Nok Air and NokScoot 2016 outlook: focusing expansion on China as profitability improves

Thailand's Nok Air and its long haul sister NokScoot are planning to focus expansion on China for the remainder of 2016. Nok plans to commence scheduled services to China in Jun-2016, while NokScoot plans to expand its network beyond its current four scheduled Chinese destinations in 2H2016.

China will be allocated a majority of Nok's additional capacity as the airline grows its 737-800 fleet from 21 to 23 aircraft in 2H2016. As it takes two additional Bombardier Dash 8 turboprops Nok also expects to free up 737-800s for international routes; these are aircraft that are currently used for domestic services. The airline also expects to generate additional capacity by improving aircraft utilisation as it resolves a pilot shortage issue.

Nok has traditionally focused almost entirely on the domestic market - which accounted for 91% of its total passenger traffic in 2015 - but is trying to diversify by expanding internationally, with an initial focus on China. The 2015 launch of NokScoot also enables the group to expand internationally. NokScoot currently operates three 777-200s and is now aiming to add two more aircraft in 2016.