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Thailand's NokScoot plans ambitious expansion with seven more 777s and complete focus on China

Analysis

Thailand's medium/long-haul LCC NokScoot is planning ambitious expansion, with the acquisition of seven additional 777-200s. A fleet of 10 aircraft, compared with the three currently, will result in improved scale and efficiencies, potentially enabling NokScoot to become profitable.

The joint venture start-up between Thailand's Nok Air and Singapore's Scoot is bullish on opportunities in the fast-growing Thailand-China market. NokScoot already serves five destinations in mainland China, despite only having three aircraft.

A sixth Chinese destination is being added in Sep-2016 when Taipei - NokScoot's only destination outside mainland China - is dropped. NokScoot needs to expand its fleet to pursue further growth in China and also still has long-term aspirations to serve Japan and South Korea.

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