Low Cost Airline

Topics: Airline, Low-cost carrier, Thai Airways International Pages: 7 (1760 words) Published: December 28, 2010
Company profile
Nok Air is a low cost airline in Thailand. Destinations of the flight are served within domestic with affordable price. Thai Airways International Public Company Limited holds 39% joint venture with the company. Thai Commercial Securities Co., Ltd. (Thai commercial banks. Co., Ltd. (Thailand), CPB Equity Company Limited (Crown Property Bureau) and other shareholders include Krung Thai Bank (Thailand) holds 10%, Dhipaya Insurance Company Limited (Thailand) holds 10%, Pension Fund holds 10%, King Power holds 5% and Mr. Patee Sarasin holds 5%. The trademark ‘Nok Air' was first established on February 10 th , 2004 under the company Sky Asia Co., Ltd. The name 'Nok Air' is simply and easily to recognize by people. Meaning 'bird' in Thai language it symbolizes friendship and freedom to travel, or 'fly everywhere'. Yellow was chosen as the airline colour as it also symbolizes warmth and friendship in our Thai culture. On Jan 16 th , 2006, the company name was changed to 'Nok Airlines Co., Ltd'.

Mission of the airline
* To be the number one low-fare, high-value budget airline in both Thailand and Asia. And to achieve this by being perceived by all who travel in Southeast Asia as affordable, yet offering with Thai hospitality, the best of all that is Thai. | | * To provide travelers with a point-to-point regional air service that is safe, reliable, convenient and true value-for-money. | | * Through cost-effective operations, to offer highest possible returns to shareholders. | | * To develop and motivate our people to have initiative and be highly productive.| |

SWOT analysis
* High number of distribution channels
* Strong backup
* Best Human Resource
* Best service quality
* Brand awareness
* Effectiveness in space management on flight
* High level of employee quality
* Price
* Low experience of management team
* Bad cash flow problem
* Low level of advertising
* High number of demand
* Convenience and faster
* Joint promotion
* Higher growth rate
* Growth rate increasing by Hong Kong and Ma Gout traveler with high number of booking rate * Government support open sky policy

* High number of competitor in the Market
* Singapore government support low cost airline in the country * Price war with promotion war
* Boring about long time booking (behavior change)
* Payment Policy
* Confirmation Process
* Fuel cost increasing
* 20% increase for airline tax

Business Competitors
The four selected competitors of Nok Air are;
* Thai Air Asia
* One-Two-Go Airline
* Tiger Air
* Others
Due to the destinations of those airlines mentioned above. They have similar destination to Nok Air and also same range of price. * Thai Air Asia is a joint venture between Air Asia (Malaysia) and Shin Corp (Thailand). It is now has a little bit advantage in market share for low cost airline business. Due to the low price and serve more destinations than Nok Air, Air Asia also spread their route to international with low price. * One-To-Go is the first low cost airline in Thailand, held by Orient Thai Airline, was the first airline operating as an LCA between Bangkok and Chiang Mai. * Thai Tiger Air is a joint venture LCC to be established with partners that include Tiger Airways, 49% owned by THAI arch rival Singapore Airlines (SIA). Thai Tiger is planned for takeoff in the first quarter of 2011 with an initial fleet of three A320s, with plans to have a fleet of up to 25 aircraft. * Others are the new born airlines, both local airlines and international. The airlines that have fewer routes but some route are the same as Nok Air and also the price is low. Due to the new law of the government support open the sky...
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