Bangkok--23 Jan--Thai Airways
Thai Airways International Public Company Limited (THAI) held its Board of DirectorsMeeting, chaired by Mr. Ampon Kittiampon, THAI’s Chairman of the Board of Directors, with thefollowing results.
1. Operating Results for December 2011
THAI’s Board of Directors acknowledged operating results for December 2011 as follows:
Cabin factor for December 2011 averaged 68.1 percent which was higher than November 2011 but was
exceptionally weak especially for the peak season. The decrease in passenger number was attributable tothe recent flood. Although many areas in Bangkok and its vicinity were less affected and some areas havingfully recovered, many passengers still cancelled or postponed their travel to Thailand, especially oninternational and regional routes. Cargo and commercial mail service was also affected in December as aresult of the flood. Revenue Passenger-Kilometer (RPK) for December 2011 was 8.9 percent lower thanthe same month last year. Available Seat-Kilometer (ASK) for December 2011 was 0.7 percent higher thanthe same month last year.
For the period from January to December 2011, the Company’s Available Seat-Kilometer (ASK) was 3.9percent higher than the same period last year. Revenue Passenger-Kilometer (RPK) was 0.7 percent lowerthan the same period last year. Cabin factor averaged 70.4 percent, which was 4.4 percent lower than thesame period last year.
Available Dead Load Ton-Kilometers (ADTK) for December 2011 was 4.1 percent lower than the samemonth the previous year. Revenue Freight Ton-Kilometers (RFTK) for December 2011 was 10 percentlower than the same month last year. Freight Load Factor for December 2011 averaged 54.3 percent, whichwas 6.2 percent lower than the same month last year.
For the period from January to December 2011, the Available Dead Load Ton-Kilometers (ADTK) was 4.5percent higher than the same period last year. Revenue Freight Ton-Kilometers (RFTK) was 4.4 percentlower than the same period last year. Freight Load Factor averaged 56.2 percent, which was 8.5 percentlower than the same period last year.
2. Issuance of Debentures via Private Placement
THAI’s Board approved for the Company to secure long-term funding by issuing approximately 1 billionbaht 7-year debentures and 2 billion baht 10-year debentures via private placement. The proceeds will beused in the Company’s operations, for asset investments, loan repayment with high funding cost, wherebythe Bank of Ayudhya Public Company Limited has been appointed as advisor and lead underwriter for thisundertaking.
3. Cost Management Strategy for Sustainability
The Board acknowledged the initial Cost Management Strategy initiatives which include the reduction ofallowances outside of basic salaries, taking three key considerations into account: the sustainability of thenational carrier, fairness to all employees, and benefit to all stakeholders. The plan has been approved bythe THAI Executive Management Committee and the Joint Management & Employee Relations Committeeand is being implemented for 2012.
The cost reductions, amounting to 602.45 billion baht per year, are from various areas. In the area ofemployee benefits and allowances, The THAI president will waive meeting allowances for participation inBoard meetings and other executive management meetings. Members of the Joint Management &Employee Relations Committee will also forego meeting allowances through 2012.
THAI President, Executive Vice Presidents, and Managing Directors have agreed to an 11 month pay forfiscal year 2012.
There will be a curb in public holidays, where THAI offices will remain open for business. In addition,Executive Vice Presidents, Vice Presidents, and Business Unit Managing Directors will have their annualvacation days reduced from 28 days to 24 days.
On a positive note, the Cabin Factor for 1-16 January 2012 is 78.7 percent on average (mainly from
European and Australian routes), which is an increase from the same period last year. Reservation for thesecond half of January averages 77 percent capacity.
4. Appointment of New Board Member
THAI’s Board of Directors approved the appointment of a new Board Member to replace one that hasresigned, with effect from 20 January 2012 onward.
4.1 Mr. Silpachai Jarukasemratana replaces Mr. Supot Sub-lom