NokScoot plans 2H2014 launch with two 777s, targeting Thailand-Japan and North Asian markets

[flee 5]

Looks like they are going head on with Thai Airasia X:

 

A new game in Thailand's hotly contested low-cost-carrier (LCC) market is beginning in the long-haul low-fare segment, with Thailand's Nok Air teaming up with Singapore's Scoot to create a joint-venture...

Full report:

http://www.bangkokpost.com/business/aviation/385003/nok-air-joins-with-singapore-scoot

[Mulyadir Fitri 0]

Nok Air's beak on a 772's nose. That will be very interesting.

[flee 5]

Thai Airways' affiliate Nok Air and Singapore Airlines' (SIA) subsidiary Scoot should be able to build on their respective strengths as they enter Thailand’s medium/long-haul low-cost sector with the launch of NokScoot. The two companies are well positioned to establish a strong competitor to Thai AirAsia X.

Thailand will become the first country to have two carriers following the emerging long-haul LCC model, providing an intriguing dynamic and ushering in a potentially unprecedented level of competition. While NokScoot and Thai AirAsia X will likely have similar networks, some product differences could emerge as Nok Air follows more of a hybrid model compared to AirAsia, AirAsia X and Scoot.

NokScoot plans to operate an initial fleet of two 777-200s sourced from SIA. The new carrier at least initially will focus on destinations in North Asia, particularly Japan. Thai AirAsia X is expected to serve some of the same routes but with more efficient A330-300s.

Nok and Scoot signed on 13-Dec-2013 a non-binding memorandum of understanding to establish NokScoot as a new medium/long-haul LCC based at Bangkok Don Mueang Airport. The two carriers announced the tie-up on 16-Dec-2013, stating that Nok will own up to 51% in NokScoot and Scoot will own 49%. Fleet, product or network details were not provided.

NokScoot to launch with two 777-200s; to later transition to 787s

http://centreforaviation.com/analysis/nokscoot-to-launch-in-2h2014-with-777-200s-targeting-thailand-japan-and-other-north-asian-markets-144869

[JuliusWong 0]

Wow! This escalated fast, no wonder AirAsia X responded with 25 more A333. Perhaps SQ has more B772 and B773 older generation to offload next year.

[flee 5]

I don't think so - ex SQ aircraft has to be reconfigured to Scoot seating density. Scoot will just send its current B772s to Thailand once their B787s start to arrive in 2014.

[geoff.leo 0]

The problem with Tigerair and Scoot was that individually, their brand power has always been far weaker than that of the AirAsia group. And it's the same story for NokAir in Thailand.

 

The joint venture in Thailand will only exacerbate this problem.

 

SIA, unfortunately, has yet to figure out how to run Tigerair with sustainable and consistent operational profitability. In the medium/long-haul low-cost market, if successful AirAsia is taking a long time to achieve consistent profitability with AirAsia X, you can expect the situation to be much worse for SIA with respect to Scoot.

 

Successful foreign franchises/JVs like AirAsia work because they do so only after having built a solid foundation at home. Tigerair never achieved that. Scoot will take even longer. Which is why all of Tigerair's foreign forays have been disappointing. The SIA group is again deploying the same tactics now with Scoot, with yet another sub-brand in NokAir.

 

You get the impression at the end of the day, that the SIA group continues to do "something" for the sake of not being seen as doing nothing in the low-lost market. They clearly haven't got a clue of what they're doing.

[flee 5]

I think Airasia's stroke of genius is having a common brand. Most pax are blind to the differences between the various operations - they just see Airasia. So when new operations like Thai AAX joins in, they already have the brand recognition.

 

With bookings made on a single web site there is no need for code sharing at all - so no extra costs. That is what makes the Airasia brand pervasive.

[flee 5]

Thailand's NokScoot plans ambitious expansion with seven more 777s and complete focus on China

 

Thailand’s medium/long-haul LCC NokScoot is planning ambitious expansion, with the acquisition of seven additional 777-200s. A fleet of 10 aircraft, compared with the three currently, will result in improved scale and efficiencies, potentially enabling NokScoot to become profitable.

The joint venture start-up between Thailand’s Nok Air and Singapore’s Scoot is bullish on opportunities in the fast-growing Thailand-China market. NokScoot already serves five destinations in mainland China, despite only having three aircraft.

A sixth Chinese destination is being added in Sep-2016 when Taipei – NokScoot’s only destination outside mainland China – is dropped. NokScoot needs to expand its fleet to pursue further growth in China and also still has long-term aspirations to serve Japan and South Korea.

More: http://centreforaviation.com/analysis/thailands-nokscoot-plans-ambitious-expansion-with-seven-more-777s-and-complete-focus-on-china-297982

[JuliusWong 0]

Guess with more A350 coming online, SQ will shed more B772/773 for NokScoot, however they are not getting any younger. Has Thai Aviation Authority lifted the ban on older aircraft?