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Nok Air to seek B3bn loan, reorganise flight routes

Nok Air to seek B3bn loan, reorganise flight routes

BANGKOK: Troubled budget carrier Nok Air’s plan to seek a B3-billion loan to improve its cash flow has been approved at a meeting of its shareholders, acting CEO Pravej Ongartsittigul said yesterday (Apr 25).

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By Bangkok Post

Friday 26 April 2019 08:40 AM


Nok Air’s plan to seek a B3-billion loan to improve its cash flow has been approved at a meeting of its shareholders. Photo: Nok Air

Nok Air’s plan to seek a B3-billion loan to improve its cash flow has been approved at a meeting of its shareholders. Photo: Nok Air

The loan is required to ensure the airline can continue its general operations as well as its business turnaround plan, said Mr Pravej.

Nok Air is accelerating its plan in the hope of staunching further losses, he said.

The airline still faces several risks due to increasingly fierce competition in the sector, compounded by volatile fuel prices, he said.

These factors were hindering its attempts to rein in its operating costs, he said.

Most airlines are struggling to limit their losses, Mr Pravej claimed.

However, the airline is determined to reorganise its routes to match demand and augment profits, he said.

Better aircraft utilisation, especially on international routes, could generate more income and push up profits, he said, adding that revenue from ticket sales on those routes is generally higher than domestic routes.

Earlier this month, the Civil Aviation Authority of Thailand (CAAT) said the Transport Ministry was keeping a close eye on Nok Air after a “worrying” sign on its balance sheet was detected following an audit.

 

Read original story here.