Budget Thai carrier Nok Airlines returns to profitability

Nok Airlines, the Thailand-based no-frills carrier that was near financial ruin last year, has moved to a position of profitability after severe cost-cutting and organizational streamlining efforts. It returned to profitability in October, and posted earnings of 82 million baht for the final quarter of 2008.

Profits of 30 million baht posted this month maintain the positive outlook for the carrier.

”We are out of the ICU (intensive care unit) now and back to a normal state,” noted the airline’s chief executive, Patee Sarasin.

This positive result coming so soon has been a surprise to most airline analysts. Most airlines have seen profits decline as economic conditions around the world have seriously impact demand for air travel – on the back of last year’s soaring fuel costs.

Airlines in Thailand also suffered from the closing of Bangkok’s Suvarnabhumi and Don Mueang airports from 25 November through 2 December last year by anti-government protesters, the People’s Alliance for Democracy (PAD).

Sarasin cited the company’s extensive cost-cutting and efficiency improvements for brining the operation back into the black.

Thanks to www.bangkokpost.com for the above quotes, for more information on this article please visit their website.

www.nokair.com