Nok Air in crisis talks
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Board directors of Nok Air and Thai Airways, which holds a 39% stake in the low-cost carrier, met yesterday to discuss the future of the airline, the Bangkok Post reported.
According to the report, the board plans to outline a strategy to resolve Nok Air’s problems, worsened by spiralling costs of jet fuel, which now accounts for 50% of the carrier’s operating costs.
The LCC has already begun cutting routes, suspending its twice-daily Bangkok-Hanoi service last month, and reducing frequencies on domestic routes this month.
”We have to make a decision on which direction we should head,” THAI President Apinan Sumanaseni was quoted saying.
He was quoted saying that raising ticket prices to cover fuel costs might hinder sales.
”LCCs would lose their popularity and travellers would return to full-service airlines.”
Nok Air currently operates 52 flights a day.
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