“Nok Air” Chaluai Rehabilitation Court raised no objection investigation – ordered to expedite the submission of documents to the petition in 5 days to listen to the order on November 4, “Wuttipoom” CEO confirms major creditors fully supported Companies accelerate revenues and expenses. Set a business rehabilitation target to be completed in 5 years, looking for ways to increase capital Ready to move on to meet ABC, hope the airlines stop reducing tickets to compete for passengers
Mr. Wuttiphum Chulangkul, Chief Executive Officer of Nok Airlines Public Company Limited or NOK said on October 27 the past The Central Bankruptcy Court dismissed the hearing of Nok Air’s petition for rehabilitation. Because no creditors filed objections The court ordered to expedite the supporting documents of the request to the court within 5 days and an appointment to hear the court’s order on 4 November 2020 at 9:00
However, if authorized for business reorganization Nok Air plans to complete its business rehabilitation plan within 3 months or by early February. And aims to complete the rehabilitation within a period of 5 years
With confidence that the company will be able to pass the process of submitting a business rehabilitation petition This is because around 10 aircraft leasing creditors holding 58% of the debt share have agreed and issued a letter supporting Nok Air’s rehabilitation.
The second creditors Mrs. Hatairat Jurangkul, the major shareholder and loan owner of 2,700 million baht, also supported the business rehabilitation. While the next small creditors did not appear any petitioner to object to the rehabilitation.
Part of the business reorganization details Mr. Wuttipoom stated that There are two main factors affecting Nok Air’s business operations that lead to a request for business reorganization.
The first is the intense price competition for many years, the second is the COVID-19 situation. Causing Nok Air to be unable to provide international routes And there are fewer passengers in the country
However, in the meantime until the rehabilitation plan. Nok Air will continue to generate additional income and accelerate cost reduction through generating additional income other than ticket prices, such as providing additional services for the sale of hotels, accommodation and airfare. Provides additional services, sales of rental cars, paired with air tickets, etc.
As for the acceleration of cost reduction Nok Air has accelerated many parts. Whether it is negotiating interest rate cuts, extending the repayment period and paying interest. The negotiation for the reduction of aircraft rental has been done. Some discounts are up to 44% on the rental of the device, and many are still in the works. Whether it is finding new partners and raising capital that are currently exploring possibilities. Waiting for a court order whether to allow Nok Air to make a rehabilitation plan or not
In addition, Nok Air is preparing to discuss with the Trade Competition Commission (KKU) to find ways to reduce the anti-dumping of the airline’s airfare on November 29 in hopes of reducing the price competition. Give airlines the opportunity to make more profit After a universal injury from COVID-19
“Nok Air now provides services as usual as before. Currently in full use of 22 aircraft in its fleet with no one resting To provide more than 604 passenger transfers per week, with passenger load rates growing from 30% in the first period to 70% today, despite a decline from the normal period that typically has an average load rate of over 85%.
With believing that the loading rate will keep increasing in this high season With a slight price increase of almost 10% due to the lower competition in price In addition, Nok Air is in the process of preparing and requesting permission to accept two more aircraft into the fleet by early 2021 and open to foreign airlines to lease 3 to 27 aircraft. “ Mr. Wuttipoom said.