Thai AirAsia says it will not buy shares in Nok Air
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Asia Aviation, majority shareholder of budget airline Thai AirAsia, said on Wednesday that it would not proceed with an acquisition of shares in rival carrier Nok Airlines, sending Nok’s shares down.
Nok’s shares fell more than 12% and Asia Aviation’s prices slid nearly 3% in the morning trading session.
Asia Aviation said in February that it was in talks to buy Nok shares, although Nok had said at the time that it was “not aware of any details in this respect”.
Nok is 53% owned by the Jurangkool family, which also controls Thai Steel Cable PCL and unlisted auto parts maker Thai Summit.
Intense competition among budget airlines has led to quarterly losses since 2015 for Nok.
Asia Aviation owns 55% of Thai AirAsia, with the remainder held by Malaysia’s AirAsia Group Bhd.
Questions & Answers
Q.What is the relationship between Asia Aviation and Thai AirAsia?
What is the relationship between Asia Aviation and Thai AirAsia?
Asia Aviation is the majority shareholder of Thai AirAsia, holding 55% of the budget airline. The remaining shares of Thai AirAsia are owned by Malaysia's AirAsia Group Bhd.
Q.Who are the principal owners of Nok Air?
Who are the principal owners of Nok Air?
Nok Air is 53% owned by the Jurangkool family. This family also has control over other businesses, including Thai Steel Cable PCL and the unlisted auto parts manufacturer Thai Summit.
Q.How has the market reacted to Asia Aviation's decision regarding Nok Air shares?
How has the market reacted to Asia Aviation's decision regarding Nok Air shares?
Nok Air's shares fell by over 12% following the announcement. Asia Aviation's share price also slid by nearly 3% during the morning trading session on Wednesday.
Q.Why has Nok Air been experiencing financial difficulties recently?
Why has Nok Air been experiencing financial difficulties recently?
Nok Air has faced quarterly losses since 2015. This financial struggle is primarily attributed to the intense competition prevalent among budget airlines in the market.
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