Seattle: The delivery of Boeing's 16th B737-800 Next Generation jet aircraft at Boeing Field last Friday had a special significance for budget carrier Nok Air, which celebrates its 10th anniversary this month.
Nok Bussarakam takes off from Boeing Field in Seattle, Washington last Friday to begin its journey to Thailand.
The brand-new narrow-body jetliner features the airline's unique bird-themed livery but with the addition of stars, streamers and "10th Anniversary" painted on it to mark the milestone.
Nok Air chief executive Patee Sarasin described the aircraft with its one-off livery as symbolic of the airline's stride to become Thailand’s leading "premium" low-cost carrier (LCC) over the past decade.
Nok Bussarakam, which is Thai for "topaz bird", is the fourth brand-new B737-800NG the SET-listed carrier has acquired in a continuing transit away from pre-owned aircraft and to take advantage of benefits including the fuel-efficiency that brand-new jets can offer. The average age of Nok Air's fleet of 14 737-800NG jets at the end of last year was 8.4 years, according to the company’s annual report.
Nok Air embarked on a fleet rejuvenation in January 2013 with the acquisition of its first new B737-800NG, followed by two more in August 2013 and March of this year.
However, most of Nok Air's B737-800NG fleet is pre-owned and leased from different aircraft lessors.
Similarly, Nok Bussarakam is also leased from the Irish leasing company Avolon, which bought the aircraft from Air Berlin, the original owner, before that airline could take delivery.
It is the first contract Avolon has landed with Nok Air, an Avolon executive confirmed without going into specifics other than saying the deal for the US$40-million aircraft came with the industry's standard 12-year lease.
Nok Air made its boldest move towards modifying its fleet in May, when it placed a firm order with the US plane maker for 15 new B737 single-aisle family jets worth a combined US$1.45 billion — eight B737-800s and seven B737 Max jets.
The agreement turns Nok Air as the first airline in Thailand to operate the 737 Max, the future version of the best-selling B737 family of jet aeroplanes, which became the first civil jet to surpass the 10,000-order milestone.
The contract marks the airline's first direct order with the US plane maker. However, the LCC is still working on financing of the new B737 fleet, and options include funding from the Export-Import Bank of the US and finance leasing, an arrangement in which Nok Air effectively comes to own the aircraft.
The airline will take delivery of the eight B737-800NG jets from 2015-17, with the first one operating from August of next year, Nok Air executives said. It plans to convert one of the B737NGs into a B737 Max at a later date, thus raising the number of the airline’s B737 Max fleet to eight.
The eight 737 Maxes are due for delivery to the Thai discount airline in 2018 and 2019, four per year.
Special livery aside, Nok Bussarakam will come equipped with Ku-band satellite-based connectivity to be provided for free to passengers after it is installed during a stopover in Taiwan. It will be the first of Nok Air's new jets for which broadband internet will come as standard.
Nok Air has partnered with the California-based Global Eagle Entertainment Inc (GEE) to equip its aeroplanes with Ku-band satellite-based connectivity and content services.
The deal follows the start of a partnership between GEE and Thaicom Plc that will see the two companies jointly develop, implement and support in-flight connectivity solutions for airlines in Thailand and across Southeast Asia.
Nok Air, which operates mainly domestic service, expects to raise its passenger count to 7 million this year from 5.89 million last year.
The LCC began life in July 2004 with two B737-400s leased from Thai Airways International and operating from its Don Mueang airport base.
In a related development, Nok Air has converted two of four previously placed options for Bombardier's Q400 NextGen turboprops into firm orders valued at $66 million. The conversion, announced yesterday, raises the overall commitment for the Canadian-made aircraft to six.
NOK shares closed yesterday on the SET at 17.20 baht, down 20 satang, in trade worth 68.7 million baht.
