PB Air closed down operations after accumulating losses of approximately USD60.3 million and failing to attract foreign investors with its revised business plan (Bangkok Post, 04-Dec-2009). The carrier had suspended services in Nov-2009 after returning its remaining two ATR 72-500s to Bangkok Airways after their leases expired in Oct-2009. PB Air had planned to take delivery of two Saab 340s from AeroCentury at the end of Dec-2009. Nok Air has now been requested to launch services previously operated by PB Air from Bangkok Don Mueang to Sakhon Nakhon, Nakhon Phanom and Buri Ram.
PB Air closes operations
You may also be interested in the following articles...
Thailand's NokScoot plans ambitious expansion with seven more 777s and complete focus on China
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.
Thailand’s Nok Air to restore domestic capacity but focus expansion on China and India
Thailand’s Nok Air is planning to focus on international expansion over the next two years with a focus on China and India. The primarily domestic LCC needs a bigger international operation to diversify its business, improve profitability and unlock a new phase of growth.
Nok has struggled over the last two and a half years to contend with intensifying domestic competition, leading to losses in 2014 and 2015. A pilot shortage led to even steeper losses in 1H2016 as Nok was forced to temporarily reduce domestic capacity and aircraft utilisation levels.
The airline is confident it can return to profitability in 4Q2016 as domestic capacity is restored and is bullish on its medium term outlook as it grows its international operation. China expansion will be the priority in 2017 followed by India in 2018, which will be served with Nok’s new fleet of 737 MAX 8 aircraft and supported by a potential new Indian partner.