Nok prepares to launch international operation in 2013 as Thai Airways drops plans for ultra LCC

Thai Airways domestic LCC subsidiary Nok Air is preparing to expand into the regional international market as it rapidly grows its new Boeing 737-800 fleet. The new Nok international operation will launch in early 2013 and fill a critical void in the current Thai Airways Group portfolio, which currently lacks a product for the fast-growing budget end of Thailand's international market.

Thai Airways originally planned to launch a new ultra low-cost carrier for the regional international market, potentially in partnership with Nok, but the group's board recently decided against proceeding with this project and establishing a fourth brand. The Thai Airways Group will now stick with its three existing brands - Thai, Thai Smile and Nok. Thai Smile and Nok are both considered hybrid carriers but Nok's cost structure is significantly lower than Thai Smile and should be sufficient as the group aims to compete more effectively against Thai AirAsia and other LCCs.