Nok Air may move into hotels
Thai low-cost carrier Nok Air may expand into the world of hotels, according to a report in the Bangkok Post. The airline has experienced troubled times recently, with only a rescue package by part-owners Thai Airways keeping the airline flying as it struggles to cope with mounting costs. However Nok’s Chief Executive Patee Sarasin believes the brand value can still be exploited, with a plan being drawn up to develop a chain of small, mid-market hotels in key Thai cities.
“We are looking at hotels with simple but hip designs, very clean with very reasonable prices at locations with easy accessibility to public transport systems,” Patee told the newspaper.
The development of Nok hotels would appear to be a wise move for Nok, as it attempts to diversify away from the currently high-risk world of aviation. Nok Air is struggling desperately to stay afloat with cumulative losses exceeding THB110 million (US$3.3 million).
“We cannot put all our eggs in one basket,” Patee added.
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