Nok Air will continue its domestic focus as competition within Thailand intensifies

Thai low-cost carrier Nok Air plans to continue focusing primarily on the domestic market as it expands its narrowbody and turboprop fleets following the first orders in the company's 10-year history. Nok currently operates a fleet of 17 aircraft and has recently committed to purchasing over the next five years at least 19 aircraft, including eight 737-800s, seven 737 MAX 8s and four Bombardier Dash 8 Q400s.

Nok captured 27% of Thailand's domestic market in 2013, up from 22% in 2012. Nok and its part-owner, Thai Airways, are keen for the LCC to maintain its strong domestic position as competition intensifies.

But internationally Nok is taking a cautious approach. The airline currently only serves one international route, Bangkok-Yangon, and plans to launch only one or two more international routes in 2014, Bangkok-Ho Chi Minh and potentially Bangkok-Hanoi. This leaves the Thai Airways Group without a serious participant in the international short haul segment, something that will need to be addressed.