Nok Air puts bet on China

Nok Air is gearing up its China campaign with the launch of a series of new charter flight routes, a move instrumental to its business turnaround bid.

The cash-strapped budget airline will start 10 more China-bound routes from next month, adding to four announced recently.

Marking the airline’s latest bid to deepen its China campaign, the carrier is using Navy-operated U-tapao airport in Rayong as a second launch pad in addition to its base at Bangkok’s Don Mueang airport.

According to the SET-listed airline, six Chinese cities — Yinchuan, Baotou, Linyi, Yichang, Nanchang, and Haikao — will be served non-stop from U-tapao, where only a handful of airlines operate from. Nok Air will also introduce two more China charter routes from Don Mueang — to Zunyi and Changsha.

The increasing focus on China comes as part of Nok Air’s new move to rationalise its limited international route coverage. This will see the carrier dropping its two daily Bangkok-Hanoi flights from Oct 29.

It will also start a service linking the Thai northwestern city of Mae Sot with Yangon, at three flights a week in October with Bombardier Q400 turboprops.

Nok Air chief executive Patee Sarasin told the Bangkok Post yesterday said the move to boost its China footprint, drop the unprofitable Hanoi service and introduce the Mae Sot-Yangon connection is part of its efforts to turn black next year.

In July, Nok Air announced four China routes, adding to the seven between Thailand and the mainland it had earlier established.

The four additional routes are BangkokYinchuan (one flight a week since July 22); Bangkok-Zhengzhou (four a week from Aug 2); Phuket-Kunming (three a week, from Aug 15) and Phuket-Zhengzhou (four a week, beginning Nov 1).

Already in service previously are Chiang Mai-Nanning, Phuket-Chengdu, Bangkok-Nanning, Phuket-Nanning, Bangkok-Baotou, Bangkok-Nantong and Bangkok-Yancheng.

The entire capacity on Nok Air’s existing and future China-bound flights is sold to Chinese tour operators.

Mr Patee said these Chinese flights allow the airline to optimise utilisation of its Boeing 737-800 jets, from about 7-8 hours a day per aircraft to 11-12 hours, leading to lower operating costs and better balance sheets.

While China serves as main focus for raising its international profile, Nok Air is also eyeing elsewhere.

According to Pinyot Pibulsonggram, vice-president for marketing and sales at Nok Air, Okinawa and Fukuoka in Japan, Cebu in the Philippines, and Kolkata, Hyderabad and Chennai in India are on its radar screen over the next 18 months.