The restructuring plan for another carrier

The low-cost airline in Thailand, Nok Air has begun the process of reorganizing, but you might not have heard of it, as Thai Airways International took the main spot in headlines. The privately-held career would be benefiting from the same rehabilitation protection as Thai Airways.

But, unlike the lessors for the flag carrier, the Nok Air’s lessors have less to worry about. As compared to Thai Airways, it only has around half the number of leased aircraft and its fleet is simpler too.

They have multiple units exposed, but that’s not the only concern, as the carrier’s rehabilitation is very crucial because the other similar Thai carriers, who also seek restructuring are watching this process closely. The manager further said that in their rescue plan there were not many guidelines about operating lessors, so it made us worried about their plans for us. Whereas the other airlines mentioned above have a good number of leased aircraft in their fleets.

Nok got the permission to restructure under the business rehabilitation protection a few months back by the country’s Central Bankruptcy Court. According to the sources, it was not before late last year that the lessors were approached by the company and its rehabilitation planner, to ask for sweeter lease terms.

They also proposed that the rates would be lower during the off-season, but higher during peak seasons. The lessor replied to this request in December.

The carrier’s proposals have not been accepted by all the lessors, as some have shown interest in their aircraft out, even though the aircraft demand is pretty low, due to the ongoing crisis. Even if there’s no crisis and the market is operating smoothly, the process for repossessing aircraft can be slow and painful and the country is not known to make this process any simpler. But, the lessors taking their aircraft doesn’t mean it’s going to be too bad for the airline.

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