THAI Announces Board Meeting Results

THAI Announces Board Meeting Results

Thai Airways International Public Company Limited (THAI) has held a Board of Directors’ Meeting chaired by Mr. Ampon Kittiampon , THAI Chairman, at THAI Head Office with the following announcements. 

1. Operating Results for June 2011

The THAI Board of Directors acknowledged the operating results for June 2011 as follows:

Available Seat-Kilometer (ASK) for June 2011 was 7.4% higher than in June 2010 and 0.8% lower than in May 2011.  Revenue Passenger-Kilometer (RPK) for June 2011 was 8.2% higher than in June 2010 and 5.1% higher than in May 2011 . Revenue Passenger was 13.5% higher than in June 2010.  Cabin Factor for June 2011 averaged at 65.8% which was 0.8% higher than in June 2010 and 6.3% higher than in May 2011.

For the 2 nd quarter of 2011, the period from April to June 2011, the Available Seat Kilometer (ASK) was 6.7% higher than the same period the previous year. The Revenue Passenger Kilometer (RPK) was 9.8% higher than the same period in 2010. The Cabin Factor averaged at 66.5%, which was 2.9% higher than the same period the previous year. 

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Available Dead Load Ton-Kilometers (ADTK) for June 2011 was 6.3% higher than the same period the previous year and 2.6% lower than in May 2011. Revenue Freight Ton-Kilometers (RFTK) for June 2011 was 5.6% lower than the same period the previous year and 2.5% lower than in May 2011.  Freight Load Factor for June 2011 averaged at 57.9%, which was 10.9% lower than the same month the previous year and 0.2% higher than in May 2011.

Available Dead Load Ton-Kilometers (ADTK) for the 2 nd quarter of 2011, the period from April to June 2011 was 11.1% higher than the 2 nd quarter of 2010. Revenue Freight Ton-Kilometers (RFTK) for the 2 nd quarter of 2011 was 0.7% lower than the same quarter in 2010. Freight Load Factor for the 2 nd quarter of 2011 averaged at 57.9%, which was 10.6% lower than the same quarter in 2010.

2. Refinancing Loan from Standard Chartered Bank

THAI’s Board of Directors approved the refinancing of Standard Chartered’s 5 billion baht loan. Of the 5 billion baht, interest reduction was sought on 3 billion baht in borrowings from Standard Chartered. For the remaining 2 billion baht, a 7-year loan was sought from ICBC BANK totaling 1.5 billion baht with a grace period on principle repayment for the first 2 years.  A revolving credit line of 2 billion baht was also given to THAI by ICBC Bank.

3. Revision to aircraft decommissioning plan 2011-2017

THAI’s Board of Directors approved the revision plan for decommissioning 50 aircraft during 2011 – 2017, in accordance with the 11 th June 2011 Board-approved Aircraft Acquisition Plan 2011-2017, that included:

- Boeing 747-400, 4 aircraft from 2012 – 2013
- Airbus A340-500, 4 aircraft from 2012 – 2013
- Airbus A340-600, 6 aircraft from 2015 – 2017
- Airbus A300-600, 13 aircraft from 2011 – 2015
- Boeing 737-400, 9 aircraft from 2014 – 2015 (includes 4 returning aircraft from NOK Air)
- Boeing 777-300ER, 5 aircraft in 2015 (leasing ends from Jet Airways)
- Boeing 777-200, 2 aircraft in 2017
- Airbus A330-300, 3 aircraft in 2017
- ATR-72, 2 aircraft in 2017 (returning from NOK Air after leasing ends)

In addition, the THAI Board approved to cancel the retrofitting of aircraft seats for Airbus A340-500 and Airbus A340-600, and approved to sell the Airbus A340-500, Airbus A340-600, Airbus A300-600, Airbus A330-300, Boeing 747-400, Boeing 777-200, Boeing 737-400, ATR-72 which are included in the aircraft decommissioning plan .  The THAI Board delegated THAI Management to propose the process for selling the aircraft to the Board for approval.

4. Early delivery of Boeing 777-300ER from Jet Airways

THAI’s Board acknowledged the early delivery schedule of Boeing 777-300ER aircraft from Jet Airways (India) Limited (Jet Airways), in order to enable THAI to improve its competitiveness. The delivery schedule has changed from 25 October to 26 July 2011. Starting 1 August 2011 these aircraft will operate three flights weekly on the Bangkok-Madrid route and vice versa.

At the 20 th April 2011 board meeting, the THAI board approved the short-term lease of these two Boeing 777-300ER aircraft from Jet Airways (India) Limited (Jet Airways), on a two-year lease agreement. The two aircraft are of the same type with the same in-flight entertainment system, and of the same age, as the previous three aircraft THAI leased from Jet Airways in 2010.  Each aircraft is configured with three cabin classes, for a total of 312 seats – eight seats in Royal First Class, 30 seats in Royal Silk Class, and 274 seats in Economy Class.

5. Management Appointments

THAI’s Board of Directors approved the appointments below.

5.1 Mrs. Wasukarn Visansawatdi, Vice President of Business Development and Special Project Department, as V ice President of Corporate Finance Department during 11 July – 30 September, 2011; and as Executive Vice President of Finance and Accounting Department, effective from 1 October 2011

Effective from 11 July 2011

5.2 Flt. Lt. Sopit Pokasoowan, Vice President of Risk Management Department, as Vice President of the Office of the President

5.3 Mr. Apichart Danaivan, Vice President of General Administration Department, as Vice President of Human Resources Management Department

5.4 Mr. Pichait   Riengvattanasuk, Vice President of Corporate Finance Department, as Vice President of Risk Management Department

5.5 Mr. Smith Pirunsarn, Vice President of the Office of the President, as Vice President of the Office of Strategy and Business Development Department

5.6 Ms. Jirapan Siripraiwan, Director of Strategy Development Department, as Vice President of Business Development and Special Project Department

5.7 Mrs. Suvimol Bualerd, Director of Terminal Operations Department, as Vice President of General Administration Department

Effective from 1 October 2011

5.8 Mr. Raj Tanta-Nanta, Vice President of Investor Relations Department, as Vice President of Corporate Finance Department

5.9 Sqn. Ldr. Pongpeera Paisarnkulwong, Mission Commander of Flight Operations Department, as Vice President of Aviation Safety, Security & Standards Department

5.10 Mr. Saroj Yuttatri, Director of Information Technology Operations & Services Department, as Vice President of Information Technology Services Department