NOKSCOOT Airlines Co Ltd, a joint venture between Thailand-based Nok Airlines Plc and Singapore budget airline Scoot Airline, is targeting total revenue of Bt10 billion in 2018 following the removal of the red flag by International Civil aviation Organisation (ICAO) over Thai aviation safety issues, company chief executive officer Yodchai Sudhidhanakul said yesterday.
The company also expects to return a profit next year by cashing in on new routes and by management of costs, said Yodchai, who took over as CEO on November 1.
The company expects total revenue of Bt6 billion this year and a net loss not exceeding Bt100 million. The result will be an improvement over the previous year when net loss totalled Bt600 million on revenue of Bt3.9 billion, he said.
He added that the company plans to open two new routes – Bangkok-Tokyo, and Bangkok-Seoul – in the first half of next year.
This will boost the number of its passenger from 1 million this year to 2 million in 2018.
Currently, NokScoot provides customers with scheduled services from Bangkok ’s Don Mueang International Airport to six destinations, five of them in China – Nanjing, Qingdao, Tianjin, Shenyang, and Dalian – as well as Taipei. On December 9, the company plans to open another route to China – Bangkok-Xi’an.
Due to increase in the number of routes, the company will increase its aircraft numbers from three to four this year and lease another aircraft next year.
The airline expects its load factor to exceed 87 per cent in 2018. Yodchai added that the aviation business next year will continue to see growth in Asia and globally but there is intense competition between full service and budget airlines, having an impact on pricing.
“There is intense price war in this business, especially on routes with high passenger demand, hence more airlines are launching services on other routes to cater to those customers,” he said.
In keeping with market trends, the company has tried to balance its cost and revenue, and aims to show a net profit next year, he said.
“Our goal is to achieve profit 2018,” he said. Established as a joint venture in July 2014, the airline recorded a net loss of Bt1.2 billion in its first year of operations in 2015. The airline managed to reduce losses to Bt600 million in 2016 and an estimated net loss of not more than Bt100 million this year.