On 17 October 2000, Thai Airways International Public Company Limited submitted the State Enterprise Long-Term Plan 1999/2000-2004/05 to the Cabinet for approval. The plan includes acquisition of five new aircraft.
According to THAI`s President, Mr. Bhisit Kuslasayanon, THAI`s Board of Directors agreed in principle to the State Enterprise Long-Term Plan 1999/2000-2004/05 on 25th May, 2000. THAI`s Long-Term Plan covers the airline`s operations and investments for the next five years by placing special emphasis on promoting commercial aspects of operations. THAI aims to strengthen its revenue-generating potential, develop and maintain the highest standard of quality products and services, as well as enhance management techniques.
The acquisition of five new aircraft is in accordance with THAI`s marketing and product development plans. THAI plans to modernize the aircraft fleet to promote higher performance and safety standards in line with global standards in the airline industry. Fleet development will enable THAI to accommodate the rapid growth of air traffic demand of 5 per cent per annum. THAI also plans to expand its service network to cover more destinations on intercontinental and regional routes at an expected rate of 4.7 per cent production per annum. The rationalization of THAI`s aircraft fleet will help reduce costs in the long term. THAI will also operate in support of government policy and activities to aid the recovery of Thailand`s economic situation through promotion of Thailand`s tourism industry. The acquisition of new aircraft will enable THAI to compete more effectively in the commercial airline business.
A budget of 31,544 million Baht has been allocated to cover the new aircraft, which comprise one medium-range aircraft and four long-range aircraft. Following Cabinet approval, THAI`s Board of Directors and Management may then select appropriate type and series of aircraft, focusing on performance and seat capacity. Other issues will also be considered including technology, operational cost, and economic returns. Specifications of these aircraft must be in accordance with THAI`s marketing strategies and the existing composition of aircraft fleet. This issue will be raised at THAI`s Ordinary General Annual Shareholders` Meeting on 20th December, 2000.