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.

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