THAI To Buy 37 New Aircraft; Effect 7% Salary Increase For Staff

[webfact]

THAI to buy 37 new aircraft; effect 7% salary increase for staff

BANGKOK, Jan 15 -- Thai Airways International Public Co, Ltd (THAI) has decided to buy 37 new aircraft to replace 46 ageing planes and expand routes as part of its strategic and investment plans covering 2011-2017, while it has raised staff salaries by up to seven per cent this year, according to THAI President Piyasvasti Amranand.

Mr Piyasvasti told journalists after a board meeting Friday that THAI plans to further develop its aircraft efficiency during the seven-year period by ordering 37 new aircraft and decommissioning 46 existing aircraft with an aim to making its business more efficient in future. After the planned purchase, the national carrier will have a total of 105 aircraft from 85 at present.

Senior executives of THAI are now mapping details on the specifications of the aircraft which the airline requires. The entire process is expected to be completed next month, he said.

The board also approved paying a three-month salary bonus to its staff, which would cost the airline Bt4.25 billion, and raising staff salaries by seven per cent, costing the airline about Bt60 million monthly, he said.

The board also acknowledged at the meeting that THAI’s passenger load last December rose 1.6 per cent from the same period of 2009, up 4.1 per cent from a month ago.

THAI shares closed on Friday on the Stock Exchange of Thailand at Bt45.75, down Bt0.75 from Thursday. (MCOT online news)

-- TNA 2011-01-15

[thaicbr]

"ordering 37 new aircraft and decommissioning 46 existing aircraft with an aim to making its business more efficient in future. After the planned purchase, the national carrier will have a total of 105 aircraft from 85 at present."

I t might just be me. BUT the math seems a bit out on this article

[negreanu]

7% of nothing is not very much at all.

Thats why most of the crew (Cabin) leave for korean or JAL if they can.

Thai national pilots with a Thai licence is not so easy for them to compete in the international market.

Edited January 15, 2011 by negreanu

[BarnicaleBob]

In a few years we will be hearing about what happened to the 29 missing aircraft. 85+37=122, 122-46=76 left over in service. But it may be Thai math is a little different and 76 really equals 105 in Thailand. Or just maybe it might be the reporter is a product of the Thai education system.

[neverdie]

"ordering 37 new aircraft and decommissioning 46 existing aircraft with an aim to making its business more efficient in future. After the planned purchase, the national carrier will have a total of 105 aircraft from 85 at present."

I t might just be me. BUT the math seems a bit out on this article

I had a good laugh when reading the article & wondering how they managed to somehow cook the books to come up with those numbers.

Obviously the same guy that did those figures is the guy who does the pricing for the tickets. Everythings twice the price it should be and to counter act the decline in airfare sales they have further increased the price and cut the levels of service, on top of this they will now carry more passengers in less planes and give the staff a payrise because they're not working less hours & half as hard. <deleted>?

[chuang]

"ordering 37 new aircraft and decommissioning 46 existing aircraft with an aim to making its business more efficient in future. After the planned purchase, the national carrier will have a total of 105 aircraft from 85 at present."

I t might just be me. BUT the math seems a bit out on this article

You need to be a rocket scientist to understand it....

[powderpuff]

A plan to lose money even faster. O well always have the taxpayer to bail them out.

But Thai pride is at stake.

Edited January 15, 2011 by powderpuff

[jimbeam1]

My memories not what it was. But I seem to remember reading on T/V somewhere last year, that Thai Air was looking to cancel an order for a load of the new air buses that they had ordered. May have been that runway's were not long enough. As I said memory not what it was?

jb1

[Bagwan]

"ordering 37 new aircraft and decommissioning 46 existing aircraft with an aim to making its business more efficient in future. After the planned purchase, the national carrier will have a total of 105 aircraft from 85 at present."

I t might just be me. BUT the math seems a bit out on this article

You need to be a rocket scientist to understand it....

Did TAT do the sums? I set my 10 year old Thai niece the problem, she did the arithmetic in her head and got the right answer first time. My friends 30 year old lady who has a Master's degree in Government failed the test - twice.

[ginjag]

"ordering 37 new aircraft and decommissioning 46 existing aircraft with an aim to making its business more efficient in future. After the planned purchase, the national carrier will have a total of 105 aircraft from 85 at present."

I t might just be me. BUT the math seems a bit out on this article

You need to be a rocket scientist to understand it....

Did TAT do the sums? I set my 10 year old Thai niece the problem, she did the arithmetic in her head and got the right answer first time. My friends 30 year old lady who has a Master's degree in Government failed the test - twice.

All this talk from the new man in charge, to turn around Thai Inter., some posters said give him a chance, cause he is brilliant , with a fantastic gift for business, now this--I wonder if he has read this rubbish, surely he didn't give the person the figures to publish, TAT, ?? sounds a bit like their numbers, its a scream, everyday I enjoy T.V. sometimes I want to cry-but really it's a comedy, the news that comes out -reminds me of the "comedians on -I think ITV. u.k. years ago.

[Ricardo]

Perhaps this is partly/all a new order, but they have already placed others, which might explain the apparent mathematical snafu ? And there is the added complication of aircraft for the new LCC-subsidiary, are they included in this announcement, or not ?

Certainly Thai's P.R.-people ought to have picked-up on this apparent confusion, but perhaps they were too busy considering, what they might spend their bonuses & pay-increase on ?

And it will be interesting to see how the new aircraft will be financed, with the strong Baht it's a good time to buy outright, but with TG's delicate finances, leasing would be more likely.

[ginjag]

Perhaps this is partly/all a new order, but they have already placed others, which might explain the apparent mathematical snafu ? And there is the added complication of aircraft for the new LCC-subsidiary, are they included in this announcement, or not ?

Certainly Thai's P.R.-people ought to have picked-up on this apparent confusion, but perhaps they were too busy considering, what they might spend their bonuses & pay-increase on ?

And it will be interesting to see how the new aircraft will be financed, with the strong Baht it's a good time to buy outright, but with TG's delicate finances, leasing would be more likely.

Thai inter-have a newish aircraft on lease, from an Indian airline, a 777 e.r. that says a lot, and they are strapped for cash.?? but want to start a second budget airline, Is this greed again??............

[asiawatcher]

"ordering 37 new aircraft and decommissioning 46 existing aircraft with an aim to making its business more efficient in future. After the planned purchase, the national carrier will have a total of 105 aircraft from 85 at present."

I t might just be me. BUT the math seems a bit out on this article

I had a good laugh when reading the article & wondering how they managed to somehow cook the books to come up with those numbers.

Obviously the same guy that did those figures is the guy who does the pricing for the tickets. Everythings twice the price it should be and to counter act the decline in airfare sales they have further increased the price and cut the levels of service, on top of this they will now carry more passengers in less planes and give the staff a payrise because they're not working less hours & half as hard. <deleted>?

Could not be more correct.

[jillwilliams999]

It is about time THAI upgrade their fleet. I last flew from LHR last year on a 747 with NO personal entertainment set on every seat. I was flying eco.

[MaiChai]

I thought ThaiAir were strapped for cash? Wasn't there a story about this some months back? Funny how they can turn the business round so quickly and decide to buy new jets, or is it the case that they have to remain competitive with new planes/inflight entertainment or spiral further into a 3rd world airline? Alot of face loss here?

[mkawish]

Common, you guys

I thought it is a well known fact amongst us all....

the payout commission is a whooping 15% of the sale price.....

figure that out how much would that be for the person or persons or group....

that is the Thai way....

even the Thai ministers agree to that.... and several would be willing to accept even more.... if or when offered...

some infrastructure transactions would give out even 30% commissions.... or more....

ask the 'tuxsin' associates....

[EnSvenskTiger]

About a year ago I read, BKK post if I recal corrctly, that only 50% of the employees of THAI had a real jobb, the rest had "only" the pay check!

Is this still the same? Nepotism at its best if its tru.

Tiger

[Chunky1]

I like THAI. The stewardesses always hit on me.

[rheinwiese]

I thought ThaiAir were strapped for cash? Wasn't there a story about this some months back? Funny how they can turn the business round so quickly and decide to buy new jets, or is it the case that they have to remain competitive with new planes/inflight entertainment or spiral further into a 3rd world airline? Alot of face loss here?

Actually TG will not buy these aircraft.

They will be leased from an aircraft leasing company like e.g. ILFC.

Common practice in aviation.

[Ricardo]

I thought ThaiAir were strapped for cash? Wasn't there a story about this some months back? Funny how they can turn the business round so quickly and decide to buy new jets, or is it the case that they have to remain competitive with new planes/inflight entertainment or spiral further into a 3rd world airline? Alot of face loss here?

Actually TG will not buy these aircraft.

They will be leased from an aircraft leasing company like e.g. ILFC.

Common practice in aviation.

Not surprised that TG are currently sometimes leasing, since their A380s are (like everyone else's) going to be delivered late, and the A340s not being used as-originally-planned on BKK-JFK ? So their needs & fleet are mis-matched short-term.

It's good that they are addressing the problem of an ageing less-efficient fleet, they had allowed things to slide over the past decade, and are becoming less-competitive, just as the LCCs & Gulf-based airlines are becoming a growing threat to the local legacy-carriers.

Many airlines nowadays go via an aircraft leasing company, which avoids the up-front cost of buying the aircraft/engines, but then any potential future capital-gain will belong to the lessor & not the operating-airline. My point was that the Baht is currently strong, and buying themselves would cost fewer Baht, than it would have a few years ago.

[ginjag]

I like THAI. The stewardesses always hit on me.

Stewardesses are "" chubby chasers"" Chunky !! :lol: :bah:

[jayjay0]

I thought ThaiAir were strapped for cash? Wasn't there a story about this some months back? Funny how they can turn the business round so quickly and decide to buy new jets, or is it the case that they have to remain competitive with new planes/inflight entertainment or spiral further into a 3rd world airline? Alot of face loss here?

Actually TG will not buy these aircraft.

They will be leased from an aircraft leasing company like e.g. ILFC.

Common practice in aviation.

Well there goes the 15 to 35% kick back theroy.

What you say makes sense however I will repost part of the article.

BANGKOK, Jan 15 -- Thai Airways International Public Co, Ltd (THAI) has decided to buy 37 new aircraft to replace 46 ageing planes and expand routes as part of its strategic and investment plans covering 2011-2017, while it has raised staff salaries by up to seven per cent this year, according to THAI President Piyasvasti Amranand.

It says buy is this just another mistake in there usually inept attempt at journalism

The last company I worked for leased all of there vehicles from a leasing company that they owned. so who owns the leasing company.

Is it completely separate from Thai air with no ties other than a leasing contract.

[neverdie]

I like THAI. The stewardesses always hit on me.

Should that actually read, "I like Thai. The stewards always hit me."

Chunky, thats not something to be proud of.

[bangon04]

It is about time THAI upgrade their fleet. I last flew from LHR last year on a 747 with NO personal entertainment set on every seat. I was flying eco.

You're joking right?

The 747s they use on the LHR route have the old-fashioned screen projectors in the eco cabin, and you are lucky if they even work most of the time. Even if the headphone socket in the armrest is not broken.

Actually it can be a blessing in disguise, as the other day it was not working, and I was unable to watch that boring movie about the Zuckerberg thing, also slept through the usual TAT drivel about OTOP and the praising the royal family documentary. In fact I got a good sleep, as soon as i heard the words "Your safety is..................................our priority." That THAI captain on the movie must be dead by now....

[MaiChai]

^^^^

I believe I read somewhere that the BKK-LHR 747s are to be replaced by the 380s, but the delivery of these are delayed. Thus why they have not upgraded the inflight, etc, on these planes. However, it also means I won't fly this route with them because no inflight entertainment AND high prices AND the service is pretty average. When the 380s arrive I will reconsider, but their prices also need to be competitive.

Edited January 16, 2011 by MaiChai