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Nok Air blames some of its losses on MPs who don’t show up for flights

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Nok Air blames some of its losses on MPs who don’t show up for flights | The Thaiger
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Part of Nok Air’s current losses are being blamed on privileged MPs, who receive free flights on the budget carrier but don’t turn up for their flights.

Somboon Uthaiwiankul, secretary for the government’s House Speaker, says the issue was brought up by executives of the airline during a meeting with the House Speaker, Chuan Leekpai. The executives told him last week that 113 MPs had reserved free seats on the budget carrier but failed to turn up for the flights, meaning Nok Air was unable to sell those seats to paying customers.

Nok Air says they’ve incurred 3.5 million baht in losses for flights the MPs, both past and present, booked but never showed up for. The MPs didn’t cancel the bookings, meaning that the seats flew empty. Nok Air filed for rehabilitation protection with the Thai Central Bankruptcy Court on July 20.

The airline complained that it was unable to get reimbursements for the empty seats from parliament because the MPs didn’t actually travel on the flights. Just 5 MPs caused the losses of over 100,000 baht. Somboon says they are “well-known and wealthy people”.

The House Speaker has so far determined that the issue is “a personal matter” and should be settled between Nok Air management and the individual MPs.

“It is the responsibility of the MPs to account for their own actions.”

In late 2013, Nok Air announced a joint venture with Scoot Airlines (a low-cost subsidiary of Singapore Airlines) to form NokScoot, a low-cost regional airline based out of Bangkok’s Don Mueang Airport. The joint venture was shut down in June this year. Thaveechat and Nuttapol Chulangkul, heirs to Thai Summit Group, an automotive parts manufacturer, became the largest shareholder group in the budget carrier in May 2017. Nok Air has racked up debts of 26.8 billion baht since March 31.

Thai Airways has nearly 16% share holding in the domestic discount carrier.

Nok’s fleet is made up of Boeing 737-800s and Bombardier Dash 8 aircraft.

SOURCES: Bangkok Post | Wikipedia

Nok Air blames some of its losses on MPs who don't show up for flights | News by The Thaiger

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1 Comment

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  1. Avatar

    Toby Andrews

    August 7, 2020 at 11:40 am

    They are in debt at 26.8 billion baht.
    When there is nothing in the fridge don’t give out free food.
    The free flights are just advanced bribes, for favours later.
    Just stop the MP’s free flights.
    Simple.

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Business

Thai Vietjet introduce new “Deluxe” product for domestic routes in Thailand

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Thai Vietjet introduce new “Deluxe” product for domestic routes in Thailand | The Thaiger
PHOTO: www.vietjetair.com

Thai Vietjet, which currently operates 13 domestic routes within Thailand, is launching a new “Deluxe” product, starting from 999 baht. The “Deluxe” tickets will include 7 kilos of carry-on and 20 kilos of checked luggage (currently an additional charge), as well as seat selection and priority check-in. Date, route and flight changes are also permitted 1 time, free of charge.

Deluxe fares are available for travel between October 6 and December 31, excluding public holidays, on all domestic routes operated by the carrier. The 999 baht price tag does not include taxes and fees. Thai Vietjet is adding a number of new routes to its current network, including Chiang Rai to Hat Yai from November 1, and Bangkok Suvarnabhumi to Hat Yai, Khon Kaen, Nakhon Si Thammarat, Ubon Ratchathani, and Surat Thani from November 4.

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SOURCE: Chiang Rai Times

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Economy

Vietnam’s booming manufacturing sector reduced to a trickle as world pandemic kills demand

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Vietnam’s booming manufacturing sector reduced to a trickle as world pandemic kills demand | The Thaiger

Vietnamese finance officials are downgrading expectations for a recovery of the south east Asian nation’s economy in 2021. The normally fast-growing gross domestic product in 2020 has stalled due to a huge drop in local and global demand, and the absence of international tourism. The booming economy, growing at an average of 6% per year since 2012, will struggle to reach a growth rate of 2% this year.

Fuelled by manufactured exports, the Vietnam economy has dropped back to a trickle. The Asian Development Bank estimates that this year’s GDP growth could be as low as 1.8%. The Vietnamese factories, that usually crank out shoes, garments, furniture and cheap electronics, are seeing dropping demand as the world’s consumer confidence drops dramatically.

Stay-at-home rules in Europe and America are keeping are keeping people away from retail stores. And despite the acceleration of online retail, many of the consumers are emerging from the Covid Spring and Summer with vastly reduced spending power.

The headaches of 2020 are also challenging Vietnam to maintain its reputation as south east Asia’s manufacturing hotspot. Rising costs and xenophobic foreign policy have put China ‘on the nose’ with some governments, complicating factory work in China, whilst other south east Asian countries lack infrastructure and are incurring higher wage costs.

One Vietnamese factory operated by Taiwan-based Pou Chen Group, which produces footwear for top international brands, has laid off 150 workers earlier this year. There are hundreds more examples of the impact of falling demand in the bustling Vietnamese manufacturing economy.

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The Vietnamese Ministry of Planning and Investment is now warning that global post-pandemic recovery could take as long as 4 years, perhaps more.

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SOURCE: VOA News

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Thailand

Thai Air Asia returns to Suvarnabhumi in addition to its Don Mueang hub

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Thai Air Asia returns to Suvarnabhumi in addition to its Don Mueang hub | The Thaiger

Thai AirAsia is spreading its Bangkok wings and opening up a secondary hub at the main Suvarnabhumi airport (BKK), to help broaden its attraction and bolster its bottomline. Thai Air Asia was the first airline to head back to the moth-balled Don Mueang in 2012 to re-establish the older airport after all the airlines moved across to the new Suvarnabhumi and discount airlines were seeking a lower-cost base.

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Thai Air Asia have been concentrating on their ‘bus’ model to ferry passengers from the terminals to their aircraft waiting on remote airport aprons, and visa versa, to avoid some of the landing charges and using the sky-bridges. Some passengers have been complaining about the long trips in crowded buses, wild rides and over-enthusiastic air conditioning, whilst being told to strictly adhere to social distancing.

This week the Malaysian parent company Air Asia, announced the introduction of a ‘super app’, in an attempt to off-set the significant financial losses brought about by the Covid-19 pandemic. The mobile application shuffles Air Asia’s model as a flight and accommodation provider, to a broader platform of complimentary services. The app will offer users a variety of options, including digital payment services, delivery services, and an e-commerce platform. Air Asia Chief Executive and founder, Tony Fernandes, says the idea for the app was floated prior to the pandemic, but Covid-19 hastened its development.

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