Mr. Thaworn Senneam, Deputy Transport Minister, and Mr. Jua Ratchasri, Assistant Secretary, Ministry of Transport, and entourage visited Thai Airways International Public Company Limited (THAI) and followed up on the policy granted to THAI as well as progress made. Air Chief Marshal Chaiyapruk Didyasarin, THAI Chairman of the Board of Directors, Mr. Sumeth Damrongchaitham, THAI President, and THAI Management, welcomed the group at THAI Head Office.
During the company visit, Mr. Thaworn Senneam, Deputy Transport Minister, followed up on progress made on the Ministry’s policy as well as operational problems and obstacles, in order for THAI to resume earning better financial results and become one of the world’s leading airlines. He followed up on the Ministry’s policy, such as turnaround plan and business plan, aircraft acquisition plan for 38 aircraft, company management and structure, U-Tapao aircraft maintenance center, seeking revenue and operating results. Furthermore, additional policies were presented, such as human resource management, manage company property to the maximum benefit, manage and improve sales and marketing between THAI and THAI Smile.
Mr. Sumeth Damrongchaitham, THAI President, has proceeded to its utmost abilities to act upon the policies granted by the Transport Minister, which will be used in resolving accumulate financial losses and for longstanding profitability . Progress has been made on the following projects:
- Reconsideration of THAI’s Long Term Plan 2019-2026 that planned to acquire 38 aircraft, whereby THAI’s Board of Directors approved of the plan to acquire aircraft to replace 17 aircraft that will be decommissioned, which must be suitable to the financial situation and current altered conditions. The Management is to study aircraft types and present results to the Board of Directors Meeting in February 2020. The Company will present information on the number of aircraft, acquisition methods, and investment sources for close consideration at the Board of Directors Meeting in March 2020. This plan will help the Company to grow continuously and not be a financial burden, which will be presented to the Ministry of Transport by 31 March 2020.
- With regards to the Maintenance, Repair, and Overhaul Center (MRO), THAI has sent information on selection to investors. The deadline for proposal submission is 6 March 2020, would enter into the negotiation process, conclude selection results, and draft the Public
Private Partnership Agreement (PPPA) that would be submitted to the Office of the Attorney
General and Eastern Economic Corridor (EEC) Policy Committee for consideration prior to proposal to the Cabinet for agreement in August 2020. The Company expects to sign the PPPA with the awarded bidder by the end of August 2020 and it is expected that the new MRO center at U-Tapao will be operational by April 2023.
- Negotiations between the Company and Rolls Royce on damages are underway to seek compensation for damages from Rolls Royce for the period that THAI’s aircraft was not operational while it awaited spare parts for a substantial period of time, which resulted in damages and loss of business opportunities.
Furthermore, the Company has proceeded to increase its revenue according to the Middle Turnaround Plan (2020-2024) through innovation and digital technology to be more modern, fast, and high quality, implementing modern technology to various projects such as TG Digital Technology, sales development plan, and boost ancillary revenue in order to improve online sales. THAI is in the process of implementing cost reduction and cost control as well as organizational restructure.
The Deputy Transport Minister opened the floor to discussion about the open sky policy and emphasized the importance to increase revenue and reduce expenses on a continual basis, in order that THAI may turnaround its operations and be sustainable into the future.