave of interest in budget travel and Nok Air believes it could climb by|
|an annual 30-40 per cent over the next few years. |
| |
| |
|"We're not making silly predictions. We're going to keep a sharp eye on |
|profits. We've learnt from the overcrowding of the market in North |
|America and Europe," said Mr Patee. |
| |
| |
|Nok Air's chief executive dismisses suggestions that as its venerable |
|creator, Thai International, has a reputation for carrying heavy |
|staffing overheads, Nok will be incapable of matching the frenetic |
|cost-cutting of Thai AirAsia and its boss Tony Fernandes. |
| |
| |
|"We will take the best from our relationship with Thai. They are happy |
|to take advantage of connections so why can't we? They plan to market |
|their airline to [parent] Shin Corp's customers, why can't we use Thai |
|when its useful?" said Mr Patee. |
| |
| |
|Mr Fernandes blasted apart Thailand's previously cautious and red-tape |
|bound domestic airline industry when he persuaded the Thai prime |
|minister Thaksin Shinawatra's Shin Corp to take his Malaysian company on|
|as a local partner. It quickly won special landing concessions and air |
|rights. |
| |
| |
|Thai International has engaged in a vigorous campaign of promotions to |
|defend its home turf from the aggressive newcomers but may secretly |
|delight in any Nok Air success, said airline analyst Komsum Suksumrun at|
|Phatra Securities. |
| |
| |
|Nine per cent of Thai's revenues are generated by domestic flights but |
|most of the routes are unprofitable. |
| |
| |
|"I predict it will quietly give up some routes to Nok. It is a very |
|profitable international airline that doesn't need the hassle of flying |
|lots of short-term routes," said Mr Komsum. |
| |
| |
|Thai will make at least Bt16.7bn ($410m) net profit this year, one of |
|the carrier's best ever years, according to Phatra's forecast. |
|------------------------------------------------------------------------|
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======
|------------------------------------------------------------------------|
|Nok Air puts faith in budget market growth |
|------------------------------------------------------------------------|
|By William Barnes in Bangkok - Financial Times |
|------------------------------------------------------------------------|
|Published: July 22 2004 15:58 | Last Updated: July 22 2004 15:58 |
|------------------------------------------------------------------------|
| (Embedded image moved to file: pic11538.pcx) |
| |
|------------------------------------------------------------------------|
| (Embedded image moved to file: pic01869.pcx) |
| |
| |
|Thailand's third low-cost airline, Nok Air, was launched on Thursday on |
|the back of some pugnacious optimism for a budget market that appears |
|likely to accelerate before it slows. |
| |
| (Embedded image moved to file: pic19912.pcx)(Embedded image moved|
| to file: pic25667.pcx)(Embedded image moved to file:|
| pic26299.pcx)|
| |
| |
|But with only two 149-seat 747-400s it is still a small creature with |
|big ambitions. |
| |
| |
|"We're creating an entirely new business. We're flying people who have |
|never flown before, " said chief executive Patee Sarasin. |
| |
| |
|Nok, which means bird in Thai, expects to expand quickly as its business|
|swells: it "wet leases" aircraft - with aircraft, crew, maintenance and |
|insurance all included - from its parent Thai International Airways, |
|which holds 39 per cent of the equity. |
| |
| |
|The market for domestic air travel in Thailand has already exploded with|
|the creation of two budget carriers, Thai AirAsia and One-To-Go, which |
|have sought to stir interest with cut-price flights that sometimes cost |
|less than the taxi fare to the airport. |
| |
| |
|Domestic passenger travel has typically been increasing by six or seven |
|per cent a year. But this year has seen a 30 per cent expansion on a |
|wave of interest in budget travel and Nok Air believes it could climb by|
|an annual 30-40 per cent over the next few years. |
| |
| |
|"We're not making silly predictions. We're going to keep a sharp eye on |
|profits. We've learnt from the overcrowding of the market in North |
|America and Europe," said Mr Patee. |
| |
| |
|Nok Air's chief executive dismisses suggestions that as its venerable |
|creator, Thai International, has a reputation for carrying heavy |
|staffing overheads, Nok will be incapable of matching the frenetic |
|cost-cutting of Thai AirAsia and its boss Tony Fernandes. |
| |
| |
|"We will take the best from our relationship with Thai. They are happy |
|to take advantage of connections so why can't we? They plan to market |
|their airline to [parent] Shin Corp's customers, why can't we use Thai |
|when its useful?" said Mr Patee. |
| |
| |
|Mr Fernandes blasted apart Thailand's previously cautious and red-tape |
|bound domestic airline industry when he persuaded the Thai prime |
|minister Thaksin Shinawatra's Shin Corp to take his Malaysian company on|
|as a local partner. It quickly won special landing concessions and air |
|rights. |
| |
| |
|Thai International has engaged in a vigorous campaign of promotions to |
|defend its home turf from the aggressive newcomers but may secretly |
|delight in any Nok Air success, said airline analyst Komsum Suksumrun at|
|Phatra Securities. |
| |
| |
|Nine per cent of Thai's revenues are generated by domestic flights but |
|most of the routes are unprofitable. |
| |
| |
|"I predict it will quietly give up some routes to Nok. It is a very |
|profitable international airline that doesn't need the hassle of flying |
|lots of short-term routes," said Mr Komsum. |
| |
| |
|Thai will make at least Bt16.7bn ($410m) net profit this year, one of |
|the carrier's best ever years, according to Phatra's forecast. |
|------------------------------------------------------------------------|
__________________________________________________________
This e-mail contains privileged or confidential information
which is intended only for the use of the recipient(s) named
above. If you have received this message in error, please
notify the sender immediately and delete all copies of it.
Thank you.
__________________________________________________________
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