THAILAND TRAVEL NEWS: National flag carrier Thai Airways International (THAI) claims to have stemmed its financial hemorrhaging and to be on the road to making a financial recovery – possibly even turning a profit for the 2009 year which ends December 31.

THAI chairman Ampon Kittiampon, who took over the role in April this year and who is also the secretary-general of the National Economic and Social Development Board (NESDB), said on Friday (Dec. 18,2009), “we’re back on our feet. Today marks a turnaround for THAI.”

The airline reported a loss last year of more than Bt21.38 billion (about $US644.75 million), partly due to poor fuel price hedging policies which saw it left paying above market prices for fuel after international oil prices dropped and partly due to the closure of Bangkok’s two airports by antigovernment People’s Alliance for Democracy (PAD) protesters last December.

Mr Ampon said in the first nine months of 2009 THAI posted a net loss of Bt1.57 billion ($US47.34 million) compared with a Bt6.61 billion ($US200 million) loss in the 2008 year.

He also said passenger yields in November had increased from Bt1.9 (six cents) to Bt2.1 per kilometer flown, while passenger loads during November were 74.2 per cent – only marginally lower than the forecast 76.7 per cent.

The THAI chief said the airline had achieved considerable success in aircraft uptime, reducing the number of aircraft grounded for maintenance and servicing from 26 to 11 and achieving an average daily utilization rate of 11 hours per aircraft.

The announcements came after the THAI board yesterday approved a five-year plan aimed at making the airline a top-three carrier in Asia and a top-five carrier in the world within the next two years.

The board also endorsed a plan for THAI to purchase 12 new jetliners – five for long-haul and seven for medium-haul routes – as well as a plan to retrofit 12 aircraft at a cost of Bt4.5 billion ($US13.57 million) as part of its fleet renewal plan.

Though Mr Ampon declined to speculate on the size of the profit THAI expects to report for the 2009 year, he did say, “things are better than expected”.

By John Le Fevre

Thailand Travel News for December 21, 2009