Shareholders of Nok Air Plc on Thursday approved a capital injection plan for NokScoot Airlines for fleet and service expansion.
Nok Air chairman Prasert Bunsumpun said the shareholders meeting gave the SET-listed firm the green light to invest an additional 490 million baht in its joint venture with Scoot Pte Ltd of Singapore.
Nok Air's stake in NokScoot, a medium-to-long-haul low-cost carrier, will remain at 49% after the capital increase.
Nok Air and Singapore-based Scoot set up the joint venture in 2014.
NokScoot needs fresh funds to expand the fleet and routes from its base at Don Mueang airport to destinations in East Asia and the subcontinent.
KTB Securities (Thailand) Plc, a financial adviser to Nok Air on the capital increase plan, said the decision on Thursday will give NokScoot more business opportunities to achieve its goals.
NokScoot flies to five cities in China, Taipei and Tokyo. Osaka will be its second Japanese destination when the service starts on Oct 28.
The news had no impact on Nok Air shares (NOK) in the Stock Exchange of Thailand. NOK closed unchanged at 2.80 baht.