Thai Airways president Piyasvasti Amranand stated: "We are reluctant to buy more shares in Nok Air", due to its lack of hedging against prevailing high fuel prices, and its policy to purchase aircraft as opposed to leasing (Bangkok Post, 26-Feb-2011). THAI offered recently to purchase 5 million Nok Air shares held by Krung Thai Bank for USD4.9 million (THB150 million) or THB30 baht a share. KTB maintains the shares are worth THB44 each and has not responded to THAI's proposal.
Thai Airways reluctant to buy more shares in Nok Air
You may also be interested in the following articles...
Thai Airways SWOT: opportunities for growth, but challenges as competition further intensifies
Thai Airways is approaching a critical juncture as it completes a restructuring and seeks to resume growth. Its home market offers opportunities and an envious growth rate, but intensifying competition creates challenges.
Thai Airways is sandwiched between rapidly expanding low cost airlines and ambitious Gulf airlines. Its multi-brand strategy has so far proven to be a less than sufficient response.
In this SWOT analysis CAPA examines the Thai Airways Group’s strengths, weaknesses, opportunities and challenges.
Southeast Asia Fleet Outlook:
Southeast Asia, along with the Middle East, are the only two regions with as nearly as many aircraft on order as in the active fleet. Southeast Asian airlines currently have nearly 1700 aircraft on order compared to an active fleet of approximately 1800 aircraft.