GreenBkk.com Aviation | Nok Air lands leasing deal with GE to support expansion

Nok Air lands leasing deal with GE to support expansion

Published: 30/05/2011 at 12:00 AM

Nok Air has sealed a deal to lease seven Boeing B737-800 jets from GE Capital Aviation Services Ltd to rejuvenate its fleet and support expansion of operations.

The B737-800 is more fuel-efficient and capable than the B737-400, enabling Nok Air to improve flight economy and extend aircraft utilisation hours to 12 hours a day, from eight now.

The budget airline, 39% owned by Thai Airways International (THAI), will receive the first one from GE's commercial aircraft leasing and financing unit in November.

Patee Sarasin, Nok's chief executive, said under the terms of the five-year lease, the jets, each with 189 seats, will replace four older B737-400s including those leased from THAI while rendering additional capacity.

The B737-800 is more fuel-efficient and capable than the B737-400, enabling the airline to improve flight economy and extend aircraft utilisation hours to 12 hours a day, from eight now.

Nok Air has commissioned Lufthansa Technik, a provider of maintenance, repair and overhaul services for aircraft and a subsidiary of Germany's flag carrier Lufthansa Airlines, to look after the B737-800s.

In addition, Nok is close to concluding another deal to lease four ATR 72-500 turboprops from Denmark-based Nordic Aviation Capital, the world's largest lessor of turboprop aircraft.

The four ATRs under a five-year lease will be delivered to Nok in August to support the budget carrier's expanding secondary route network, which is now being served by two ATRs leased from THAI.

Nok Air intends to keep the two ATRs leased from the flag carrier.

This Friday, it will commence daily service to the restive southern province of Narathiwat in a bid to break the monopoly enjoyed by rival budget carrier Thai AirAsia.

It will use Boeing 737-400 aircraft on the route to tap growing demand, particularly by government and security officials as well as business travellers and residents.

Narathiwat will become Nok Air's 18th destination, all of them domestic, with more in the pipeline.

Credit: Bangkok Post (www.bangkokpost.com)