THAI and Nok set to forge ties

Thai Airways International (THAI) and its rebellious sister carrier Nok Airlines have agreed to bury the hatchets and vowed to work together to create a synergy to ride out the perfect storm of industry downturn.
In a deal brokered by Nok's new chairman Vichit Suraphongchai and board director Somchainuek Engtrakul, the two main characters -- THAI executive board chairman Wallop Bhukkanasut and Nok chief executive Patee Sarasin agreed to forget about their past differences and start anew.
The handshake on Monday during Nok's board meeting was preceded by talks by parties concerned last Thursday when the subject of reconciliation between the carriers was specifically tackled.
THAI, which owns 39% in Nok, had been unhappy with the budget airline's "autonomous'' style in running its businesses which at times conflict with those of its mother carrier and did not produce the returns the flag carrier expected.
THAI has been wary about the financial health of Nok which posted a loss of 502 million baht last year due to the spiking oil prices, global economic turbulence and over-expansion, which included the launch of international services to Vietnam and India.
However, Nok had seemed to emerged relatively successfully from a dramatic rationalisation launched in the middle of last year by shedding nearly half its workforce of 1,000, halved its Boeing 737 jet fleet to three, terminated all overseas routes, slashed flights by half and cut salaries. The measures has enabled it to turn black since late last year.
"We both (THAI and Nok) had learned the lesson. Being hard to each other got us nowhere,'' Mr Wallop said on Wednesday.
He said both sides appreciate the need for collaboration and to establish a synergy that would enable them to prosper in the same way as Singapore Airlines and SilkAir, and Qantas and Jetstar.




(Bangkok Post)