Nok Air and Thai AirAsia (TAA) both launched operations in 2004, providing new LCC options in Thailand’s domestic market. Nok is an affiliate of Thai Airways, which currently owns about a 40% stake, while TAA is an affiliate of Malaysia-listed AirAsia Berhad, which currently has a 45% stake. TAA’s parent and majority shareholder Asia Aviation had an initial public offering on the Stock Exchange of Thailand in 2012 while Nok completed an IPO in Thailand in 2013.
Nok is predominantly a domestic carrier and currently operates only one international route, from Bangkok to Yangon. TAA is roughly the same size of Nok domestically but also has a large international operation that accounted for 35% of its total passengers in 1Q2014.
Nok’s passenger traffic surged 44% in 2013 to 5.9 million and grew by another 23% to 1.8 million in 1Q2014. TAA’s passenger traffic surged 27% in 2013 and grew by another 22% to 3.1 million in 1Q2014.
Revenue growth, however, lagged the growth in passenger numbers as both airlines had to lower fares to stimulate demand
Revenue growth, however, lagged the growth in passenger numbers as both airlines had to lower fares to stimulate demand. Both carriers also saw load factor drop, an indication of over-capacity.