Foreigners Can't Pronounce New Budget Airline Name

[george]

Bracing for a dogfight as low cost airlines take to the skies

THAI's Nok Air and AirAsia begin big marketing pushes

BANGKOK: The first public encounter in Singapore last week between Asia's youngest aviation industry chief executive and one of the region's better-known personalities was not entirely a happy one, with the two men trading barbs about the names and safety levels of low cost airlines (LCAs).

A day after launching Thailand's newest LCA, Nok Air, at a press conference in Bangkok, CEO Patee Sarasin flew to Singapore to attend a symposium on LCAs where he spoke at a panel discussion after AirAsia Chief Executive Tony Fernandes.

A sharp and witty public speaker, with a talent for showmanship, Mr Fernandes took his usual pot-shots at other emerging regional low-cost airlines like Lion Air and Tiger Airways.

His reference to airlines ``with names of animals and birds'' as against a ``simple straightforward name'' like his AirAsia did not go down well with Mr Patee who hit back with an attack on airlines ``that have to fly back within 15 minutes of taking off'' on their inaugural flight.

This was a snipe at AirAsia's Feb 2 inaugural from Bangkok to Chiang Mai which returned to the airport and made an emergency landing

While Mr Patee sought to explain the name to his foreign audience _ its meaning (bird) and popularity as a Thai nickname (six million Thais have it, he claimed) _ it is clearly going to take foreigners some time to get used to it. They kept pronouncing it as ``knock''.

In a subsequent interview, Mr Patee sent a clear message to Mr Fernandes that he could expect a tough dogfight in the skies over Thailand and the region. Both men consider themselves marketing whiz kids, meaning it could be a battle of egos as much as market share.

Mr Patee said he was not worried by the perceived disadvantage of late market entry stemming from the planned start up in June. Rather, he sees it as an advantage because it 'will give us time to analyse AirAsia's strengths and weaknesses and come up with responses based on our strengths.''

He indicated that this would extend both to using the technical and maintenance facilities of THAI as well as the marketing and distribution power of the global Star alliance of which THAI is a member.

He did not rule out the possibility of Nok Air customers being linked ``in some way'' into THAI's Royal Orchid Plus loyalty programme, which no low-cost airline presently does.

Mr Patee said Nok Air would also be glad to hire some of THAI's younger staff, ``those with the energy to produce results.'' Stressing that he would be drawing upon his marketing and advertising background to give Nok Air a strong branding image, Mr Patee said the airline's links with Charoen Pokphand's 7-Eleven chain and its 2,500 outlets nationwide would play a key role in the distribution strategy.

Referring to AirAsia's strategy of selling most of its tickets over the Internet, and Mr Fernandes' claim that 50 % of Thai AirAsia's tickets were being sold thus, Mr Patee said, ``No one in Udon Thani knows much about the Internet, but they all know 7-Eleven.''

He declined to be specific about how 7-Eleven would be involved, but revealed that he planned to talk to Airports of Thailand about finding ways to cut the airline's operating costs at the key airports of Chiang Mai, Phuket, Hat Yai and Chiang Rai.

He also did not rule out the possibility of Nok Air taking over some of THAI's routes with its two-aircraft fleet, both to be leased from THAI.

Asked what advantages could accrue to Nok Air from equity ownership by the Crown Property Bureau, Mr Patee said, ``They came to us. They see it as a good investment.''

Asked if the presence of a CPB member on the airline's board could help open doors for the airline, Mr Patee replied, ``It could.'' However, he denied that the airline would seek to gain any special favours.

The battle between Nok Air and AirAsia will be closely watched by the regional aviation industry because it will set an example of how the established airlines can compete against the low-cost start-ups.

While both airlines insist that they want to grow the market and wish to avoid damaging price wars, and that the large Asia-Pacific population base means enough business for everyone, the reality is that they are competing for market share on turf with a good deal of overlap _ such as Thai AirAsia's start of low-fare flights from Bangkok to Singapore as of today.

The Asia-Pacific's established airlines know that despite their size, no airline is immune from collapse.

The huge success that LCAs have enjoyed in Europe, North America and Australia is a warning to the established airlines that they cannot pooh-pooh the LCAs.

Indeed, aviation consultants working with the LCAs are having a ball digging up dismissive quotes made earlier by senior industry figures. Now, the airlines are being told that the LCAs are here to stay and that over time, some of them will collapse. The established airlines want to make sure that they are not among those.

- Imtiaz Muqbil is executive editor of Travel Impact Newswire, an e-mailed feature and analysis service focusing on the Asia-Pacific travel industry.

--Bangkok Post 2004-02-16

[Axel]

Where did I read the pronounciation: "no care"?

[samran]

Where did I read the pronounciation: "no care"? 

actually, this will be interesting.

We will get to see how much gall (sp?) dear leader has when he tries to start tilting the playing field his way. We will also get to see if AirAsia works, as he hasn't got a monopoly in this sector. Dear Leaders venture may provide another chink in his armour, one way or the other.

[meadish_sweetball]

Emergency foreign parachuters from their aircraft will surely be affectionately known as "farang kee nok"... depending on how cheap their tickets are, maybe even the regular passengers.

[Guest IT Manager]

One can certainly pray you are right Samran... with deepest respect naturally.

[PlanetMan]

Asked if the presence of a CPB member on the airline's board could help open doors for the airline, Mr Patee replied, ``It could.'' However, he denied that the airline would seek to gain any special favours.--Bangkok Post 2004-02-16

The airline [won't] seek to gain special favors? What planet is he from? Maybe he thought everyone in the audience was a maroon? Always seemed to me to be a pretty standard business practice around the world.

The huge success that LCAs have enjoyed in Europe, North America and Australia is a warning to the established airlines that they cannot pooh-pooh the LCAs.

Note that markets in Europe and North America benefit from relatively little government interference, and strongly enforced competition, transparency and safety regulations. In Asia it will be a wholy different kettle of fish. It will probably make pooh-pooh smell good by comparison

Where did I read the pronounciation: "no care"?

Stop, stop, you're killing me. Truth continues to be stranger than fiction. I maintain that you couldn't make this ### up if you tried.

Cheers

[george]

Follow-up:

Nok Air set to fly on June 1

BANGKOK: -- Nok Air, the budget airline start-up of Thai Airways International, has decided to commence its flights in June to steer clear of the glare of publicity should a mishap occur during the hectic Songkran holidays.

“We decided to start operations on June 1 to avoid problems on our maiden voyage. We don’t want peak-season travel glitches to hurt our image,” Patee Sarasin, CEO of Nok Air operator Sky Asia Co, said yesterday.

Rival low-cost carrier Thai AirAsia earlier suffered a public relations embarrassment when its inaugural flight had to be aborted due to a technical flaw.

If any operating system flaws appear they would iron themselves out soon after the service takes off, he said.

Nok Air will fly to Chiang Mai, Khon Kaen, Udon Thani, Phitsanulok, Phuket and Hat Yai with two Boeing 737-400 aircraft and cabin crews from THAI.

“I can’t yet say what destinations we will add to our schedule, but we will go anywhere with a demand for flights,” he said.

After a full year of operations, Nok Air plans to expand its network to Singapore, China, India and Malaysia.

Nok Air will raise its registered capital from Bt200 million now to Bt500 million by the end of this week by tapping its shareholders – THAI with 39 per cent; the Crown Property Bureau, Krung Thai Bank and Dhipaya Insurance with 10 per cent each; and private investors.

CP Seven-Eleven Plc, a listed unit of Charoen Pokphand Group, would take a 10-per-cent stake in the airline after it receives approval from its board and shareholders, he said.

Nok Air passengers could then book their flight at any of the 2,500 7-Eleven convenience stores nationwide.

“We will be everywhere customers can reach. If they want to buy tickets on the Internet, we will be there. If they want do it at 7-Eleven stores, we will there too. It’s no surprise we’re only using 15 per cent of the entire investment on distribution,” he said.

Ticket fares will be published in early April and passengers can reserve their seats.

Since Nok Air was introduced on February 10, everyone has heard about it and most people are talking about it, he said.

“I’m not worried whether we get positive or negative feedback in marketing terms. We were successful in our attempts to reach the public.”

--The Nation 2004-02-18

[huski]

Nok Air passengers could then book their flight at any of the 2,500 7-Eleven convenience stores nationwide.

hello, can i have some of those mach 3 razors, a box of featherlite condoms and a round trip ticket to chiang mai on nookie air.

[dr_Pat_Pong]

KEE NOK AIR a genuine imitation fake Thai nok off

[Pink Mist]

Emergency foreign parachuters from their aircraft will surely be affectionately known as "farang kee nok"... depending on how cheap their tickets are, maybe even the regular passengers.

could compete with jumpers from high rise in Pattaya'

"Farang leaps to death from Nookie Aircract, parachute fails to open"

[ovenman]

While Mr Patee sought to explain the name to his foreign audience _ its meaning (bird) and popularity as a Thai nickname (six million Thais have it, he claimed) _ it is clearly going to take foreigners some time to get used to it. They kept pronouncing it as ``knock''.

If pronouncing Nok is tying foreigners tongues, wait 'til they have to start saying Suvarnabhumi Airport.

[dr_Pat_Pong]

Or mai mee ngern

[ovenman]

Follow-up:

Nok Air set to fly on June 1

BANGKOK: -- Nok Air, the budget airline start-up of Thai Airways International, has decided to commence its flights in June to steer clear of the glare of publicity should a mishap occur during the hectic Songkran holidays.

“We decided to start operations on June 1 to avoid problems on our maiden voyage. We don’t want peak-season travel glitches to hurt our image,” Patee Sarasin, CEO of Nok Air operator Sky Asia Co, said yesterday.

My calendar claims that June 1 is next Tuesday so I simply have to ask, where will Nok Air be making its inaugural flight to on that day?