Thai Airways to take funding review for fleet-expansion plans

[snoop1130]

Thai Airways to take funding review for fleet-expansion plans

 

FILE PHOTO: Workers service a Thai Airways Airbus A380-800 aircraft at Bangkok International Suvarnabhumi Airport, Thailand September 3, 2019. REUTERS/Amr Abdallah Dalsh

 

BANGKOK (Reuters) - Thai Airways International Pcl <THAI.BK> said on Wednesday it was reviewing its fleet-expansion plans to procure 38 new planes, as it considered funding sources, nearly two years after it announced the order.

 

The review will take six months, the airline said.

 

"The board resolved that management revise assumptions in the aircraft procurement program so that it aligns with the rapidly changing aviation industry," the company said in a statement.

 

Thai Airways announced plans to procure new jets in February, 2018. Last October, Thai Airways said it was considering the purchase of Airbus SE <AIR.PA> A350s or Boeing Co <BA.N 777X> jets as part of a plan to renew its widebody fleet.

 

But these plans, a mix of buying and leasing jets, have since been reviewed and sent back by the government.

 

As a state-owned company, Thai Airways is under the purview of the transport and finance ministries, and needs approval on certain decisions, including the big procurement plans, from the state-planning agency, slowing down decision making.

 

The airline's management will also consider sources of funds so that it aligns with the company's position and present plans to the board within six months, the company added.

 

The review of its procurement plans comes as Thai airlines face mounting losses on weak tourism growth and intensifying competition from budget carriers.

 

Thai Airway's losses more than doubled in the April-June period to 6.9 billion baht ($225.64 million) against 3.1 billion baht from the same period a year earlier.

 

Earlier this year it cancelled flights to Europe due the closure of Pakistani airspace, stranding thousands of passengers.

 

-- © Copyright Reuters 2019-09-25

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[Fex Bluse]

1 hour ago, snoop1130 said:

 

"The board resolved that management revise assumptions in the aircraft procurement program so that it aligns with the rapidly changing aviation industry," the company said in a statement.

Said another way, 

 

"

The state is insolvent,

 

can't pay the tens of billions of Baht we owe to Hopewell,

 

tourists won't come,

 

the expats are leaving,

 

the Japanese are suggesting they might leave,

 

and nobody believes we have the skilled workforce for the EEC

"

[Cadbury]

1 hour ago, snoop1130 said:

The review will take six months, the airline said.

Only six months. Can't rush these things.

Undoubtedly Rolls Royce are the preferred engine suppliers. Ssssh!

[mok199]

Are we there yet ?

[webfact]

THAI board balks at hefty acquisition plan

By THE NATION

 

Thaworn

 

Thai Airways International (THAI) directors on Tuesday (September 24) asked executives of the national carrier to review plans to procure 38 more aircraft worth a combined Bt156 billion.

 

The board cited a “fast-changing situation” in asking for a fresh plan within the next six months, THAI president Sumeth Damrongchaitham said.

 

Board members noted the airline’s poor financial performance and tough competition, coupled with the baht’s appreciation, Sumeth said.

He insisted that THAI must acquire new aircraft, but it would revise the methodology used.

 

Deputy Transport Minister Thaworn Senniam said the board’s request was not politically motivated or a matter of political interference.

 

Source: https://www.nationthailand.com/business/30376729

 

-- © Copyright The Nation Thailand 2019-09-26

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[miamiman123]

“The board said that management should revise assumptions....in line with rapidly changing aviation industry”

what does that mean?

we don’t have the funds to do this?

 

[yellowboat]

They should be talking about profitability with the fleet they have.  Honestly, I flew them a lot before 2008.  Now, they do not even cross my mind.  The airline is only relevant to those sucking it dry, not to the traveling public. 

[RichardColeman]

12 hours ago, snoop1130 said:

But these plans, a mix of buying and leasing jets, have since been reviewed and sent back by the government.

Dear Sir, Please restructure purchase of your planes to accommodate recent purchase of important Army helicopters 

[Stargeezr]

I wonder if Thai Air is a bit like Air Canada. Air Canada used to say that they were

losing millions each year, and what they did lose was diddly, as it was projected

earnings that they lost, not actual money. Forecast to earn 5 billion in a year but

only made 2 billion would equal a 3 billion loss, right?  I never believe much in

Air line losses, well I guess Thomas Cook is a different case...

Geezer

[Teacherduck]

This board is so bad, you have to laugh. Any board that sits over a huge loss like that would be sacked years ago. Privatize the airline, put business people in charge and get rid of the puppets. This is more corrupt than the rice subsidizing scheme ever was and yet no criminal charges.

You can't charge a mate who gives you a free ticket, can you?

I am flying Thai tomorrow, will be interesting to see what the service is like?

[mercman24]

dont seem to have any business plan to slow down the billions they are losing every month, (well they did ask execs to take a pay cut) that will work. costing this country billions , money just going down the drain, need to pull the plug on this one, forget about prestige.as said before i flew with them often years ago, too expensive now.

[Darkside Gray]

Bankrupt and looking to expand it fleet, Should be sacking the board and getting competent people running it similar to Emirates and Qatar

[Dice Man]

54 minutes ago, Teacherduck said:

This board is so bad, you have to laugh. Any board that sits over a huge loss like that would be sacked years ago. Privatize the airline, put business people in charge and get rid of the puppets. This is more corrupt than the rice subsidizing scheme ever was and yet no criminal charges.

You can't charge a mate who gives you a free ticket, can you?

I am flying Thai tomorrow, will be interesting to see what the service is like?

For me and my Family from OZ and Uk the service has always been good....

[mikebell]

5 hours ago, webfact said:

coupled with the baht’s appreciation,

They should get a good price for the planes if buying with baht.

[hotchilli]

2 hours ago, miamiman123 said:

“The board said that management should revise assumptions....in line with rapidly changing aviation industry”

what does that mean?

we don’t have the funds to do this?

 

It means that after all the prolonged talking is over the playing field has changed yet again.... one thing the aviation industry doesn't do is stand still... waiting for others to jump on board!

 

[konbit]

51 minutes ago, Darkside Gray said:

Bankrupt and looking to expand it fleet, Should be sacking the board and getting competent people running it similar to Emirates and Qatar

Qatar lost like a billion USD in the last year. 

[Sydebolle]

Look, if I open a Thai restaurant in Europe - chances are, that I hire a Thai cook as there is most likely nobody more qualified for that task.

Same with an airline, hire an expert, irrespective of nationality and gender - quite obviously the airline went South since 1992, after Chatichai Boonya-ananda was „retired“. I‘ve seen Thai aircraft (B747-800 and A340) all over the place, as restaurants and show objects and playgrounds from Nong Khai via Bangkok to Banglamung. Overseas rotting places of Thai planes (B747-800) can be seen in the boneyard of Mojawe. Zillions of Baht went up in fleet „planning“ and yet, the airline is carp! 

A normal ticket for a passenger on the Bangkok-Udon run costs B 2‘090 (TG); the competition flies for B 590 (SL) - difference is the 20kgs luggage.