Bangkok--11 Oct--Thai Airways
Thai Airways International Public Company Limited held a Board of Directors’ Meeting chaired by Mr. Ampon Kittiampon, THAI Chairman, at THAI Head Office with the following announcement:
1. Operating Results for September 2010
The Available Seat per Kilometer (ASK) for September 2010 was 3.79% higher than in September 2009. The Revenue Passenger Kilometer (RPK) for September 2010 was 2.50% higher than in September 2009. The Cabin Factor for September 2010 averaged at 73.43%.
During July-September 2010 (3rd Quarter), the Available Seat per Kilometer (ASK) was 3.78 % higher than the same period last year, and was 4.87% higher than in the 2nd Quarter 2010. The Revenue Passenger Kilometer (RPK) was 5.13 % higher than the same period in 2009, and was 21.61% higher than in the 2nd Quarter 2010. The Cabin Factor averaged 74.88%, which was 1.30% higher than the same period the previous year, and was 15.97% higher than in the 2nd Quarter 2010.
For Cargo and Commercial Mail, the Available Dead Load Ton-Kilometers (ADTK) in September 2010 was 21.05% higher than in September 2009. Revenue Freight Ton-Kilometers (RFTK) in September 2010 was 28.42% higher than in September 2009, which was 1.24% higher than in August 2010. The Freight Load Factor for September 2010 averaged at 62.40%, which was 6.09% higher than in September 2009, and 3.32% higher than in August 2010.
During July — September 2010 (3rd Quarter), the ADTK was 20.16% higher than the same period in 2009, and was 6.49% higher than 2nd Quarter 2010. The RFTK during this period was 36.87% higher than the same period in 2009, and was 0.82% higher than 2nd Quarter 2010. The Freight Load Factor averaged 61.35%, which was 13.91% higher than the same period last year.
2. Long-Term Product Plan
THAI’s Board of Directors granted approval in principle of the Long-Term Product Plan 2011-2022 that will boost company revenue, create a competitive edge with competitor airlines, and increase customer satisfaction. The Long-Term Product Plan emphasizes improvements for increased comfort and convenience, to support corporate identity, and be more contemporary, in line with the Corporate Plan 2010-2014.
The Company’s framework on the Long-Term Product Plan will be based on its strategic positioning as a premium service network airline with a competitive product range and excellent services in all classes of passenger travel. As well, the plan was developed based on the needs of passengers in each market, in line with the fleet and network strategy, and based on product concept and identity. Design, technology, and various developments were considered, which includes seat arrangement, tools and equipment that facilitate passenger ease and comfort in all physical movements. Designs were made based on the customers needs in each class of passenger travel, whereby the image and design is attractive and modern, in response to the taste of customers and passengers in each target group and in accordance with its corporate identity, with products selected based on their features that are environmentally friendly.
Guidelines for preparing the Long-Term Product Plan for fleet improvement are as follows:
- Aircraft that will be retrofit must be in operation for at least 5 years to qualify for investment.
- Principle for renovation of passenger cabin and inflight products require for the aircraft to be in service for at least 5 more years for effective return on investment. Aircraft must be retired from the fleet in not more than 22 years.
- After retrofit, passenger cabin and inflight products must be according to the established inflight product concept and identity as well as the Company’s strategic positioning.
- All aircraft in the fleet should be retrofitted or go through product improvement once the aircraft reaches half of its total service expectancy or once it reaches 7-10 years. The Company has six projects in place for passenger cabin and inflight product improvement:
Passenger cabin and inflight product improvement plan for 6 Airbus A340-600 aircraft during 2012-2013. Passenger cabin and inflight product improvement plan for 4 Airbus A340-500 aircraft during 2013-2014. Passenger cabin and inflight product improvement plan for 6 Boeing 777-200 aircraft during 2018-2019. Passenger cabin and inflight product improvement plan for 8 Airbus A330-300 aircraft during 2020-2021. Passenger cabin and inflight product improvement plan for 7 Airbus A330-300 aircraft during 2021-2022. Passenger cabin and inflight product improvement plan for 6 Airbus A380-800 aircraft during 2022-2023.
Each project under the Long-Term Product Plan will be studied in depth with regards to design, price assessment, and investment budget. This includes return on investment in each project proposed to Management, in order to gain approval prior to implementation.
3. Mutual Separation Plan 2010
THAI’s Board acknowledged the 2.3 billion baht Mutual Separation Plan 2010. The compensation under this plan shall not exceed 30 times the salary, plus a special compensation package of 10 times the salary will be offered. Qualified candidates for mutual separation must be at least 45 years of age and have been employed at least 15 years by the Company.
The Mutual Separation Plan is a project for the mutual agreement between the Company and the employee. The Company will bring down the number of employees per the number that is approved to join the project. There will not be new recruitment except for necessary cases. Moreover, the Company reserves the right not to approve any employees whose expertise and knowledge is vitally important to the organization. This Mutual Separation Plan is one of the Company’s human resource management projects that aims to improve on number of its workforce to increase the management and human resource cost structure effectiveness in the long term.
International Public Relations Department
Thai Airways International Public Company Limited
Tel : (662) 545-2662 / 2663 / 1711 / 4686 / 1705 / 2720
Fax : (662) 545-3891