Does your Thai wife keep you on a short leash?

[rooster59]

THAI board to give go-ahead for Nok Air recapitalisation

By THE NATION

 

Patee Sarasin

 

THE BOARD of directors of Thai Airways International (THAI) is expected to greenlight a new capital increase plan for Nok Air within the next two to three months following the resignation on Thursday of Nok Air’s chief executive officer Patee Sarasin.

 

Nok Air, which is 21-per-cent owned by THAI, told the Stock Exchange of Thailand in a statement that Patee would remain a director and vice chairman of the beleaguered budget airline, while Piya Yodmanee has been named Nok Air’s new CEO effective from Thursday.

 

Airline sources said THAI has been working with other shareholders of Nok Air who control another 40 per cent of the carrier to formulate a new recapitalisation plan and chart a new business course.

 

In an interview with Krungthep Tulakij newspaper, THAI chairman Areepong Bhoocha-oom said the national-flag carrier, which co-founded Nok Air, will help the low-cost carrier survive the ongoing challenges, especially its capital increase requirement. Earlier, Somjaineuk Engtrakul, chairman of Nok Air’s board, also tendered his resignation.

 

Nok Air was earlier battered by severe pilot and other staff management problems as well as fierce competition from other low-cost carriers. Due to strikes by pilots, multiple flights had to be abruptly cancelled last year causing massive inconvenience to passengers and prompting the airline industry’s regulatory body to issue warnings to Nok Air.

 

Areepong said THAI would have no problem in supporting Nok Air’s new capital increase plan, even though its board in May this year had decided not to do so, resulting in the loss-making budget airline’s inability to raise cash to tackle its liquidity problem.

 

At the last failed attempt at recapitalisation, there was a proposal to hike Nok Air’s capital from Bt625 million to Bt1.41 billion.

 

THAI had said previously that it would not subscribe to the new shares because Nok Air did not have a clear business revival plan.

 

Last week, Areepong said there would be an amendment of Nok Air’s regulations to boost the airline’s management efficiency, while noting that Nok Air has a strong brand name and a high 80 per cent load factor, but it needs to adjust airfare prices and better manage costs to stay competitive.

 

According to Areepong, THAI intends to see Nok Air survive with a better business performance regardless of whether the national-flag carrier remained Nok Air’s single largest shareholder.

 

He added that Nok Air also used a lot of THAI facilities in its operations so there would be further cooperation.

 

Besides Nok Air, THAI also operates Thai Smile as a subsidiary airline for premium domestic services to help it compete with other low-cost carriers such as Thai Air Asia.

 

Nok Air shares yesterday rose 8.79 per cent, closing at Bt5.20 per share. The share peaked at Bt6.05 during day trade, rising 26 per cent from the day’s opening. The volume of trade was 955.1 million shares. An analyst at Asia Plus Securities said that investors felt confident about the attempt to revitalise the airline and they also believed that the second round of fund-raising would be successful. 

 

Source: http://www.nationmultimedia.com/detail/business/30326810

 

 

-- © Copyright The Nation 2017-09-16

[ExpatOilWorker]

They just got a cash injection in May (2017) and now they need more money??

 

News

Thai Airways Int'l loses majority shareholding in Nok Air

Nok Air Boeing 737-800© Boeing

01JUN2017

Nok Air (DD, Bangkok Don Mueang) has issued a notification of changes in its shareholding structure, confirming that major shareholder Thai Airways International (TG, Bangkok Suvarnabhumi) has reduced its stake to 21.57%, following a rights offering last month in which THAI did not participate.

The two next largest shareholders, brothers Thaveechat Chulangkul and Nuttapol Chulangkul holding 15.64% and 13.29% respectively, are now effectively the largest shareholder group with a combined share of 28.93%.

Nok Air successfully raised its registered capital in May through the issuance of new shares. Despite THAI choosing not to take part, the offering was oversubscribed, raising Nok's capital from THB625 million (USD18.3 million) to THB1.41 billion (USD41.2 million). The cash injection was needed after a disappointing 2016 saw a net loss of THB2.8 billion (USD81.8 million). Interestingly, Nok CEO Pattee Sarasin, also did not participate, diluting his stake down to 1.29%.

News site Prachachat quotes an anonymous source as saying that Nok Air is working towards forming a joint venture with a foreign airline, narrowing the field down to Singapore Airlines (SQ, Singapore Changi) or a Chinese carrier. 

"Nok Air wants potential business partners," said the source, adding that a strategic partner would be expected to take a stake of around 25%.

[Sydebolle]

There are almost more carriers than people in this country - it's like with everything else. 

I flew on September 9th, 2017 Bangkok - Khon Kaen:
Thai Airway International was on offer for THB 1'930
Thai Smile (WE048) finally flew me for THB 990 on the very same aircraft as Thai Airways International sold tickets for THB 1'930 with the very same service, baggage allowance and mileage credit on ROP. 
 

The flight had a load factor of 35%, max 40% percent; instead of just some drinks from a one liter bottle into plastic cups we were handed out little paper bags with textile holding bands, containing a separate cardboard box with a tiny bottle of Chang water and a (in plastic wrapper) terrible sandwich. The costs of this must have been manyfold compared to just a softdrink refreshment on this 50 minutes flight. 

 

To move 80 kilogrammes from Bangkok to Khon Kaen (that is the weight of a passenger plus baggage) would cost with Kerry Express more than double the collected airfare of THB 990 - go figure!