Nok Air of Thailand to buy 15 Boeing 737s

[SINGAPORE] Thai low-cost carrier Nok Air will purchase 15 new Boeing 737s, worth US$1.45 billion in its first direct order with Boeing. Eight Boeing 737-800s and seven 737 MAX 8s will be part of the deal, Boeing said yesterday.

Patee Sarasin, CEO of Nok Air, said the airline, which celebrates its 10th anniversary this year, has been making good profit.

"We have been very happy to be partners with Boeing for the past 10 years and are going to continue to do that," he said.

The airline, 39.2 per cent owned by Thai Airways International, chose the planes for their fuel efficiency and potential to reduce maintenance time.

"The 737 is the backbone of our fleet and will continue to be in the future," Mr Sarasin said. "These airplanes position us for growth and ensure that we'll continue to operate the most reliable and fuel-efficient aircraft."

Around eight of the 15 new planes will be used to replace older aircraft, with the first to be delivered in July this year, Nok Air said.

Mr Sarasin said the company was taking a gradual and cautious approach to expansion because of uncertainties in the Thai political landscape.

Noting that the airline was No 1 in terms of market share in Thailand, he said it planned to expand to regional countries such as Vietnam and Myanmar. "We are very cautious in the way we expand and we continue to do that."

Said Dinesh Keskar, senior vice-president of Asia Pacific and India sales, Boeing Commercial Airplanes: "The 737 MAX is an excellent complement to Nok Air's fleet and its low-cost business model. The airplane's efficiency, reliability and passenger amenities will enable the airline to continue to provide its customers high-quality service at a low cost."

Nok Air currently leases 14 Boeing 737-800s from various lessors such as GECAS, the commercial aircraft leasing and financing arm of GE.

Last December, Nok Air and Singapore budget carrier Scoot unveiled plans to jointly set up a medium to long-haul budget carrier based in Bangkok.