Nok Air has received shareholder approval to raise 1.5 billion baht in fresh capital to support its revival efforts.
The SET-listed struggling budget airline seeks the capital injection through the issuance of up to 625 million ordinary shares, proportionate to existing shareholdings.
The airline already secured commitments from its two largest shareholders -- Thai Airways International (THAI) and businessman Nuttapol Jurangkool, which hold 39.2% and 12.1%, respectively -- for the capital boost.
Nok Air chief executive Patee Sarasin told the Bangkok Post other shareholders, including himself, are expected to subscribe to the new share issuance. Flag carrier THAI is ready to chip in 600 million baht in the exercise. Nok Air has paid-up capital of 650 million, said Mr Patee.
"The money will go a long way to allow us to return to the black over the next two years," he said.
Mr Patee confirmed he will remain the airline's chief executive and does not feel pressured by parties to step down, following media speculation last week.
On the contrary, he received moral support during the last annual general meeting of Nok Air shareholders to soldier on as the leader, he said.
Earlier press reports hinted that removing Mr Patee was part of THAI's new strategy for its two affiliated airlines -- Nok Air and its wholly owned THAI Smile -- to create joint management with the flag carrier through a THAI Group.
On April 19 the THAI board of directors endorsed the creation of the THAI Group. Management of the three airlines will meet later this month to create a framework for cooperation.
Flt Lt Montree Jumrieng, THAI's executive vice-president for corporate strategy and sustainable development, told reporters last week the cooperation would include flight routes and shared resources, such as marketing campaigns, ground services, parking bays, and aircraft maintenance services.
Narongchai Wongthanavimok, a Nok Air board member, said the airline is set to hire consultancy firms to work out a rehabilitation plan, which is expected to be finalised in three months.