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Thailand's NokScoot ready to enter Japan, China & Korea once frustrating launch delays are overcome

Analysis

Thailand's NokScoot is aiming to launch scheduled services in May-2015 with an initial fleet of three 415-seat 777-200s. The long-haul low-cost joint venture between Thai Airways affiliate Nok Air and Singapore Airlines (SIA) subsidiary Scoot is planning to serve China, Korea, Japan and potentially Singapore in its initial phase.

NokScoot is eager to enter the fast-expanding but increasingly competitive Thailand-North Asia market. But the start-up is unlikely to pursue significant growth until it is able transition to new-generation aircraft. The 777s are an interim solution that is unlikely to be profitable but enables NokScoot to quickly establish a presence on several key routes.

NokScoot was initially planning to launch scheduled services in late 2014 starting with flights to Tokyo Narita. But it has encountered repeated delays, mainly on the Japanese end. NokScoot is now simultaneously seeking approvals from several authorities, giving it the flexibility to launch with one of several potential routes.

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