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Thailand’s Nok Air plans restructuring


August 11, 2008

Thailand’s Nok Air plans restructuring
Nok Air, a Thai low-cost airline, plans to undergo a restructuring process after an accumulative loss of 114 million baht ($3.35 million), reported the Thai News Agency (TNA) on Sunday.

TNA quoted Nok Air’s chief executive Patee Sarasin as saying that the airline, 39 percent owned by Thailand’s national flag carrier Thai Airways International, had recently submitted a

restructuring plan to ministry of transport, citing major losses due to the soaring global oil prices which also affected all other airlines.

In a bid to reduce its losses, Patee said, Nok Air has already cut its daily flights down to 20 from 70, reduced salaries of senior executives and some junior staff, and terminated the

employment contracts of outsourced employees.

The airline executive said the actions were implemented a month ago, but have not yet produced tangible results, as the current falling oil prices would produce a result in September. At

present, Nok Air passenger capacity is about 88-90 per cent per flight.

The airline started operations on July 23, 2004, and began its first international service to Bangalore at the end of May last year on a daily basis but suspended operations to that route in

November, citing non-availability of aircraft and to allow service to other lucrative routes in Southeast Asia, especially Vietnam.

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