NokScoot and Thai AirAsia X set back by new ICAO-driven restrictions from Japan and South Korea

Thailand's new crop of long-haul low-cost carriers have been set back by new restrictions imposed by Japan and South Korea following an ICAO determination that Thailand's aviation authority is not in compliance with international safety standards. NokScoot and Thai AirAsia X (TAAX) will likely still be able to pursue expansion in China, which has raised new restrictions on Thai charter carriers, but Japan and Korea are critical markets for both start-ups.

NokScoot has been particularly impacted as it had not yet launched scheduled services - due to a series of earlier unrelated regulatory delays - when ICAO informed Korea and Japan at the end Mar-2015 of its findings against the Thai DCA. As a result NokScoot had to shelve plans for launching scheduled services to Japan and Korea as well as cancel or hand to sister carrier Scoot charters to Japan.

TAAX is in slightly better position as it was already serving two destinations in Japan and one in South Korea when both countries began imposing the new restrictions. But TAAX will have to drop a new route to a third Japanese destination and delay plans for adding capacity in both markets.