Thai Airways International's plan to acquire 15 new aircraft by 2014 for Bt35.5 billion was approved by its board yesterday, in recognition of stricter emissions requirements in the near future.
Seven 300-seat aircraft will be acquired through a Bt31.3 billion financial lease for regional routes, while eight 350-seat aircraft for long-haul routes will be acquired via operating leases running 10-15 years, chairman Ampon Kittiampon said.
A budget of Bt922 million was also set aside for two engines for the regional aircraft, and another one of Bt3.3 billion for three engines for international routes.
These 15 aircraft will join five A330-300 aircraft that have already been ordered and will be put in service this year and six A380 aircraft that will enter the fleet from 2012-2013.
President Piyasvasti Amranand said the new aircraft's influence would not show up in this year's performance but would be significant in the long term.
The procurement would be as transparent as possible, to keep intervention at bay, he said.
"Our focus will be on further reducing non-fuel expenses by Bt12 billion this year (from Bt10.8 billion last year), and how to make the airline profitable in 2010 as scheduled," he said.
These energy-efficient aircraft will help the flag carrier meet the European Union's stricter greenhouse gas emission restrictions, he said.
In 2012, airlines flying into the EU will face emissions quotas in the EU's attempt to fight climate change.
THAI now operates 91 planes - 47 Boeings, 42 Airbus' and two ATRs - with a reported average age of 11.6 years, versus six years for a regional leader like Singapore Airlines.
The THAI board also approved a hedging policy to reduce the risk from fluctuating jet fuel prices.
"This policy is devised for the company's operating results to meet target and to prevent risks to shareholders and stakeholders. It is not intended to generate revenue or profit," Ampon said.
Fuel risk management would be carried out continuously and systematically by the Petroleum and Corporate Insurance Department for 20-80 per cent of the average fuel consumption per month taken in a fiscal year.
Last year, only 3-20 per cent of its fuel needs was hedged. In 2008, the airline lost Bt6 billion through hedging, as contracts were bought when oil prices peaked.
The board also appointed Pravich Rattanapira, the science minister in the Surayud government, to immediately fill the executive chairman post vacated by Wallop Bhukkanasut.
From The Nation
