Nok’s Scoot strategy spot on

BANGKOK Centre for Asia Pacific Aviation says the joint venture, NokScoot, will unlock new growth opportunities for Nok Air, as connectivity develops through its links to the Singapore Airlines group.
CAPA said NokScoot represents an important growth vehicle for Nok as it enables the airline to start penetrating the medium/long-haul market, where it will compete with recently launched Thai AirAsia X.
Thai AirAsia X will operate direct flights from Bangkok (Don Mueang Airport) to Japan’s Tokyo Narita International Airport (daily) and Osaka Kansai International Airport (five weekly flights on Mondays, Wednesdays, Fridays, Saturdays, and Sundays) starting 1 September. The airline launched daily flights from Bangkok to Seoul Incheon International Airport 17 June.
Connections will also be an important component of the NokScoot model, the centre said.
“The new airline should drive incremental traffic to Nok Air’s existing short-haul operations as well as on Scoot’s flights between Bangkok and Singapore.”
Nok Air has one of the strongest domestic networks and competes head-on with Thai Air Asia. Its domestic flights will enable NokScoot and Scoot to transfer passengers to a variety of destinations in Thailand with just one connecting stop at Don Mueang Airport.
Scoot is moving its daily Bangkok flight from Suvarnabhumi to Don Mueang 1 September, enabling connections to its new interline partner Nok Air and later on to NokScoot.
Scoot CEO Campbell Wilson was quoted as saying that Japan, South Korea and China are the three main target markets for NokScoot.
He pointed out that Bangkok is two hours closer to South Korea and Japan compared to Singapore, making it an efficient hub for North Asia. Strong demand in the Korea-Thailand and Japan-Thailand markets are also an attraction.
Scoot will also continue to operate several routes to North Asia from Singapore hub, but Mr Campbell sees Singapore as being the main jumping off point for Australia saving on flight time when compared with the Bangkok hub.
Thailand is further from Australia and given the current overcapacity in the Australia-Southeast Asia market, NokScoot is not expected to look at serving Australia at least during its initial phase, the centre explained.
“NokScoot is a vehicle for Nok particularly to fly further afield, bring more tourists to Thailand and give Thai residents a new opportunity to fly overseas in a low-cost format.”
Nok Air and Scoot of Singapore Airlines’ low-cost unit signed a Memorandum of Understanding, 16 December 2013, to establish a new low-cost airline that will be based in at Don Mueang International Airport in Bangkok.

sourced:ttrweekly.com