Low Cost Airline Nok Air

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Low Cost AirlineNok Air
.....

• Presented by Group 3

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Industry Background

• Liberalization (Open sky)
• Government subsidized tourism business
• Air transportation
• National Airline
• Secondary Airline
• Low Cost Airline
• Pricing strategy

3
Industry Background

• Low Cost Airline
• Thai Air Asia
• Shin Corp (51)
• Air Asia Malaysia (49)
• One two go
• Orient Thai (100)
• Nok Air
• Thai Airways (39)
• Crown Property Bureau, Krungthai Bank, Private
  investors and Dhipaya Insurance (61)

4
Company profile

• Registered under Sky Asia Co.,Ltd.
• A joint venture between public and private
  investors.
• Thai Airways International Public Company
  Limited, - CPB Equity Company Limited,- SCB
  Securities Company Limited, - Krung Thai Bank
  Public Company Limited, -Dhipaya Insurance
  Public Company Limited, -Goverment Pension Fund,
  - Thailand Prosperity Fund by ING Funds
  (Thailand) Company Limited,- King Power
  International Company Limited, - Individual
  investors

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Company profile (cont.)

• Offer the same safety standard as Thai Airways
  International
• Nok Air will be flying to all parts of Thailand,
  with Chiang Mai, Hat Yai, Udon Thani, and Phuket
  as the planned destinations during 2004

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Vision

• With Nok Air, air travel will no longer be
  expensive for Thais. Nok Air will help enhance
  the quality of life for Thais to be comparable of
  those in other developed countries. Thais will
  now be able to explore the beauty of our own
  countries, families will now have more
  opportunities for reunion and business travelers
  will now be able to pay more sensible prices for
  airfares.

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SWOT

• Strengths
• High number of distribution channels
• Strong backup
• Best Human Resource
• Best service quality
• Brand awareness
• Effectiveness in space management on flight
• High level of employee quality

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SWOT

• Weaknesses
• Price
• Low experience of management team
• Bad cash flow problem
• Low level of advertising

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SWOT

• Opportunities
• High number of demand
• Convenience and faster
• Joint promotion
• Higher growth rate
• Growth rate increasing by Hong Kong and Ma Gout
  traveler with high number of booking rate
• Government support open sky policy

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SWOT

• Threats
• High number of competitor in the Market
• Singapore government support low cost airline in
  the country
• Price war with promotion war
• Boring about long time booking (behavior change)
• Payment Policy
• Confirmation Process
• Fuel cost increasing
• 20 increase for airline tax

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Target Customer

• Local Thai
• international tourists
• family visitors
• leisure and business travelers

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Product

• Destination
• Chiang Mai
• Udon Thani
• Phitsanulok
• Phuket
• Had Yai
• Khon Kaen (Future Route)

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Flight Schedule
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Nok Air Route Map

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Services

• Call Center Number
• Call 1318 (Operating hours from 8.00 - 21.00)
• Channels to Book
• Website, Call Center, and Airport Ticket Office
• Channels to Pay
• Cash at 7-Eleven Counter Service Plus,
• Master/VISA card online, and via the call center,
  
• Direct transfer at SCB ATM,
• Also many more channels to come in the future

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Comparison of Pricing Strategy
Price excluding Airport Tax and fee
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Promotion

• Flight attendance contest
• Public Relation
• Advertising
• Radio
• Magazine

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Ad. Spending
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Key success factors

• Providing clear information especially on price
• Safety assurance
• Route provide
• Service provided on board
• On time schedule

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Thank you