Prime Minister Thaksin Shinawatra recently stated that
he is satisfied with the national flag carrier’s development and
strategic plan over the next five years because the plan has set a
realistic target that could earn the company as much as 200 billion baht
over the next five years.
The company’s plan will emphasize an increase in
efficiency and a reduction of unnecessary costs. Continued internal
restructuring, including improvement of personnel management, inventory
cuts, and introduction of modern technology will also be implemented.
A THAI proposal to purchase a new fleet of 12 aircraft,
worth over 50 billion baht may also be part of the 5-year plan, if the
procurement proves necessary to serve THAI’s expansion of aviation
routes, particularly those to Europe.
The prime minister said, “I suggested that the
national flag carrier consider three dimensions, including maintaining a
profit taking company, retaining its good reputation and image, and
boosting opportunities for Thai tourism and exports, when it implements
company policies and measures.”
However, representatives of THAI’s Labor Union have
lodged a protest with Premier Thaksin when he, Somkid Jatusripitak, deputy
prime minister and finance minister, and Wanmuhamadnoor Matha, transport
and communication minister arrived at the company’s headquarters. The
union opposes the company’s aircraft procurement and privatization
plans.
Union representatives said that it was not yet the
right time for THAI to spend a large amount of money to purchase new
aircraft given the slow growth of the global aviation industry. They also
stated that they felt it was not necessary for the national flag carrier
to be privatized and to be listed in the Thai stock market, as it had
maintained high business potential and good management.
Srisook Chandrangsu, permanent-secretary for transport
and communications said the new aircraft procurement was aimed at
supporting THAI’s plan to expand its aviation routes to more major
destinations in Europe, the United States, Australia and China over the
next five years to promote Thailand as one of the world’s commercial
aviation centers.
“Given the planned expansion of its aviation routes,
the national flag carrier will purchase 12 new aircraft over the
period,” said Srisook, who chairs a THAI sub-committee on long-term
planning. “The aircraft procurement was based on the company’s
principle of boosting its production by 4-5% of its overall system during
the 2003-2008 periods,” he noted.
The planned expansion of aviation routes and the
procurement of new aircraft are expected to help generate more revenue for
the national flag carrier to approximately 700 billion baht over the next
five years. This means that if all revenues are included, the company
would show about 70 billion baht profit over the period, Srisook
projected.
Srisook said that the procurement of the aircraft would
be mainly supported by both external and internal loans through the
Ministry of Finance.
“THAI wants to conclude the aircraft procurement
process by October. After that, the company will begin to choose aircraft
brands and to negotiate with manufacturing firms,” Srisook said.
If approved by the THAI board at its next meeting the
new aircraft procurement plan will be submitted to the Ministry of
Transport and Communications, the Office of the National Economic and
Social Development Board (NESDB), and the cabinet for final approval. (TNA)