NewGen Airways (Bangkok Don Mueang) chief executive Jarurnpong Sornprasit has confirmed the Thai scheduled charter specialist has deferred plans to go public by two years.
Speaking to The Bangkok Post this week, Jarurnpong said the offering, which was originally slated for the last quarter of this year, will likely occur during the first half of 2019.
The justification given is that NewGen Airways failed to post a profit in 2016 whereas Thai listing rules require an entity to record two years of consecutive profits or revenue above THB5 billion baht (USD151 million). As such, NewGen is oncourse to register revenue inflows of THB8 billion (USD241.5 million) this year, compared to THB4.5 billion baht in 2016, given strong demand for travel in the China-Thailand market.
Founded in 2013, NewGen Airways is a 51/49 joint venture between a Thai MRO firm and two Chinese tour operators. Using a fleet of four B737-400s and eight B737-800s, NewGen Airways currently focuses on connecting multiple Chinese cities with each of Bangkok Don Mueang, Krabi, and Phuket in Thailand. Over the next several years, NewGen will add four new aircraft to its fleet per year in a bid to expand its international market coverage.
With that in mind, having secured its renewed Air Operator's Certificate (AOC) from the Civil Aviation AUthority of Thailand (CAAT) last month, NewGen is looking to add Taiwan, Myanmar, and India to its network. Myanmar will likely be the first foreign nation to be tapped with a new service launch set for October.
In terms of its local operations, Jarurnpong said NewGen is looking to set up a base at Bangkok Suvarnabhumi airport, but it does not have enough aircraft to do so. Similar capacity shortages have affected plans to develop bases at Chiang Mai and Chiang Rai.
