1. .....
Low Cost Airline
Nok Air
Presented by
Group 3

2. 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

5. 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

6. 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.

7. 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

8. SWOT
Weaknesses
– Price
– Low experience of management team
– Bad cash flow problem
– Low level of advertising

9. 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

10. 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

11. Target Customer
• Local Thai
• international tourists
• family visitors
• leisure and business travelers

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

13. Flight
Schedule

14. Nok Air
Route Map

15. 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

16. Comparison of Pricing Strategy
NOK Air Air Asia 1-2-Go
•First come – Lowest •First come – Lowest •One pricing strategy*
Price* Price* •Period discount
(No other promotion) •Period discount
* Price excluding Airport Tax and fee

17. Promotion
• Flight attendance contest
• Public Relation
• Advertising
– Radio
– Magazine

18. Ad. Spending
Ad.Spending 2000 2001 2002 2003 2004
Total Ad. 499,590,000 295,412,000 217,476,000 363,360,000 293,657,000
Air Asia 4,553,000 30,346,000
Nok Air 6,246,000
Orient Thai 1,667,000 7,127,000

19. Key success factors
• Providing clear information especially on
“price”
• Safety assurance
• Route provide
• Service provided on board
• On time schedule

20. Thank you