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Thailand’s Nok Air to stick with domestic focus following ownership restructure and fleet renewal

Analysis

Thai low-cost carrier Nok Air is entering a new phase in its development as it plans major capacity growth and pursues a closer relationship with part-owner Thai Airways. But at least for now Nok will remain focused entirely on the domestic market despite the potential opportunity to fill the void in Thai's group strategy left by previously planned international LCC Thai Tiger.

Nok is one of the oldest LCCs in Asia, having just celebrated its seventh birthday, but is perhaps the least known as its brand, while very strong locally, has virtually no international exposure. The carrier's profitability and success at carving out a niche by focusing on the local Thai market, and particularly the country's younger generation, has gone largely noticed in the global industry. Nok has quietly grown to become a major player in Thailand, accounting for a 20% share of Thailand's fast-growing domestic market according to capacity data from Innovata.

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