Thursday, June 26, 2008

THAI board to decide future of Nok Air

Thai Airways International will decide the future of its loss-ridden low-cost airline Nok Air today, but will not increase its holding, THAI president Apinan Sumanaseni said yesterday. At the same time, a Nok Air executive said the airline will not stop flying.

Mr Apinan said the airline will be officially informed of today's decision at a Nok Air board meeting on July 4.

THAI has a 39% stake in Nok Air, which has been hard hit by rising fuel costs and falling traffic.

Some estimate the airline's losses at over one billion baht. However, Nok Air executive vice-president Sehapan Chumsai denied the accumulated loss is that high. The airline will keep flying, he said. Services and ticket sales will continue as normal.

He said Nok Air management had tried to adjust the airline's operations to cope with rising fuel prices, as had other airlines. Nok Air had suffered losses only during the last four to five months.

The airline would be able turn its business around eventually, he said.

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