CEO Wutthiphum Jurangkool talks about his plans for Nok Air during turbulent times for the aviation industry.
Wutthiphum Jurangkool talks about leading the budget carrier in turbulent times.
Back in June 2019, Wutthiphum Jurangkool started a new chapter in his life with two roles at the same time: he was appointed chief executive of Nok Air two days before getting married to his long-time girlfriend.
In the current year, he’s on a mission to lead the loss-ridden local budget carrier through heavy turbulence, particularly the coronavirus that is shaking the aviation business hard.
Mr Wutthiphum, 40 years old and an heir to auto parts maker Summit Corporation, brought with him his experience and track record of saving a business in the red zone, hoping to repeat that success.
“I turned a new page for SE-ED Book Center, from loss to profit,” he says. “Then my family decided to pass on another mission to me at Nok Air.”
Mr Wutthiphum inherited his entrepreneurial-minded attitude from his father, who insisted that his six sons spend one month during school break interning at one of the family’s plants.
As a result he got to experience a complete range of manufacturing, from shoes to exhaust pipes, giving him practical knowledge and a strong sense of responsibility.
BIGGER IS BETTER
Working closely with Japanese counterparts in the auto industry for five years after graduation honed Mr Wutthiphum’s working habits into a disciplined and efficient manner. The strong connection with Japanese partners also led to insight into aviation as he flew around the region.
The opening of Nok Air’s new Japan route to Hiroshima last year was based in part on his observation that Summit Corporation must connect regularly with a big client, Mazda Motor Corporation, which is headquartered in that southwestern city of Japan.
Without direct flights, it’s inconvenient for both sides to travel.
“This city also provides a lot of attractive tourism sites, so we’re confident of strong demand for this route,” Mr Wutthiphum says.
Another integrated opportunity was to let Nok Air ink a deal with Summit Corporation to provide special airfare to corporate passengers. The group has 20,000 employees (50,000 if including joint venture companies).
Moreover, Mr Wutthiphum plans to furnish over 350 branches of SE-ED Book Center with a Nok Air ticket distribution counter to serve passengers in the provinces, as 60% still prefer to buy tickets from the counter instead of relying on technology-based platforms.
“We have to blend in this distribution channel to match the behaviour of local customers who are not yet tech-savvy users,” he says.
Ten branches in Bangkok are joining the pilot programme, and book stores nationwide will follow in the next few months.
EXPECT THE UNEXPECTED
Last year, airlines in Thailand confronted the headwinds of the economic slowdown and the surging baht. The hardship continued in a more urgent style this year as the coronavirus emerged as a new threat.
“Initially we aimed to end the deficit within 1-2 years, but we have to revise our plan completely because the impact of coronavirus is unpredictable and is expected to linger until the first half of this year,” Mr Wutthiphum says.
Besides solving the financial issue, he has set a long-term goal for Nok Air to create sustainable development in the same manner as world-class carriers.
Building confidence among 1,600 Nok Air employees and 200 subcontracted workers is the first priority, followed by providing better service to passengers.
In the past, Nok Air was notorious for flight delays. Mr Wutthiphum committed to improving the carrier’s reputation. Now the on-time performance of the airline has risen to 87%, exceeding the global standard of 80-85%
“We used the strategy of saving spare aircraft in case of emergency,” he says. “Now the airline can replace the new equipment to serve passengers on the troubled flight right away without waiting for an available aeroplane.”
Last but not least, Mr Wutthiphum wants to restore the confidence of investors and state enterprises with stakes in the company.
“We have to make sure that the Thai aviation industry will not be dominated by foreigners,” he says. “As long as our family is here, I’d like to ensure that the major shareholder of Nok Air will not be a foreign investor, in order to prevent the country from being paralysed when facing sanction or international conflicts.”
EDUCATION FIRST
Venturing into a brand-new industry, Mr Wutthiphum realised he had a lot of things to learn.
Apart from using his experience from Summit Corporation, he has a shortcut to success: ask the experts.
He holds regular discussions with veteran airline executive Yodchai Sudhidhanakul, chief executive of NokScoot, the joint venture of Nok Air and Singapore-based Scoot.
He’s also passionate about reading, a habit engrained in him since childhood.
“I love education and took it seriously in the classroom,” Mr Wutthiphum says. “I love to keep learning all the time, such as now that I’m expanding my perspective towards real estate business and finance at the same time.”
His ultimate life goal is to establish an academic institution, particularly in engineering, to offer bachelor’s degree courses and job opportunities after graduation.
He aims to use the knowledge from educational administration to develop more effective training programmes to enhance employees’ capabilities.
In addition, Mr Wutthiphum is determined to pay back the local community by recruiting from the young generation in the provinces. In the past he provided opportunities for young workers who needed a job at Summit Corporation factories in Bangkok and Ayutthaya.
“I have discussed with partners and learned about the differences in each education system,” he says. “This accumulated knowledge will be useful when it comes to my own institution.”
He hopes to pursue this dream to establish an academy before he turns 50. In the meantime, he will continue to challenge himself with new lessons for life.
“However, devotion to reviving Nok Air is my priority at this moment,” Mr Wutthiphum says. “Nok Air is one of the national assets that is going to be with the Jurangkool family and the Thai people in the long run.”
WORK-LIFE BALANCE
“My parents are the great role model of working hard yet making efforts to spend time with family,” he says. Mr Wutthiphum is expecting his first child at the end of this month.
As a soon-to-be dad, he’s preparing all the essentials for his baby boy in advance.
“I would like to raise my children independently, the same way my parents did,” he says. “So they can decide to learn and be whatever they want when they grow up. Even though I would like them to continue the family’s business legacy.”
He is in the process of moving to a new home near Don Mueang airport to efficiently manage time for both Nok Air and his family.
On his relationship with cousin Thanathorn Juangroongruangkit, the former Future Forward Party leader, Mr Wutthiphum says they have not seen each other for nearly a decade, due to different paths in life and career.
“We’re familiar to each other from school days at Triam Udom Suksa School, but we stayed apart later on,” he says. “Personally,
I am not that into political stuff.”
"We have to make sure that the Thai aviation industry will not be dominated by foreigners. As long as our family is here, I’d like to ensure that the major shareholder of Nok Air will not be a foreign investor.
WUTTHIPHUM JURANGKOOL
DIRECTOR AND CHIEF EXECUTIVE, NOK AIRLINES PLC