Friday, August 28, 2009

AIRLINE MULLS RAISING CAPITAL LATER THIS YEAR

       Thai Airways International is mulling a plan to raise capital, as part of the airline's plan to strengthen its financial condition without depending solely on sales revenue.

       After THAI's board of directors meeting yesterday, executive chairman Wallop Bhukkanasut said the airline needed to have a stronger capital base.
       "Late this year, it will be finalised whether THAI will raise capital and how much," he said.
       THAI is now capitalised at Bt17 billion.
       According to Wallop, the national carrier will try its best to achieve the Ebitda (earnings before interest, tax, depreciation and amortisation) at Bt25-Bt30 billion. He noted that the target is achievable, noting the August cabin factor of 76 per cent, which was higher than expected. Meanwhile, THAI looks to see a stable cabin factor during September through December, a large part of the country's high season.
       The board approved in principle the restructuring of the corporate strategy and planning department, which will oversee the planning, operations and IT units. The department is crucial in plotting business strategies, overseeing the fleet and maximising returns from assets.
       THAI has yet to appoint the executive vice president for the department.
       The airline's labour union has voiced opposition to the restructuring. Wallop noted that THAI would need to clear the issue with the union, insisting that the new structure was vital for the company's future growth. He added that the department was crucial as it will put all the planning, operations and IT activities, which are now spread under different departments, in one roof. This will lead to higher efficiency, he said.
       The board also appointed Pruet Boobphakam as executive vice president for the commercial department. It also appointed Chuda Dhanabhumi, special activities adviser, as vice president for the human resources planning and development department. The appointments take effect immediately.
       According to Wallop, Pruet is the most experienced in commercial affairs. He has been stationed in a number of countries, including Germany, Sweden, Australia, Malaysia and China.
       "His main task is to increase revenue. He will need to make the decision whether the number of Bangkok-Oslo flights will be increased from five per week to six, as all flights are fully booked. Meanwhile, he will also consider whether to resume Bangkok-Johannesburg flights in preparation for World Cup 2010," Wallop said.
       Pruet was appointed managing director of the cargo and commercial mail department in December 2008. He will remain acting managing director of the department.

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