Nok Air sees silver lining

Thai Airways International's refusal to subscribe to new shares of Nok Air could jeopardise THAI's fight for control over the loss-ridden budget carrier. That would be good news for Nok Air, which has been less than keen to join the flag carrier's new consolidation plan under the THAI Group concept. By rejecting Nok Air's offering of 245mnew shares, THAI's shareholding will diminish to roughly 20% from 39.25% now, thus weakening<br/>THAI's hand in Nok Air's fate, insiders said Wednesday. This implication emerged after confirmation that THAI had overturned its earlier decision to take up the share subscription offering at the 11th hour, just ahead of a Monday deadline. Transport Minister Arkhom Termpittayapaisith said that he was informed by THAI executives that the flag carrier would not subscribe to the rights offering. He said THAI remains the biggest shareholder in Nok Air, retains administrative power at the budget airline and could possibly consider buying more shares from Nok Air in the future. SET-listed Nok Air announced that it had no problem with THAI's decision to sit out the rights offering.<br/>