Not all 45 new planes acquired will be bought, says THAI CEO
Thai Airways International (THAI) will go ahead with acquiring 45 new planes to replace decommissioned ones, but not all of them will be purchased.
THAI CEO Chai Eamsiri said this on Wednesday in response to concerns raised by Transport Minister Suriya Juangroongruangkit.
The minister had said on Tuesday that it might not be very wise for the national carrier to invest in 45 new planes for now.
Chai responded by saying that the plan to acquire 45 new aircraft was part of the company’s rehabilitation plan that had already been approved by the bankruptcy court.
He added that the new fleet will be acquired in a proper ratio of leasing and hire-purchase contracts.
Chai said the final details of the acquisition plan will be announced at the Singapore Airshow, which runs from February 20 to 25.
Dismissing Suriya’s concerns that the acquisition of a new fleet would affect the carrier’s financial status, Chai insisted that it was necessary to replenish THAI’s fleet so it is on par with the number of planes in 2013. THAI also plans to boost its market ratio at Suvarnabhumi International Airport, which fell from 51.3% to just 27% last year.
Chai explained that in 2013, THAI had 100 planes in operation but after the airline industry came to a standstill due to Covid-19 and after the company entered its rehabilitation programme, its decommissioned planes had aged and maintaining them was not worth it.
By the end of 2022, THAI only had 64 planes in operation, marking a 35% drop from 2013, he said.
To overcome this shortage, the airline began leasing planes during 2022 and 2023. It leased 21 wide-body aircraft, which began arriving in the second quarter of 2023. Most of these planes were Airbus 350 with Trent XWB engines from Rolls-Royce.
Chai said THAI will start leasing narrow-bodied Airbus 321 Neo in the fourth quarter of 2025.
The leasing of planes increased THAI’s fleet to 70 last year, which is expected to rise to 79 this year and 90 next year, Chai added.
He said that since some leasing contracts are set to expire and more aged plans will be decommissioned, THAI’s fleet will be reduced to just 51 planes by 2033, dropping 49% compared to 2013.
Hence, he said, THAI needs to acquire 45 planes to increase its fleet to 96 in 2033 and meet its plan to increase the market ratio, Chai said.
