Nok Air OKs B490m for NokScoot

Nok Airlines Plc approved a 490-millionbaht capital injection yesterday to affiliated carrier NokScoot Airlines.

Nok Air’s shareholders gave the green light for the investment, which will retain Nok Air’s 49% holding in NokScoot, an airline that provides medium-haul low-cost carrier (LCC) services.

“It’s a good investment for the future and fulfilling our commitment in the original joint venture agreement to establish NokScoot,” Nok Air chairman Prasert Bunsumpun said.

NokScoot is increasing its capital by 1 billion baht to 3 billion to support the expansion, which will let the airline enter northern Asia and India and increase frequency of flights on existing routes.

With the fresh funds, NokScoot will be able to proceed with its fleet enlargement and carry out business initiatives to create incremental income and profitability that will be shared by Nok Air, according to Mr Prasert.

NokScoot was launched in 2014 as a partnership of Nok Air and Singapore Airlines subsidiary Scoot. It operates flights out of Bangkok’s Don Mueang airport to cities in China, Taiwan and Japan.

Nok Air and NokScoot have also set up an interline arrangement that will allow passengers travelling from Chiang Mai to Bangkok on Nok Air to easily transfer to a NokScoot international flight without having to recheck baggage or change airports.