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THAI to lease, sell aircraft to turnaround after big losses in 1H

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THAI to lease, sell aircraft to turnaround after big losses in 1H

By The Nation

 

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THAI's president Sumeth Damrongchaitham speaks to the press on Tuesday. – The Nation

 

Thai Airways International (THAI) will consider leasing out three new aircraft and selling four existing aircraft to boost its revenue for the rest of this year after the carrier reported a net loss of Bt6.43 billion in the first half of this year, the company’s president Sumeth Damrongchaitham said on Tuesday.

 

“We expect our total revenue in the second half of this year to be better than the first half, when the baht depreciates now that the Monetary Policy Committee has cut the policy interest rate by 0.25 per cent early this month and September, high season for tourists, arrives,” he said. 

 

The national carrier is planning to boost the number of aircraft leased to European airlines by three and sell four existing airplanes and will propose this plan to its board soon. 

 

The airline will also buy foreign exchange after sustaining losses of 5 per cent when the baht appreciated in the first half of this year compared to the end of last year. 

 

“If we don’t do anything, we will suffer high losses for the rest of this year. We believe our business strategy will reduce our losses in the rest of this year,” he said. 

 

As for the plan to buy 38 new aircraft worth Bt156 billion, it needs to be reconsidered because the government has insisted that the funding for the purchase must come from the company, he said. 

 

Sumeth added that the airline has also announced its cost-saving schemes such as SaveTG Co-Creation, which reduces its management cost without having an impact on its service quality. 

 

The airline is also collaborating with other organisations to reduce its cost by following a zero-waste management policy. THAI is also planning to introduce new direct flights to Sendai, Japan in the last quarter of this year. 

 

THAI is also focusing on digital marketing to boost customers and reduce costs, and is cooperating with its business partners and subsidiary ThaiSmile to provide services and increase its income, he said.

 

Source: https://www.nationthailand.com/business/30374710

 

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-- © Copyright The Nation Thailand 2019-08-14
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2 hours ago, webfact said:

to be better than the first

meaningless  could be  just 1  satang  better  to  pass  this "test"

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3 hours ago, webfact said:

leasing out three new aircraft and selling four existing aircraft

Burkina Faso might look in to it 

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5 hours ago, webfact said:

THAI to lease, sell aircraft to turnaround after big losses in 1H

Iv'e got a better idea. Why not lease Thai Airways lock, stock and barrel. Or better still, sell it for the value of the debts and leases. The directors and senior management have no value and can be written off.

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They have been in crisis now for two or three years,my only surprise is they are still operating,with these sort of losses,if it continues,they will go under, unless the Govt bail them out,which from the report seems unlikely.

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