Nok Air’s operation improves after fares increase
Nok Air’s operation improves after fares increase
source: Bkk Post Aug 15 2008
Nok Air has raised its fares because of the fluctuating fuel price, which is half of the airline’s operating cost, according to Nok Air’s CEO Patee Sarasin.
He said Nok Air has come up with a restructuring programme after experiencing major financial loss. The airline has lowered its number of flights from 70 to 20 flights per day, reduced the compensations of some of its staff, and dismissed a group of contract workers, the CEO said.
However, Mr Patee said the current situation is deemed acceptable and believed the low cost carriers in Thailand can survive only if they manage their operations carefully.
He said the low cost airlines would face greater problems and may go out of business, should the crude oil price move up to 170 US dollars per barrel. The current price is 116 US dollars a barrel.
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