Coconut firm unveils its plan to thrive as a global brand

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Coconut-firm-unveils-its-plan-to-thrive-as-a-globa-30279736.html

THEPPADUNGPORN Coconut Company (TCC) is celebrating its 40th anniversary of expertise in coconut products, which it says is guaranteed to continue with its top global sales position.

This year, it is firming up its position as a global brand. It recently signed a partnership contract with Liverpool Football Club, enabling it to promote its coconut water under the Chaokoh brand among health-conscious people and sportsmen.

TCC also looks to participate in global food fairs in every region while working to retain its No 1 position at home in the coconut-products market.

Besides its best-selling coconut-milk products, TCC is ready to penetrate the markets for virgin coconut oil and coconut drinks while promoting Mae Ploy as a brand that specialises in authentic Thai-style sauce and paste. In addition, TCC emphasises CSR (corporate social responsibility) campaigns to improve people’s health, quality of life, and the environment.

Aphisak Theppadungporn, managing director of TCC, said the company last year earned very positive feedback towards and confidence in its products from its partners and consumers worldwide.

Its best-selling products include coconut milk, sweet chilli sauce, coconut water, curry paste, and virgin coconut oil, while new products like roasted coconut chips are also selling well.

“This year we are fully confident in our potential to continue marketing our products globally while at the same time working more proactively to market our highlight products such as coconut milk, coconut water, and virgin coconut oil under the Chaokoh brand, as well as curry paste and sweet chilli sauce under the Mae Ploy brand.

“We’ll be running roadshows and promotions in celebration of our 40th anniversary throughout the year,” he said.

He added that the company had set two major goals this year: to become a global brand and to be a content provider.

“As a content provider, we will share our deep knowledge of coconut-processed products and Thai seasonings for both coconut growers and the public. For the coconut growers, we will advise them on how to grow coconuts with improved quality, and for the public, we will share with them cooking techniques and health-related knowledge through TV programmes, articles, and research.

“Overseas, we will supply food-trend insights by region, which show that the world has always been looking for healthy food.

“We are able to do all this because we have been in this industry for 40 years. That’s why we can come up with the proactive marketing plans for both the domestic and global markets,” Aphisak said.

To strengthen its position as a global brand, TCC recently signed a contract with Liverpool FC for entering a business partnership. The signing ceremony was attended by the club’s executives and Liverpool FC legend Robbie Fowler as the ambassador.

This is the first time a Thai brand of coconut-based food and milk products has sponsored a globally renowned football club.

Besides the Chaokoh logo appearing in the media with Liverpool FC, Nuntinee Theppadungporn, international sales and marketing manager, said TCC would also launch products with special packages for health-conscious people.

MPG shifts focus to beauty products

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/MPG-shifts-focus-to-beauty-products-30279733.html

EXCLUSIVE INTERVIEW

Nalaanlat Nunnonl, chief marketing officer of MPG Corp.

Nalaanlat Nunnonl, chief marketing officer of MPG Corp.

MPG Corp, listed operator of the Mangpong chain of stores selling Blu-ray discs, DVDs and CDs, is undergoing a major revamp of its business portfolio, shifting the focus from being a retailer of home-entertainment products to the owner and distributor of house-brand makeup and skincare products.

Nalaanlat Nunnonl, chief marketing officer, said the company’s vision was now to become one of the leading players for beauty products in Asean by 2020.

The company next month will launch its own house brands – Clouda for makeup and Keira for skincare – with about 100 products altogether.

The ranges will be distributed via a number of channels, both online and offline.

“We will next year explore selling our house-brand cosmetics beyond Thailand, primarily to the CLMV markets [Cambodia, Laos, Myanmar and Vietnam]. We will appoint local distributors in each of those territories. Under the 2020 vision, we will shift the way we do business from business-to-consumer to be more business-to-business,” she said.

“We want to stand behind the beauty of women in Asean. Our house-brand cosmetics will be distributed to all potential markets throughout the region.”

MPG wants to grow its annual revenue from around Bt400 million posted last year to about Bt5 billion in 2020, of which 80 per cent will be contributed by its own house-brand beauty products and the rest from its existing retail businesses.

The revenue contribution from overseas markets will be about 40 per cent by 2020, Nalaanlat said.

The business revamp is in line with the arrival of digital technology, which allows individuals to download and enjoy movies and music in front of a computer screen, she explained. Digital tech had affected traditional retailers of home-entertainment products, including Mangpong, which were burdened with huge stocks of music and movies as a result.

Mangpong is among the longest-established entertainment retailers in Thailand, merchandising a wide range of products, including Blu-ray discs, DVDs, compact discs, vinyl records and other formats.

Mangpong was established by Montri Mitsatha and Kityajai Triekvijit, who were both initially movie and music enthusiasts rather than businesspeople.

They opened their first store as a small movie and music retailer in 1981, before developing the business into Mangpong, a full-size retailer, in 1989.

The first Mangpong shop was located at The Mall Ratchaprasong, offering movies and music in the form of laser disc, VHS and cassette tape, as well as other entertainment-related products such as movie posters and T-shirts. Nalaanlat, a second-generation member of the Nunnonl family, said Mangpong had spent the years through to 1994 as the “beginning-to-stand era” for a business that was raised via her parents’ love for home-entertainment products. At that time, cassette recordings of Harajuku music became the most popular products sold by the company.

From 1995 to 2006, the company entered the “growing era” by acquiring the rights for blockbuster movies, such as “The Terminator” and “Lord of the Rings”, and retailing them as home-entertainment products.

Mangpong was a pioneering business in terms of bringing licensed Hollywood blockbusters into Thai homes, she said.

“In 2000, which was the peak year for Mangpong, the company operated about 300 Mangpong outlets, of which 200 were kiosks and the remainder were shops. The number of movie titles stocked in our library was as high as 100,000 at the time,” the chief marketing officer said.

The company then entered an “adjustment period” between 2007 and 2012, shaped by the transformation of media technology from cassette tape to digital format, which allowed movies on Blu-ray discs and DVDs to spread easily via a large number of players in the market.

“At that time, we adjusted ourselves by bringing in documentaries and edutainment content created by the BBC, such as ‘Planet Earth’ and ‘Blue Planet’, to sell exclusively at our Mangpong stores, in order to offer different products to the market,” Nalaanlat said.

However, with the rapid development of the Internet and digital technology in recent years, today’s consumers can download and enjoy movies at home, she added.

“We have gradually reduced the number of Mangpong stores to about 24 today. The number of movie titles in our library has also declined gradually, to between 3,000 and 4,000,” she said.

Diversifying risk

In a move aimed at diversifying its business risk, MPG launched the Gizman chain in 2013 as a “house of lifestyle gadgets”. The flagship Gizman store was opened at the company’s headquarters on Lat Phrao Road Soi 90, while the first official outlet was opened at CentralPlaza Rama 3.

MPG now operates a chain of 30 Gizman stores.Inspired by Nalaanlat and her mother, MPG last year launched Stardust, a chain of multi-brand beauty stores, with its first outlet at Future Park Rangsit.

There are now seven stores in the Stardust chain. “We will this year convert full or partial space in 10 to 15 of our Mangpong stores to Stardust. We expect that by 2020, there will be about five Mangpong stores left in the marketplace, located only at prime locations in Bangkok,” MPG’s marketing chief said.

PDI to close SE Asia’s only zinc operation by end-2017

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/PDI-to-close-SE-Asias-only-zinc-operation-by-end-2-30279732.html

PADAENG Industry (PDI), the only zinc smelter in Southeast Asia, yesterday announced it would cease its zinc operations and let go of more than half of its 826 workers by the end of next year.

Managing director Francis Vanbellen said that since its Mae Sot zinc mine in Tak province – after 32 years of operation – would be fully depleted by the end of this year, and PDI had failed to obtain permits for new mine deposits in Thailand and neighbouring countries, the company’s board of directors resolved on Thursday to cease its zinc operations by the end of 2017.

Vanbellen said he could not provide exact figures on the number of people who would have to go, since the company wanted to communicate with its staff first, but more than half of its 826-strong workforce would have to leave by the end of next year.

Most of the 460 employees who are currently working at PDI’s zinc smelter in Tak, as well as most of the 200 workers at the Mae Sot mine, as well as some of the 100 staff at its roaster plant in Rayong and smaller numbers of staff at its Bangkok headquarters, will have their employment contracts terminated.

All of them will receive one month’s compensation for every two years of service, on top of severance pay under the normal standards stipulated by law. For example, a staff member who has been with the company for 10 years will receive 10 months of severance pay, plus five months extra.

The provisions for the closure and worker compensations will be announced by the end of this month when PDI reports its 2015 annual results to the Stock Exchange of Thailand. Vanbellen said the company would still show a positive result on its consolidated 2015 account, after impairment charges.

Both the Mae Sot mine and the Rayong plant will cease operations by the end of this year. The smelter in Tak will limit its operations by the end of this year, to produce only zinc metal and alloys until the second half of 2017. Beyond 2017, zinc activities will be completed based on recyclable domestic and possibly imported sources, according to PDI’s statement.

Vanbellen said PDI would continue to look for new businesses to succeed its zinc operations, consisting of renewable energy, waste management, recycled materials, and any opportunity in green businesses.

“We have Bt1.5 billion that we have allocated for our equity investments next year for these projects,” he said.

Vanbellen said PDI was conducting due diligence on three biomass power projects that it is looking to take over, and one of them would be finalised in two weeks. Each biomass plant, if managed well, will be able to generate Bt60 million to Bt80 million in annual profit for the company, which booked net profit of Bt312 million in 2014.

PDI is 13.81 per cent owned by the Finance Ministry, which founded the company. Country Group Holdings took a 15-per-cent stake in the company last year.PDI has also been invited to bid for building a municipal-waste treatment plant in Tak, where it has also been vying to obtain official permits to build an industrial waste treatment plant as well as a 50-megawatt solar farm, where it has also been vying to obtain official permits to build an industrial waste treatment plant as well as a 50-megawatt solar farm.

The company has also entered a joint-venture agreement with Carbon Reduction Technology AS, a Scandinavian recycling company, to pursue a project to recover zinc from industrial-waste streams at PDI’s current site in Rayong.

“You may ask if I failed. No, we didn’t fail,” Vanbellen said. “Ten years ago the management believed we could find new mines. We did find some but we can’t get permits [to start mining].

“I’m happy to tell the media I have to close the zinc operations. We [were able to] manage the company during the past years without cash losses. At the end of last year, we had more than Bt1 billion cash, which we can use to invest and pay people who leave.

“So we close in a positive way. That’s not failure. It’s success,” he said.

Voice TV lays off 57 employees amid fierce competition

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Voice-TV-lays-off-57-employees-amid-fierce-competi-30279731.html

Makin Petplai, CEO of Voice TV.

Makin Petplai, CEO of Voice TV.

FIERCE competition in the digital terrestrial TV sector has claimed a new victim, Voice TV news station, where more than 50 positions are being cut as part of a restructuring plan and cost-management efforts.

According to an official statement signed by senior marketing director Payungsak Charnduayvidya, Voice TV is setting its sights on being a forefront cross-platform content provider, putting more focus on providing quality content through various platforms, particularly online media.

To increase its capacity in the fast-changing media industry, Voice TV has to change its business strategy as well as restructure its organisation, the statement said.

It therefore decided to lay off 57 employees ranging from management to frontline, effective on March 1.

However, affected staff will get full compensation under labour law, while the remaining 300 employees will be continually trained and supported, it added.

Voice TV might also reduce its own TV production by 55 per cent, while news production will be cut by 35 per cent to pave the way for outsourcing and cost management, a source said.

Intense competition is believed to be behind the company’s retrenchment.

Makin Petplai was appointed as chief executive officer to steer the digital-TV station after it obtained a licence from the regulator.

However, after two years in operation and a series of marketing efforts, Voice TV is still ranked as hindmost player in the market, according to Nielsen Thailand data last month.

According to the Business Development Department, Voice TV suffered a loss of Bt310.12 million in 2014, after heavily investing in digital-TV business. Voice TV is owned by Panthongtae Shinawatra, the son of ex-prime minister Thaksin Shinawatra.

Ex-IT specialist succeeds in food, drink venture

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Ex-IT-specialist-succeeds-in-food-drink-venture-30279730.html

SMES CORNER

Renova Foods Co Ltd’s managing director and owner Chate Ratthanataworn presents the food products that distribute in Thailand market to drive its sale achieve Bt10 million in this year.

Renova Foods Co Ltd’s managing director and owner Chate Ratthanataworn presents the food products that distribute in Thailand market to drive its sale achieve Bt10 million in this year.

CHATE Ratthanataworn, now 45, decided five years ago it was time for a complete change in his working life, resigning from the organisation he had been working for as an information-technology specialist to become an entrepreneur.

He put savings of just Bt1 million into the new venture, and the business has since expanded into one generating revenue of Bt10 million, with double-digit annual growth targeted for this year and the next five years.

“I started my business with something that had a connection to my lifestyle. I love to drink coffee, and I had been trying to find the best-flavour coffee from domestic and overseas sources since I started as an IT employee at a corporate business.

“I then visited the ‘China Coffee Fair’ in 2011 and tasted Cafedirect from the UK, which was promoting its products at the event. I loved the Cafedirect flavour and decided to negotiate with the company to be the exclusive distributor of its products in Thailand,” Chate, the founder and managing director of Renova Foods Co, said during an interview with The Nation.

He said he had used his savings to order the first three shipments of Cafedirect coffee for local distribution.

The premium products from Britain enabled him to focus on top supermarkets such as The Mall Group, Central Food Retail, Villa Market, Gourmet Market and Home Fresh Mart.

“Our coffee got positive feedback from the market, so we then decided to expand our range from coffee to other products, and especially fruit juices,” he said.

The company now imports 13 food and drink products for distribution around the country, with the focus remaining on the sale of premium items.

This enabled Renova Foods to bring in revenue of about Bt10 million last year.

The company plans to boost its range from 13 products to 30 categories during the course of this year, which should make it possible to achieve growth in double digits from last year’s level, Chate said.

“The key to our success is our focus on quality products and having a marketing strategy that entails a close relationship with our customers. We also cut operating costs such as logistics and accounting by outsourcing such functions to specialists, which in turn gives us the flexibility to focus on the products and the business,” he explained.

As Renova Foods is a small company, it is vital to reduce fixed costs and focus on the key aspects of running the business – that is, products and marketing – he stressed.

“We concentrate on finding quality products to serve our target group, and also on how to distribute our products to customers. This is the main key to our success. Outsourcing other operations to cut operating costs is the way to keep our business slim and flexible, with a view to driving long-term growth,” the company founder said.

Renova Foods currently employs five people.

Thai TV blasts NBTC after licences revoked

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Thai-TV-blasts-NBTC-after-licences-revoked-30279647.html

DIGITAL TV

Pantipa Sakulchai, centre, president of Thai TV Co, along with Suchat Chomkul, left, her legal adviser, insist that the company did no wrong in relinquishing its two digital terrestrial TV licences, at a press conference yesterday to kick off their fight

Pantipa Sakulchai, centre, president of Thai TV Co, along with Suchat Chomkul, left, her legal adviser, insist that the company did no wrong in relinquishing its two digital terrestrial TV licences, at a press conference yesterday to kick off their fight

Thai TV Co yesterday came out swinging at the broadcasting regulator, saying it would not allow the NBTC to cash in its bank guarantee and would not hand over Bt1.75 billion for upfront licence fees after receiving a notice of licence revocation.

“We did no wrong in refusing to pay the remaining instalments of the upfront licence fees and annual licence fee.

“It’s the full responsibility of the National Broadcasting and Telecommunications Commission to create a digital terrestrial TV market completely safe and sound for new players,” said media veteran Pantipa “Sister Tim” Sakulchai, president of Thai TV.

To protest against this administrative order, the company has petitioned the Central Administrative Court to issue a temporary injunction.

Pantipa claimed that the NBTC had failed to marshal the transition from analog to digital TV in line with the national master plan.

The regulator also broke some of its promises to the industry, such as creating public awareness about this transition and other issues related to channel numbering and TV rating measurement, she said. The public still remained in the dark about digital TV.

Thai TV Co decided last year to return its licences to run news channel Thai TV and another channel for children and families called Loca, which was later renamed MVTV Family, after refusing to pay the Bt288-million second instalment of its upfront licence fee as well as the annual fee.

Last week, Thai TV Co received written notice of the revocation of the licences, which had been suspended for 90 days pending payment. The notice also demanded full payment of the remaining five instalments of the upfront licence fees worth Bt1.63 billion plus value-added tax as well as the unpaid annual licence fees and a daily fine of Bt60,000 within 30 days. But if Thai TV failed to respond, the bank guarantor, Bangkok Bank, should assume this responsibility.

To protest against the NBTC’s decision, Suchat Chomkul, legal adviser for Thai TV, said his company had yesterday asked the Central Administrative Court to void the NBTC’s order and issue a temporary injunction on Monday because the company would not allow the commission to claim the bank guarantee.

Suchat said the court planned to hold its first hearing on the case on Tuesday.

Thai TV has been completely blacklisted from any broadcasting activities, but Pantipa still continues to produce and supply full TV programmes to the “44 TV Pool Movie Hits” satellite TV station under a revenue-sharing agreement. She acknowledged that her son’s company Thai TV Pool was now applying for a broadcasting licence to run a new free-to-air satellite TV channel.

Thai Optical invests in product development

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Thai-Optical-invests-in-product-development-30279632.html

INVESTMENT

Thai Optical Group plans to spend Bt800 million over three years to develop innovative optical-lens products and increase its market share in the United States and in Asean countries.

Managing director Torn Pra-charktam told a press conference yesterday that for this year, the company had budgeted Bt500 million, of which Bt350 million would be used to expand production capacity for prescription lenses, which is a product that generates a good profit.

The remaining Bt150 million this year is for a 360-degree rebranding to support the company’s growth, which has been going at 10 per cent each year.

A total of Bt300 million will be spent next year and in 2018 to penetrate deeper in the US and Aseancountries, especially Indonesia, Myanmar and Vietnam.

About 95 per cent of sales go to the international market, mainly Europe, Australia, New Zealand, the US and the Asia-Pacific region.

In the Asean market, the company aims to distribute its products through joint ventures in Malaysia, Singapore and Vietnam and isstudying and negotiating more for partnerships in Indonesia, the Philippines and Myanmar.

“The company is positive that this major reorganisation and the three years ahead will push the company to be the leader of world-class independent optical-lens manufacturers and to be accepted by consumers globally who extensively use quality optical lenses,” Torn said.

“We also target our revenue to grow by double digits annually.”

The group netted Bt230 million on sales of Bt1.82 billion last year, thanks partly to the continued growth of the global optical-lens market.

There are more than 1.8 billion optical-lens users and the trend is to increase by more than 3 per cent every year.

Thai Optical Group was founded in 1991.

Today, the company has authorised capital of Bt475 million.

PTTGC sees ‘flat growth’ in 2016

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/PTTGC-sees-flat-growth-in-2016-30279630.html

OUTLOOK

PTT Global Chemical, the flagship petrochemical arm of PTT Group, expects this year’s performance to be on par with last year’s.

President and chief executive officer Supattanapong Punmeechaow said that even with the high volatility of oil prices, which shrank from US$60 a barrel to $34 last year, PTTGC could manage to book a net profit of Bt20.5 billion in 2015, up 33 per cent from 2014.

PTTGC’s performance this year is likely to be similar, though it has to keep a close watch on the movements of polyethylene prices. Nevertheless, this assumption is yet to take into account a possible gain from a cost-cutting and revenue-enhancement programme that it is to launch shortly, he said.

The company predicts oil prices at $30-40 a barrel and the spread between the prices of high-density polyethylene and naphtha to stay above $700 a tonne this year.

Supattanapong said PTT Group’s restructuring plan for its petrochemical subsidiaries would not affect PTTGC’s Map Ta Phut retrofit project, its largest domestic investment programme, which is expected to commence construction by the end of this year.

He said the restructuring plan that was initiated by PTT’s new chief executive Tevin Vongvanich was a good concept because enhancing efficiency is important during the current economic situation. However, there has been no conclusion yet on whether the streamlining plan will involve a consolidation of shareholding of petrochemical subsidiaries or will involve only more exchange of feedstock among them.

Chief financial officer Duangkamol Settanung said PTTGC was looking to sell some products from its Map Ta Phut retrofit project to PTT subsidiaries such as HMC Polymers, which could source polypropylene from PTTGC instead of SCG, while PTT Asahi Chemical could buy some C4 hydrocarbons from the firm’s new project.

The Map Ta Phut retrofit project will use 1.5 million tonnes of naphtha annually, out of the total 1.8 million tonnes that PTTGC is selling to SCG and shipping to export markets annually, to produce 500,000 tonnes of ethylene and 261,000 tonnes of propylene annually.

C4 hydrocarbons

The new project will also produce more than 100,000 tonnes of C4 hydrocarbons, which include butadiene and other chemicals. Supattanapong said PTTGC was negotiating with two or three foreign companies that have proprietary technologies to form joint ventures to produce high-value speciality chemicals from the C4.

Duangkamol said PTTGC last year booked an impairment loss of Bt2.6 billion for Myriant Corp, its 84-per-cent-owned US-based subsidiary, based on a conservative assumption that its bio-based chemical plant would be able to utilise only 40-45 per cent of its production capacity.

It is now too early to say if PTTGC will have to book additional impairment on the US assets this year, she said.

Regarding its planned $5.7-billion (Bt202 billion) US petrochemical complex, PTTGC is expected to know the construction cost by midyear, and is working with a major ethylene producer to conclude an ethane-feedstock contract by the third quarter.

PTTGC plans to issue debentures amounting to at least Bt9.7 billion this year, to match its loan repayment of the same amount this year, the CFO added.

Samsung targets B2B trade for upto 30% of its revenue

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Samsung-targets-B2B-trade-for-upto-30-of-its-reven-30279628.html

B2B

Samsung hopes to be generating 25-30 per cent of its revenue from business-to-business activity by 2020, compared with less than 10 per cent now.

David Song, senior vice president for printing solutions at Samsung Electronics, said the company aimed to focus on B2B as it was a growing market for its tablets, printing solutions, displays, medical devices, and smartphones. The company is also creating a new paradigm for cloud-based printing.

“We are already successful in the consumer market and we are moving forward and focusing on business to business. The firm expects to generate revenue from business to business at 25 per cent in 2020. We are now getting revenue from B2B at less than 10 per cent,” Song said.

He also said Thailand was an important market for Samsung since the country had potential to grow.

Anna Cho, vice president for printing solutions at Samsung Electronics, said the company had introduced two new printer series. Samsung SMART MultiXpress 3 (MX3) and SMART MultiXpress 7 (MX7) are multifunction printers designed for business.

Boonlerd Viboonkiat, vice president of Thai Samsung Electronics, said the company’s printing business this year would concentrate on the premium market. It will also focus on providing overall printing solutions rather than simply marketing standalone printers or box printers.

Nok Air moves to restore schedule

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Nok-Air-moves-to-restore-schedule-30279552.html

NOK AIR expects to restore its flight schedule in April after slashing 10-15 per cent of its flights since October because of a shortage of pilots.

It is recruiting new Thai and foreign pilots while drawing up an emergency plan and seeking collaboration with other airlines and charter operators to serve passengers until Monday.

Patee Sarasin, chief executive officer of the domestic budget carrier, said yesterday that the company had finished compensating 40 per cent of the 3,000 passengers grounded by the cancellation of nine flights caused by a pilots’ strike on Sunday.

The compensation process followed the standard of the Civil Aviation Authority of Thailand, he said.

The company has stopped investigating two of the eight pilots suspected of involvement in the work stoppage after finding that they had nothing to do with it. The investigation of five others is going on, while one has already been fired. The dismissed pilot had earlier accused Nok Air of forcing substandard captains to fly its aircraft. Patee, who has been Nok Air’s CEO for more than 12 years, argued that the airline had strictly complied with all standard practices.

The airline was going through organisational restructuring to upgrade its flight operations to the standards of the IATA (International Air Transport Association) Operational Safety Audit and the European Aviation Safety Agency.

This was part of its business plan to join with a partner in Europe to exchange flights during high and low seasons to reduce operational costs and increase revenue.

“The incident has made us delay our plan to begin the collaboration, originally scheduled for July, to early next year,” he said. Recently Sanit Kongpetch, a pilot and former manager of Nok Air’s flight standards department, who was fired in the wake of the cancellation of nine flights on Valentine’s Day, said the flights were scrubbed because of a shortage of pilots, not because of a strike.

The government has threatened to suspend or revoke Nok Air’s operating licence if the incident in which more than 1,400 passengers were stranded at Don Mueang International Airport is repeated. The Transport Ministry on Monday ordered all 14 Thai-registered carriers to submit flight-cancellation contingency plans to prevent a repeat of an incident like the one on Sunday.