Nok Air to Expand with New Base at Bangkok Suvarnabhumi in 2024
Nok Air, a leading low-cost carrier based in Thailand, is setting the stage for significant expansion by establishing a new base at Bangkok Suvarnabhumi Airport, Thailand’s primary international gateway, in the second half of 2024. Chief Executive Wutthiphum Jurangkool revealed to the Bangkok Post the airline’s strategic move to diversify its operations beyond domestic passenger flows, marking a pivotal shift in its growth trajectory.
The initial phase of the Suvarnabhumi base will see the deployment of one or two aircraft, leveraging Nok Air’s partnership with Thai Airways International, a minority shareholder. The collaboration is poised to enhance connectivity for Thai Airways’ passengers on domestic routes from Suvarnabhumi, potentially evolving from an interline partnership to a codeshare agreement in the future.
This expansion comes at a time when Thai Airways, even with the integration of its domestic and short-haul subsidiary Thai Smile, faces a shortfall in aircraft to adequately cover the Thai domestic market. Currently, a significant portion of Thai Airways’ narrowbody fleet, consisting of twenty A320-200s, is allocated to regional international routes, underscoring the opportunity for Nok Air to fill the domestic gap.
The move to Suvarnabhumi represents a strategic diversification for Nok Air, which, along with Thai Lion Air, has primarily operated from Bangkok Don Mueang Airport. This decision not only positions Nok Air alongside other LCCs with operations at Suvarnabhumi but also aligns with its ambition to bolster its international route network, particularly to India and China, from Don Mueang.
Wutthiphum emphasized the necessity of international expansion for profitability, aiming to increase international route revenue from the current 5% to 10%, mirroring pre-pandemic levels. The airline’s plans to grow its fleet with three additional B737-800s further support this strategic direction, despite scaling down from the previously anticipated eight aircraft in 2024.
The airline’s cautious approach to the Boeing B737 MAX, considering ongoing quality concerns and passenger confidence, reflects a prudent strategy in fleet modernization. With a focus on restructuring and a proposed capital raise of THB600 million (USD16.8 million) in 2024, Nok Air is gearing up for a transformative phase in its operational and financial roadmap.
Nok Air’s expansion into Bangkok Suvarnabhumi and its continued growth from Don Mueang signal a new era for the airline, emphasizing its commitment to enhancing domestic connectivity and international reach. As Nok Air navigates this expansion, the strategic base at Suvarnabhumi not only diversifies its operational footprint but also strengthens its competitive position in the dynamic Thai aviation market.