THAI President roadshow seeks foreign investment in restructure programme

Thai Airways (12-Nov-2009) announced President, Piyasvasti Amranand is currently on roadshows with overseas investors to discuss the carrier's recovery plan and strengthen the carrier's relationship with the investment community. Through the carrier's recovery plan, THAI plans to lower its debt-to-equity ratio from 3:1 to 2:1 (outstanding debts now total USD4.8 billion). Consideration of a recapitalisation will be dependent on planned investments, operating results and other financing options. THAI is expected to cut non-fuel expenses by USD540.4 million this year, while fuel costs are expected to be USD1.4 billion. Other major financial measures Mr Amranand wants to implement include:

• More leasing rather than outright purchasing of aircraft;
• Increasing proportion of internet sales from 4% to 15% of total sales by the end of 2010. Ticket prices to better reflect demand and supply;
• More cooperation with Star Alliance partners and Nok Air to expand;
• Senior executive and staff benefits under review.

The five key strategies for THAI's recovery and growth in its recovery plan include:

• Aligning customer service to needs;
• Better cooperation between THAI business units;
• A more dynamic and responsive organisation structure;
• A focus on revenue enhancement;
• Introducing a "whistleblower policy". [more]