THAI board agenda omits aircraft acquisition plan
The board of Thai Airways International yesterday did not consider the proposed acquisition of 38 new aircraft to boost its fleet as part of its plan for 2018-2022 because of the Bt10.19-billion loss suffered last year, board chairman Amphon Kittiamphon s
Under the plan, some planes were to be purchased and some leased. However, the proposed addition of 37 new aircraft under the 2011-16 plan remains unchanged. The firm will take delivery of new and refurbished aircraft from now until 2016. That means THAI will have 50 planes ready to be pressed into service.
However, Amphon said this would not have any impact on the company’s operation. THAI will have to move forward more carefully to minimise risks after last year’s loss. The future purchase and leasing plan will be considered by the risk management committee to stabilise financial performance in the long term. At the same time, the committee will have to deal with the previous cabinet’s acquisition plan.
He said THAI had been hemmed in by many factors: rising fuel prices, global economic instability, natural disasters ranging from earthquakes and tsunamis to floods, and worldwide changes in the aviation industry. In addition, other airlines from Australia, North America and the Middle East that offer competitive services, as well as low-cost airlines, have intensified the competition. “Amid those problems, do we have a mechanism to secure our company?” he asked, adding that risk management would be key for the airline to survive in the long term.
In February, THAI carried 1.65 million passengers, an increase of 5.2 per cent over the same period last year. Cabin factor increased to 79 per cent year on year from 77.6 per cent. Important destinations on routes to Europe rose to 88.2 per cent from 82.9 per cent, Australia and New Zealand to 72.6 per cent from 66.8 per cent, and domestic routes to 82.9 per cent from 77.2 per cent. Freight load factor averaged 54.7 per cent, about 3.5 percentage points lower than the same period last year.
The board also approved the issue of debentures worth not more than Bt1.5 billion for a 12-year period, the longest tenure in the company’s history. The funds will be used for cash flow, investing in assets, or repaying debts that have a higher financing cost. The firm has appointed CIMB Thai to be its financial adviser and lead underwriter.
