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THAI to Secure 28 New Aircraft in the Next 5 Years
16th Jun 2017
Next month Thai Airways International (THAI) should propose to its board that it procures 28 new planes in the next five years. These planes will be used to replace the older ones that are slowly going out of service.
19 of 28 planes will go directly to THAI and 9 to its subsidiary Thai Smile. This will include 10 Boeing 747-400s, 7 Boeing 777s and 2 Boeing 737s for THAI.
THAI Acting President Usanee Sangsingkeo said following a THAI board meeting on Wednesday:
We want to maintain our base. We have 100 aircraft and want to maximize [their] efficiency. If we do not increase flights or frequencies, we can stay with 100 aircraft. Today, we’re profitable and can manage. The [details] of the procurement will be waiting for the manufacturers’ proposed specifications and prices.
Once the board accepts the plan, it will be forwarded to the State Enterprise Policy Office and after that to the Cabinet. Once that is done, the flag carrier will be able to place its first orders somewhere in the Q4 2017.
It’s not yet decided what the model of procurement will be and whether THAI will buy planes or lease them from other carriers as this depends on the planned decommissioning of current planes. However, what is known is that, according to THAI Chairman Areepong Bhoocha-Oom, the procurement plan will follow the regulation set back in 2012. This regulation requires that the procurement goes through several committees.
This wasn’t the only topic of the board meeting this Wednesday. The board also discussed the resumption of Bangkok-Vienna service, which it did not approve, saying that it needs to study it more.
THAI board also decided against increasing capital in Nok Air. The reason given was that the management there did not offer a clear financial and management plan. THAI currently owns 21.5% share in Nok Air.
Per Usanee, the national carrier recorded an average load factor of over 80% in the last quarter, higher than in the same period last year. At the same time, reservations for the next quarter are also higher.
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