Thai Airways Board of Directors stated Krung Thai Bank has agreed to sell its 5 million shares in Nok Air at TJB30 (USD 0.98 cents)/share, lowering the previous proposal from THB40/share (The Nation/Bangkok Post, 14-Jan-2011). The Board acknowledged the new proposal and allowed the management to proceed with the negotiation this week. Earlier, Thai Airways had proposed a sale price of THB13/share while KTB has proposed to sell the 10% stake for THB44/share. Thai Airways is seeking a larger stake in Nok Air to strengthen its controlling power in the LCC. The purchase would lift Thai's stake in Nok Air from 39% to 49% at a cost of THB150 million (USD4.9 million).
Krung Thai Bank to sell 4 million shares in Nok Air for THB30/share
You may also be interested in the following articles...
Thai Airways SWOT: opportunities for growth, but challenges as competition further intensifies
Thai Airways is approaching a critical juncture as it completes a restructuring and seeks to resume growth. Its home market offers opportunities and an envious growth rate, but intensifying competition creates challenges.
Thai Airways is sandwiched between rapidly expanding low cost airlines and ambitious Gulf airlines. Its multi-brand strategy has so far proven to be a less than sufficient response.
In this SWOT analysis CAPA examines the Thai Airways Group’s strengths, weaknesses, opportunities and challenges.
Southeast Asia-US market Part 3: new nonstops need to overcome stiff one-stop FSC & LCC competition
Southeast Asian airlines are seeking to capture a larger share of the Southeast Asia-US market over the next few years as they launch new flights to the US. Three of the region’s flag carriers and at least one long haul LCC are planning to launch flights to the US, intensifying competition in an already fiercely competitive market.
Southeast Asian airlines currently account for less than a 20% share of the total Southeast Asia-US market. Philippine Airlines and Singapore Airlines are the only significant players in this market and are aiming to increase their share as they add new nonstop routes. Garuda Indonesia, Thai Airways and Vietnam Airlines are also keen to become significant players as they launch flights to the US, replacing their now limited offline products.
However, market share gains will likely come at the expense of yields and profitability as competition with North Asian airlines – and to some extent US and Gulf carriers – intensifies. North Asian airlines now account for more than 50% of bookings in the Southeast Asia-US market and have increased their reliance on Southeast Asian connections as they have added US capacity, resulting in very competitive fares.