Business

Nok Air Offered Lifeline By Thai Government

Thailand based LCC – low-cost carrier – Nok Air has received a government thumbs up to work towards rehabilitating its failing business after suffering devastating losses as a direct cause of the COVID-19 pandemic.

The business plan the company will work through to help save the popular airline will be finalised in the next two months.

“Even though Nok Air can reduce accumulative losses, the airline has suffered from the outbreak, which has grounded our fleet for months,” Kasemsant Weerakun, Nok Air’s director said on announcing the news.

“The (Thai) court has the jurisdiction to rehabilitate the company’s business. This the only path for us.”

At the end of July, the company’s 26 billion baht debt, led it to go into administration and file a ‘rehabilitation petition’ with a Thai court in a bid to use its 23 billion baht of assets, aircraft included, to help work towards a rescue plan.

Five individuals including Nok Air chief executive Wutthiphum Jurangkool, and an outside agency are being charged with drawing up the full rehabilitation plan.

Efficient route management and leasing of aircraft, as well as maintenance agreements receiving a complete overhaul are anticipated to be the centerpiece of the upcoming business plan, accounting for a huge percentage of the airline’s overall expense bill.
Existing routes across Thailand will be reviewed as will routes to other Asian nations including Japan, India, and Vietnam.
Early reports do indicate that flights to the Philippines and Middle East region may be added to help turn a profit.
“Nok Air still has adequate liquidity while the automatic stay helps preserve cash flow,” Mr. Kasemsant added.
Lisa Conklin

Lisa is an Eastender from London in her second year in Taipei where she teaches English, and in her spare time writes poetry. She is a practicing vegan and lover of yoga who lives 'off-grid' as much as possible. She is our weekend editor.

Recent Posts

Federal Judge blocks Trump’s funding freeze to prevent immediate disruption

A federal judge on Tuesday temporarily halted a directive from President Donald Trump that sought…

1 week ago

President Trump signs executive orders that will reshape the U.S. Military

President Donald Trump announced on Monday that he signed a series of executive orders significantly…

1 week ago

US drops tariff threat as Colombia agrees to accept deportees without restrictions

The United States has withdrawn its plan to impose 25% tariffs on Colombian goods after…

1 week ago

TikTok ban takes effect in the U.S. but President Trump might give it a 90-day reprieve

In a significant development for the popular social media platform TikTok, a U.S. ban on…

2 weeks ago

President Trump’s inauguration moved indoors due to cold weather forecast

President-elect Donald Trump’s inauguration ceremony will be held inside the Capitol Rotunda on Monday, a…

3 weeks ago

Israel and Hamas sign ceasefire and hostage release agreement in Doha

An agreement between Israel and Hamas to facilitate a ceasefire and the release of hostages…

3 weeks ago