“Sumeth” Introduces Framework for THAI to Acquire New Planes with ฿100bln. Budget
As the new president and director of THAI, Mr. Sumeth had introduced a new plan to take back the lost market shares, and boost cabin factor.
Mr. Sumeth Damrongchaitham, president and director of Thai Airways International Public Company Limited (THAI), stated that the company will submit a new framework for new airplanes arrangement to the Boards to get an approval from the cabinet within December, while expecting the deal for new planes to be completed within next year, and the company would receive the planes by 2020. THAI aims to acquire 23 new planes with ฿100 billion budget.
Following the statement of THAI’s director, THAI had lost 10% of market shares in the past three years from the steadied quantity of airplane. THAI currently has 100 planes, and it needs at least 25 more planes to take back the lost 10% of market share at the growth rate of 3% per year, according to the aviation business.
Mr. Sumeth asserted that THAI may strengthen its force with rental planes while waiting for the new planes. The plan would be carefully considered since the high season is around the corner, and there are a certain amount of THAI’s planes that are being maintained.
THAI had also cooperated with Spring Airlines, biggest low-cost Chinese airlines, to help carry Chinese tourists during the high season (December 2018 – February 2019), and on Chinese New Year. Thai Airways would carry the Chinese tourists to their destinations in other countries. Meanwhile, Thai Air Asia, Nok Air, and Thai Smile are ready to carry Chinese tourists domestically as the free-visa promotion for Chinese tourists is available. THAI will consider discussing long-term business with Spring Airlines as well.
The director also stated that the cabin factor was 78% in October-November, relatively the same percentage of last year, but the cooperation with Spring Airlines would boost the number to at least 80%.