Nok Air out of “intensive care”
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Nok Airlines, the Thai low-cost carrier that was on the verge of bankruptcy last year, has announced profits of THB82 million (US$2.4 million) for Q4 2008, according to a Bangkok Post report. Additionally the report said that the airline had registered a THB30 million profit for January 2009.
“We are out of the ICU (intensive care unit) now and back to a normal state,” Nok’s Chief Executive, Patee Sarasin, was reported saying.
Last year Nok embarked on a huge restructuring effort, which included shedding nearly half its 1,000-strong workforce, halving its Boeing 737 jet fleet to three, cutting flight routes and frequencies, and cutting salaries. Surprisingly it also benefitted from the closure of Bangkok’s Suvarnabhumi airport by anti-government protesters. From its base at the less-affected Don Meuang airport, Nok was reportedly able to profit from charter requests from multinational companies evacuating their staff, as well regular services.
Nok Air managed to earn a profit of THB42 million in December alone, Patee revealed. Now while other airlines are expecting the worst, Patee is more optimistic.
“Judging from the domestic travel level in the last holiday season, when we put in a lot of extra flights, there was substantial demand,” the Bangkok Post reported him as saying.
If Nok Air emerges from this recovery period in good shape, it may add two additional Boeing 737-400s next year to capitalise on the expected return of demand growth, the report added.
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