Nok Air (DD, Bangkok Don Mueang) has gotten the go-ahead from the board of Thai Airways International (THAI) to pursue a new recapitalisation and business plan. The Nation newspaper reports the approval comes just days after Nok Air's CEO, Patee Sarasin, left the post.

Patee has been at the helm of Nok Air since its inception in 2004. He has been facing increasing pressure to resign amid Nok Air's financial performance, but has told The Bangkok Post that his surprise decision was a personal one.

"Let's set the record straight, this is my own idea and personal decision, not being driven by other parties," he said. "It's one of the changes being taken to refresh the organisation for a new future."

Patee will remain a director and vice chairman of the Thai budget airline.

Earlier this year, Thai declined to participate in Nok's rights offering, a decision which reduced its stake from almost 40% to 21.75%. Despite THAI choosing not to take part, the offering was oversubscribed, raising Nok's issued and paid-up share capital from THB625 million (USD18.3 million) to THB1.41 billion (USD41.2 million). The cash injection was needed after a disappointing 2016 saw a net loss of THB2.8 billion (USD81.8 million).

In August, Nok Air announced it would be going for a second share offering, planned for end-September, with experts predicting it will allow for the entry of foreign strategic partners. With Patee now out of the way, THAI seems more amenable to participating in a recapitalisation plan.

"The plan for rehabilitation and management is already clear," said Montri Jupang, THAI's Executive Vice President Corporate Strategy and Sustainability. "So it will be possible to increase capital in this round. But we have to look at our financial capabilities… and THAI is obliged to procure new aircraft in the future."