‘Better off selling noodles’, says Nok Air chief
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Thai low cost carrier (LCC) Nok Airlines will continue operations, shareholders decided on Saturday. However an agreed ‘rehabilitation package’ will see the airline’s fleet halved and salaries of senior staff cut, the Bangkok Post has reported. In addition, Nok board said that it is likely to cease operating altogether if oil prices exceed US$160 a barrel. Since July 2007, Nok has seen losses of over THB114 million (US$3.4 million), mainly due to spiralling oil prices. ”If (oil) prices touch US$160 a barrel, no airline, not just Nok Air, can survive. If it reaches US$170 a barrel, I am better off selling noodles,” said Patee Sarasin, Chief Executive of Nok Airlines. Under the agreed package, Nok’s senior management have agreed to a 20% pay cut, with Patee himself agreeing volunteering to a 25% salary reduction. However the airline has said it will not be making any of its 1,000 staff redundant. Instead the airline plans to ground 5 of its total fleet of 10, having recently cut its services from 62 per day down to 30. Thai Airways holds a 39% stake in the LCC.
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