Jet lease rejection to affect Nok Mini flights
Bangkok Post: 25 Jun 2010
End of lease means fewer Nok Mini routesNok Mini, a commuter airline, is reeling after having been forced to drop three routes due to the unexpected rejection of its bid to renew the lease of two Saab 340B planes.
The Saab 340B is the model being recalled at the end of the lease term this month.
The three dropped routes include its first international service to Jinghong in southern China.
Regional Express Pty Ltd, a New South Wales-based airline also known as Rex, has declined to renew a six-month lease for the two 33-seat turboprops, which is due to expire this month.
Rex cited Thailand's political turmoil, which has adversely affected the tourism industry, as the reason for not extending the lease to Nok Mini, formerly known SGA Airlines.
Nok Mini has suspended scheduled services on its Chiang Mai-Udon Thani and Chiang Mai-Khon Kaen routes as well as Chiang Rai-Jinghong which only started on June 9.
The three routes will be "temporarily" suspended, effective July 1, though there is no timeframe for resumption.
Nok Mini executives were disappointed by Rex's decision which has dealt a major blow to the carrier which was counting on the Saab 340Bs to drive its network expansion.
The loss of the two craft will see the carrier's fleet shrink to just three small single-engine Cessna 208B Grand Caravan propeller planes, each with the capacity to seat 12 passengers.
The airline is now searching for two French-made ATR-42s, a larger 44-seat turboprop plane, as replacement, said executives at Nok Mini.
Nok Mini, in operation for nearly nine years, hopes to add the leased ATR planes to its fleet in October in time for the peak travel season and enabling it to revive the three routes.
The airline has opted for ATRs to form a common fleet with Nok Airlines, or Nok Air, the budget carrier in which Thai Airways International owns 39%.
Nok Air has been operating two ATR-72s, the stretched version of the ATR family planes, on inter-provincial routes.
SGA Airlines has formed a loose alliance with Nok Air by positioning itself as a sub-brand, i.e. Nok Mini, even though there is no corporate tie or cross-shareholding with Nok Air.
There are talks between Nok Mini and Nok Air about the latter taking over the Chiang Mai-Udon Thani and Chiang Mai-Khon Kaen routes while Nok Mini still does not have the needed planes.
Nok Mini operates a daily flight on the Chiang Mai-Udon Thani route and three flights a week on Chiang Mai-Khon Kaen.Nok Mini will continue to operate three older routes - Chiang Mai-Pai, Chiang Mai-Mae Hong Son and Chiang Mai-Nan - and offering charter services.
http://www.bangkokpost.com/business/aviation/182481/end-of-lease-means-fewer-nok-mini-routes