Nature of Business
Nok Air operates a budget airline under the “Nok Air” brand where it provides domestic and international point-to-point air transport services. As of December 31, 2017, the Company has a fleet of 30 leased aircraft, including 20 Boeing 737-800, 8 Bombardier Q400s and 2 ATR-72s. The Company receives investment promotional privileges under the Investment Promotion Act B.E. 2520 (and Amendment) from The Board of Investment of Thailand (BOI) in the large mass and cargo transport business. Details of the investment incentives are as follows:
- Corporate income tax exemption on net profit generated from the consolidated BOI promoted businesses of not exceeding 100% of the investment capital, excluding land and revolving capital. The incentive is given for 8 years starting from the date the business begins to generate income.
- The right not to include dividend received from BOI promoted projects with corporate income tax exemption into taxable income throughout the corporate income tax exemption period.
- Exemption of import duty on imported aircraft
- The right to allow foreign technicians or experts and their spouse and dependants to travel to Thailand and work in the specified position within the timeframe allowed by the Board of Directors.
In providing outstanding services, Nok Air is recognized for it services like free seat assignment, complimentary in-flight drinks and WIFI onboard service (in an aircraft with supporting equipment) and free minimum check-in baggage allowance. (Economy Class)
Nok Air Route
Nok Air provides extensive flight services covering every region across Thailand. At present, Nok Air has the most domestic route coverage in Thailand. As of December 31, 2017, Nok Air flied 27 routes of which 24 routes are domestic flights, 3 international routes with a total of 603 flights per week. To extend its wing to overseas territories, Nok Air signed the Interline Cooperation Agreement with Singapore’s Scoot Airlines which allowed Nok Air to sell tickets from domestic destination such as Chiang Mai, Chiang Rai, Phuket, Udon Thani, Ubon Ratchathani, Nakhon Si Thammarat in Trang, and Hat Yai to Singapore. The agreement enables passengers to buy one single ticket that covers destinations operated by these two airlines.
Nok Air offers flights from its main operation base at Don Mueang International Airport with a focus to service flights on high demand routes as primary routes(1) as well as flights on lower demand but potentially grown routes as secondary routes(1) and feeder routes(1). This is in line with Nok Air’s competitive strategies to provide the most comprehensive coverage in Thailand. As of December 31, 2017, Nok Air operates 603 return flights per week.
For international routes, Nok Air provides service to two route in Myanmar which is Don Mueang-Yangon and Mae Sot-Yangon. In addition to Nok Air commenced Charter flight to China. As of 31 December 2017, Nok Air operates 43 round trip flights in this region.
Nok Air also emphasizes on the services to and from the northern, northeast and southern regions. The locations of origin and destination airports in the north and northeast regions are not affected by seasonal monsoon like those in the south. We can therefore regularly operate in those regions all year round. Geographically, the north and northeast regions are closed to neighboring countries in the Indochina region, namely Myanmar, Laos and Cambodia, which is projected to see significantly increasing demand for air transport in the future. As of December 31, 2017, Nok Air operated 434 flights per week to and from airports of origin and destinations in the north and northeast and 334 flights per week, from the south 210 flights per week and central 16 flights per week representing 54%, 34% and 3 of the total flights per week respectively. The remaining 7% of our flights are operated to and from overseas origins and destinations. Nok Air has provided charter flight for group passenger and unschedule flight.
|(1)||Announcement of the Ministry of Transport: Criteria for Domestic Route Service as of September 27, 2006 as follows:|
|•||Primary route is a route with total passengers over 300,000 a year which Department of Civil Aviation allows all Thai airlines to operate commercial flights along these routes without any restriction of the number of airlines.|
|•||Secondary route is a route with total passengers between 50,000 and 300,000 a year and Department of Civil Aviation allows only three airlines to operate commercial flights in these routes.|
|•||Feeder route is a route with total passengers less than 50,000 a year and Department of Civil Aviation allows only two airlines to operate commercial flights in these routes.|