THAI to seek Cabinet approval for acquiring 38 new planes

[webfact]

THAI to seek Cabinet approval  for acquiring 38 new planes

By THE NATION 

 

 

THAI AIRWAYS International Plc (THAI) expects to this month propose to the Cabinet its project to procure 38 new aircraft at a total cost of about Bt156 billion.

 

The procurement plan has already been forwarded by the National Economic and Social Development Board (NESDB) to the Ministry of Transport, THAI president Sumeth Damrongchaitham, said. The ministry in turn is expected to propose the matter to the office of secretary-general of the Cabinet within this week and then to the Cabinet within this month.

 

The procurement would be in two phases. About 25 new aircraft will be purchased in the first phase and 13 in the second phase. Of the total, 31 new aircraft would be used to replace older planes that will be gradually decommissioned over the next 10 years, while the remaining seven planes will be assigned to new routes in the future.

 

Meanwhile, THAI is planning to open the Bangkok-Sendai (Japan) route this November, due to Japan’s growing popularity as a destination for Thai people.

 

Recently, Manchester airport, the UK’s fourth busiest airport by passenger traffic, met officials from THAI about increasing direct flights. Thai tourists have been travelling to the north of the United Kingdom, but experience some difficulty in obtaining visas to the country, said Sumeth. The airport authority will seek solutions to the visa-approval problem.

 

In regard to a solution to the Rolls-Royce engine problems that have affected six to seven of the airline’s planes, THAI is now negotiating with the British jet engine manufacturer for compensation.

 

The airline has hedged against global oil price fluctuations and has adjusted its ticket prices to reflect actual costs.

 

But the Thai flagship airline has taken a cautious approach to adjusting ticket prices, given the high competition, and it believes now is not the right time to raise ticket prices. Sumeth, who is also chairman of Thai Smile Airways, said he has assigned both companies to connect their policies, merge administrative centres for cost reduction and have separate service and aviation sections without reducing staff.

 

“Merging the centres will allow connectivity of overseas routes of Thai Smile and THAI, to facilitate passengers’ transits in the country and abroad. Thai Smile is expected to have satisfactory performance at the end of this year, thanks to new cost management and resource sharing,” Sumeth said.

 

Meanwhile, THAI has reported total revenue of Bt200.58 billion, and a net loss of Bt11.62 billion for 2018 year-end, higher than its Bt2.10 billion net loss in 2017.

 

Source: http://www.nationmultimedia.com/detail/Corporate/30368999

 

-- © Copyright The Nation 2019-05-08

Follow Thaivisa on LINE for breaking Thailand news and visa info

[ezzra]

I hear those Boeing 737 Max-8 are going cheap now... why is it every time you read about Thai, they buy new planes? not a couple of them mind you, but dozens of them at the time and yet, they have been losing money year after year...

[RJRS1301]

Regarding their ticket prices not being increased ,seems that lowering the free baggage limit to 20 kg, and the fact they are the most expensive fares into Australia while food quality and service has dropped, they made a wise decision.

[RJRS1301]

15 minutes ago, ezzra said:

I hear those Boeing 737 Max-8 are going cheap now... why is it every time you read about Thai, they buy new planes? not a couple of them mind you, but dozens of them at the time and yet, they have been losing money year after year...

Allows them to get better price perhaps

[mok199]

If all else fails , to be used in the war against air pollution...

[RJRS1301]

15 minutes ago, mok199 said:

If all else fails , to be used in the war against air pollution...

While burning fossil fuel??

[Puchaiyank]

Anticipating more direct flights to China and India?

[jaiyen]

1 hour ago, RJRS1301 said:

Regarding their ticket prices not being increased ,seems that lowering the free baggage limit to 20 kg, and the fact they are the most expensive fares into Australia while food quality and service has dropped, they made a wise decision.

Flying from Perth Air Asia are more expensive and takes much longer.  Thai are always the most efficient airline from here. and cheap if you go to the right travel agent (AM Holiday Travel).   Convenient take off times and less than 7 hours. Don't care about the drop in food quality on a short flight.  Shame we have lost the 787 and got noisy A330 back for good.

[bluejets]

2 hours ago, RJRS1301 said:

Regarding their ticket prices not being increased ,seems that lowering the free baggage limit to 20 kg, and the fact they are the most expensive fares into Australia while food quality and service has dropped, they made a wise decision.

Brisbane flight cost is about $100 more than Sydney now.

Asked the Brisbane office about why, given the route length is shorter, but they had no comment except that's they way it is.

Also flights in and out of Brisbane now down to 4 per week.

Takes a bit of shuffling on departure/arrival days to get the full 30 days in Thailand.

As far as being expensive, 2008 cost me almost double. 

Also does not seem to be any other that comes close given direct flight.

Edited May 8, 2019 by bluejets

[RJRS1301]

9 minutes ago, bluejets said:

Brisbane flight cost is about $100 more than Sydney now.

Asked the Brisbane office about why, given the route length is shorter, but they had no comment except that's they way it is.

Also flights in and out of Brisbane now down to 4 per week.

Takes a bit of shuffling on departure/arrival days to get the full 30 days in Thailand.

Yes all the flights I have travelled on with recently since they went back to four days have been full capacity BKK to BNE, and almost impossible to get a business seat as shorter notice.

They also took the 787 off the run, and do not give choice of flight times anymore (day or evening)

Edited May 8, 2019 by RJRS1301

[RotBenz8888]

4 hours ago, webfact said:

THAI to seek Cabinet approval  for acquiring 38 new planes

Big Pig's order, planes needed to send home all the overstayers.

[30la]

Who pays for these planes? Thai Airways is losing billions ...

[RJRS1301]

1 minute ago, 30la said:

Who pays for these planes? Thai Airways is losing billions ...

It is the government flag carrier, so the taxpayers

 

[PatOngo]

8 minutes ago, 30la said:

Who pays for these planes? Thai Airways is losing billions ...

….while some line their pockets from the purchase.

[mikebell]

4 hours ago, webfact said:

a total cost of about Bt156 billion.

A nice fat commission for the cabinet yes voters.

[Srikcir]

19 minutes ago, 30la said:

Who pays for these planes? Thai Airways is losing billions ...

It's shareholders of which the Thai government through the Ministry of Finance owns 51%. That's why the airlines must get Cabinet approval to purchase more aircraft - the government has majority control of the airlines.

For the minority shareholders this purchase means more debt that must be paid from revenues for an airline suffering from annual net losses. That in turn means no dividends and stock depreciation.

[ThaiBunny]

3 hours ago, RJRS1301 said:

Regarding their ticket prices not being increased ,seems that lowering the free baggage limit to 20 kg, and the fact they are the most expensive fares into Australia while food quality and service has dropped, they made a wise decision.

Not only that - one flight per day into the busiest city with the largest Thai ex-pat population (Sydney) on their most clapped-out aircraft, the 747.  Mind you, Emirates is dropping their direct service and Qantas only has a single flight a day too.  Not sure how TG justifies two A350 flights most days into Melbourne

[Searat7]

No mention of the large number of “stored planes” including the infamous A 340’s. If anyone is interested check out airfleets.net

[worgeordie]

I hope they choose the type of planes carefully,in the past 

they had too many different planes,which they had to keep

spares for,and train pilots to fly the different planes,which

i think were bought on who was giving the best  commissions,

and not on the best suitability for the airline.

 

regards worgeordie

[Srikcir]

5 hours ago, webfact said:

Meanwhile, THAI has reported total revenue of Bt200.58 billion, and a net loss of Bt11.62 billion for 2018 year-end, higher than its Bt2.10 billion net loss in 2017.

The airline began a self-described transformation in early 2015 to “stop [the] bleeding” and in 2016 instituted the second phase of its transformation plan concentrating on “proactive revenue boost, effective cost reduction, capability enhancement and service excellence provision,”

It had posted posted a net profit of THB46.8 million ($1.3 million) for 2016, a turnaround from the airline’s THB13 billion net loss in 2015. https://atwonline.com/airline-financials/thai-airways-reverses-losses-posts-13-million-2016-net-profit

 

In summary THAI's net profit (rounded):

2015 THB 13,000 million loss

2016 THB       47 million gain

2017 THB   2,000 million loss

2018 THB  12,000 million loss

 

THAI is a financially failed enterprise by its own goals and the Thai government has no justification to continue investing it it on behalf of the Thai taxpayers. With the currently high value baht the government should sell its stake in THAI and better use the proceeds for social programs that it claims cannot fully fund such as welfare and healthcare.

 

[Lemonltr]

Why is Thai Airways rushing before the new government is in power? Hopefully not because  China's Comac builds a cheap 190 seat plane and has 300 and 400 seat versions being developed. 

[hotchilli]

3 hours ago, Puchaiyank said:

Anticipating more direct flights to China and India?

A better choice:

 

[Sydebolle]

Before TG buys a lot of equipment again (for the sake of the little commissions in those brown Manila envelopes) it might be an idea to consider cleaning up their network, to operate the latter with a certain stability and reliability, spend some money on training ground staff and cabin crew.

Once all this is done carry on the good work and clean up the mess between TG and WE (Thai Smile) and dont have fare variations of more than 200% (BKK-KKC springs to mind).

As the majority is government-owned (which explains why this club of bankrupt crooks is still airborne) clean up the allocation of airlines and airports and operate fair play. 

Better start now rather than later as the revenue passengers (and I am not talking of those converted cargo freighters winging in tons and tons of cheap Chinese) have the choice and they switched away from TG. A statement of an acquaintance was "book anything except TG" - now that takes quite some work, don't you think so?

Want real changes and returning prosperity of the national airline (to the level it had prior to 1992)? Get the majority of shares into the free stock market and ensure that not a single board member is related to the government nor has a criminal record. 

[geoffbezoz]

Never mind about the loss making Thai Airways.  Never mind about the deplorable customer service. Never mind about the massive freebie flights by the executives. Never mind about jobs for the ex military.

 

Sorry the last point is not fair, as it really is ensuring that the incompetent ex military appointed to the Thai airways board get massive kick-backs from a massive order of 38 planes all condoned by the government cronies to rubber stamp the deal.

 

But finally, never mind about the Thai taxpayer who will foot the bill for this mismanagement, graft facilitation and further tarnish on Thai Airways. An airline that was once a pleasure to fly with.

[Srikcir]

46 minutes ago, Sydebolle said:

ensure that not a single board member is related to the government

Some Board of Director government connections:

• Chairman Ekniti Nitithanprapas on the board of IRPC Public Co., Ltd. subsidiary of state-owned PTT Public Company Limited and Chairman for National Credit Bureau Co. Ltd. with 21% shares held by government financial institutes and Director General at Thailand Ministry of Finance.
• Independent Director Distat Hotrakitya is Secretary for Thailand Office of The Council of State under the Prime Minister, state-owned Electricity Generating Authority of Thailand and Office of Knowledge Management & Development that reports to the Office of the Prime Minister.
• Independent Director Vachara Tuntariyanond who is also a Commission Member-Finance at Insurance Commission in the Ministry of Commerce.
• Vice Chairman Treetod Sonjance is also Member of National Council For Peace & Order and Member of National Legislative Assembly. !!!

 https://quotes.wsj.com/TH/THAI/company-people

[Jane Dough]

I've been very happy recently with "A-Go-Go" airlines. 

 

Even their new "wide body" fleet.

 

Rooster

[White Christmas13]

4 hours ago, jaiyen said:

Flying from Perth Air Asia are more expensive and takes much longer.  Thai are always the most efficient airline from here. and cheap if you go to the right travel agent (AM Holiday Travel).   Convenient take off times and less than 7 hours. Don't care about the drop in food quality on a short flight.  Shame we have lost the 787 and got noisy A330 back for good.

Correct Thai is the only one flying direct to Bangkok and return and

is only about $100 more than the cheapest one witch takes forever

and on the budget airlines you have to pay extra for every thing at the

end of the day Thai is very competitive ( in my case to Perth)

[PETERTHEEATER]

6 hours ago, PatOngo said:

….while some line their pockets from the purchase.

Ooh! Go wash out your mouth.....????

[RJRS1301]

2 hours ago, White Christmas13 said:

Correct Thai is the only one flying direct to Bangkok and return and

is only about $100 more than the cheapest one witch takes forever

and on the budget airlines you have to pay extra for every thing at the

end of the day Thai is very competitive ( in my case to Perth)

The so called budget airlines, by the time you pay for luggage,(nasty) food, water, blankets. you are better off with the full(poor service) of Thai or a one stop QF or SG flight, and a relatively comfortable seat

[White Christmas13]

2 hours ago, RJRS1301 said:

The so called budget airlines, by the time you pay for luggage,(nasty) food, water, blankets. you are better off with the full(poor service) of Thai or a one stop QF or SG flight, and a relatively comfortable seat

Yes but unfortunately only Thai fly's direct from Perth to Bangkok 

so I can't choose any of the other ones Qantas or Singapore do not 

fly direct always one stop in Singapore or KL if I fly with Malaysian

airlines

Edited May 8, 2019 by White Christmas13