Thai Airways' new President starts work, carrier planning share issue for 2010
Thai Airways announced Dr Piyasvasti Amranand commenced his term as President of the carrier on 19-Oct-2009. Dr Piyasvasti stated his strategy is to aim to "create higher value for customers, design a more effective business model to increase competitiveness and lower costs, pursue operational excellence, and ensure financial sustainability". [more] Dr Piyasvasti also made the following statements:
- Revenue: Expected to fall 21% year-on-year in 2009, to USD4.7 billion, while improved passenger traffic should increase revenue to USD5.6 billion in 2010 (Reuters, 19-Oct-2009). Dr Piyasvasti added the carrier is unsure what its net earnings will be this year, but passenger traffic has improved in 3Q2009.
- Share issue: Thai now plans to launch a share issue in 2010 (amount not disclosed), to raise capital to repay short-term debt. Thai currently has USD869 million in debt maturing in 2009. The carrier is also planning to convert some of the short-term debts into longer maturities of six years.
Thai Airways: “I am under no illusion about the challenges facing aviation today, and that includes the challenges facing Thai...But we still need to do more [on top of the carrier's current turnaround plan]. We must continue to cut costs, radically improve our operational performance and enhance the efficiency and returns of every division within the airline. In this regard, I look forward to working with the large range of airlines and aviation organisations, such as IATA, Star Alliance, AAPA, ICAO and many others with whom Thai has excellent and enduring relationships,” Dr Piyasvasti Amranand, President. Source: Thai Airways, 19-Oct-2009.