NOK AIR PLC expects a 10 per cent rise in income next year as a result of cost reduction , improvement in ticket pricing management and product development, said chief executive officer Piya Yodmani, adding that the low growth estimate is partly due to the fact that the low-cost carrier is keeping its fleet of aircraft at 30.
In 2018, Nok Air's passenger volumn is estimated to rise to 8.4 million while its cabin factor will likely stay at 86 per cent. The airline's yield is expected to increase by at least 5 per cent.
Its yield averaged at Bt2.13 per passenger per kilometre for the third quarter of this year and Bt1.90 per passenger per kilometre for the first nine months.
Income from ticket sales this year is estimated at Bt13 billion with passengers reaching a total of nearly eight million. Nok Air's 2017 cabin factor is projected at 84 per cent while ticket price averaged Bt1,200-Bt1,300 per seat this year.
Piya said Nok Air planned to add long-route flights at night to raise its average aircraft utilisation to 12 hours per day from 10.5 hours per day as a means to lower costs.
Nok Air currently operates 19 routes to 14 Chinese cities and is negotiating for traffic rights on five more routes in four cities in China, pending finalisation in the first quarter of next year.
It is also studying new routes in three cities of India and Mandalay of Myanmar.
The airline is also experimenting fast ticketing management for higher income, he said.
Nok Scoot Airline, the airline’s subsidiary, has handed over some of its passengers to Nok Air on some routes including Donmueang-Phuket.
Next year, Nok Scoot Airline will begin service to South Korea and Japan and Nok Air is expected to hand over more of its passengers to Nok Scoot Airline.
Nok Air is also improving its products and communication with customers. ITwill launch one to two lifestyle products including diving and Dhamma in the year 2018.