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.....Low Cost AirlineNok AirPresented byGroup 3
Industry Background• Liberalization (Open sky)• Government subsidized tourism business• Air transportation  – National Air...
Industry Background• Low Cost Airline  – Thai Air Asia     • Shin Corp (51%)     • Air Asia Malaysia (49%)  – One two go  ...
Company profile• Registered under Sky Asia Co.,Ltd.• A joint venture between public and private investors.  – Thai Airways...
Company profile (cont.)• Offer the same safety standard as Thai  Airways International• Nok Air will be flying to all part...
Vision With Nok Air, air travel will no longer be expensive for  Thais. Nok Air will help enhance the quality of life for ...
SWOTStrengths  – High number of distribution channels  – Strong backup  – Best Human Resource  – Best service quality  – B...
SWOTWeaknesses – Price – Low experience of management team – Bad cash flow problem – Low level of advertising
SWOTOpportunities  – High number of demand  – Convenience and faster  – Joint promotion  – Higher growth rate  – Growth ra...
SWOTThreats  – High number of competitor in the Market  – Singapore government support low cost airline in the    country ...
Target Customer•   Local Thai•   international tourists•   family visitors•   leisure and business travelers
Product• Destination  – Chiang Mai  – Udon Thani  – Phitsanulok  – Phuket  – Had Yai  – Khon Kaen (Future Route)
FlightSchedule
Nok AirRoute Map
Services• Call Center Number:  – Call 1318 (Operating hours from 8.00 - 21.00)• Channels to Book :  – Website, Call Center...
Comparison of Pricing Strategy      NOK Air                Air Asia                1-2-Go•First come – Lowest   •First com...
Promotion• Flight attendance contest• Public Relation• Advertising  – Radio  – Magazine
Ad. SpendingAd.Spending     2000          2001          2002          2003          2004Total Ad.     499,590,000   295,41...
Key success factors• Providing clear information especially on  “price”• Safety assurance• Route provide• Service provided...
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Low cost airline

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Low cost airline

  1. 1. .....Low Cost AirlineNok AirPresented byGroup 3
  2. 2. Industry Background• Liberalization (Open sky)• Government subsidized tourism business• Air transportation – National Airline – Secondary Airline – Low Cost Airline• Pricing strategy
  3. 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. 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. 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. 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 developedcountries. 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. 7. SWOTStrengths – 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. 8. SWOTWeaknesses – Price – Low experience of management team – Bad cash flow problem – Low level of advertising
  9. 9. SWOTOpportunities – 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. 10. SWOTThreats – 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. 11. Target Customer• Local Thai• international tourists• family visitors• leisure and business travelers
  12. 12. Product• Destination – Chiang Mai – Udon Thani – Phitsanulok – Phuket – Had Yai – Khon Kaen (Future Route)
  13. 13. FlightSchedule
  14. 14. Nok AirRoute Map
  15. 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. 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. 17. Promotion• Flight attendance contest• Public Relation• Advertising – Radio – Magazine
  18. 18. Ad. SpendingAd.Spending 2000 2001 2002 2003 2004Total Ad. 499,590,000 295,412,000 217,476,000 363,360,000 293,657,000Air Asia 4,553,000 30,346,000Nok Air 6,246,000Orient Thai 1,667,000 7,127,000
  19. 19. Key success factors• Providing clear information especially on “price”• Safety assurance• Route provide• Service provided on board• On time schedule
  20. 20. Thank you

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