Thailand’s Nok Air poised for further expansion with bright outlook following successful IPO

Nok Air is well placed to build on its strong position in the Thailand domestic market and fend off potential new competitors following an initial public offering which raised THB4.875 billion (USD156 million). The Thai Airways affiliate will use the proceeds to expand its fleet to at least 30 aircraft by the end of 2015 with a focus on growing existing domestic routes.

Nok already offers Thailand's largest domestic network with 22 destinations and 24 routes. About half of its routes are served with turboprops, giving the hybrid carrier a leading position in Thailand's regional market. Overall Nok is the third largest domestic carrier in Thailand behind Thai Airways and Thai AirAsia, but has been rapidly closing the gap with Thailand's largest LCC.

Nok faces bigger challenges in establishing an international presence but at least for now will primarily focus on the domestic market, where there continues to be growth opportunities but also intensifying competition. Nok's expansion into the international market will be gradual and modest with a focus on niche routes.