Nok Air chief executive Patee Sarasin has expressed confidence he will defy the rumours and be kept in his position following the overhaul of Thai Airways International's (THAI) aviation strategy to be mulled on Tuesday by its board.
The THAI board will consider major changes Tuesday by forming the so-called THAI Group to control management and strategy of three airlines - THAI and its two budget airline subsidiaries, Nok Air and THAI Smile.
This is to make sure the three carriers work in the right direction.
There have been reports that executives of THAI, Nok Air's major shareholder, are unhappy with the budget airline's management.
A THAI source said Mr Patee may be removed following the overhaul amid fierce competition in the industry.
Despite being a major shareholder of Nok Air, THAI has been unable to supervise the budget airline and its directives have been ignored by Nok Air executives, the source said.
Mr Patee said he had not been notified by THAI executives to leave his post.
Referring to the loss-making operations of Nok Air, Mr Patee said he would find ways to better manage the airline and was ready to implement policy delivered by THAI.
"I am confident there is no problem which could affect my position," said Mr Patee. "Today I want to say THAI also asked me to help further the work. Our executives remain the same. But I would also ask THAI not to bring politics into this."
Transport Minister Arkhom Termpittayapaisith said THAI would draw the management of the three airlines - THAI, its wholly owned regional airline THAI Smile as well as Nok Air, which is 39%-owned by THAI - closer.
However, he said the market segments of the three airlines must be clearly divided.
Mr Arkhom said THAI and THAI Smile already work closely together and from now on THAI would monitor Nok Air.
Mr Arkhom said the loss-making THAI is undergoing a rehabilitation programme and the national carrier has become stronger.
The company now need to look to its affiliated airlines to map out a joint marketing plan, he added.
Tassapon Bijleveld, Thai AirAsia chief executive officer, welcomed the strategic change of THAI and its budget airlines which he said could benefit the industry.
The overhaul of THAI is in line with the policy of Deputy Prime Minister Somkid Jatusripitak, who earlier said the three airlines must work collaboratively on flight routes amid fierce competition in the industry.
The source said under the plan, the market segments for the three airlines would be separated to ensure they would not compete among themselves.
THAI will focus on the premium market, while THAI Smile will concentrate on the middle market for routes leading to neighbouring and regional countries.
Nok Air, the source said, must undergo a major improvement to be ready to compete in the low-cost airline market.
The source said although THAI representatives sit on Nok Air's board, their directives have failed to get a response from Nok Air executives.