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NokScoot plans 2H2014 launch with two 777s, targeting Thailand-Japan and other North Asian markets

Analysis

Thai Airways' affiliate Nok Air and Singapore Airlines' (SIA) subsidiary Scoot should be able to build on their respective strengths as they enter Thailand's medium/long-haul low-cost sector with the launch of NokScoot. The two companies are well positioned to establish a strong competitor to Thai AirAsia X.

Thailand will become the first country to have two carriers following the emerging long-haul LCC model, providing an intriguing dynamic and ushering in a potentially unprecedented level of competition. While NokScoot and Thai AirAsia X will likely have similar networks, some product differences could emerge as Nok Air follows more of a hybrid model compared to AirAsia, AirAsia X and Scoot.

NokScoot plans to operate an initial fleet of two 777-200s sourced from SIA. The new carrier at least initially will focus on destinations in North Asia, particularly Japan. Thai AirAsia X is expected to serve some of the same routes but with more efficient A330-300s.

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