Thai Airways announces the signing “Boeing-GE” acquires 45 aircraft and engines to strengthen the fleet in 2070-76, with the aim of having a total fleet of 96 aircraft, replacing those retired and expired leases. to maintain market share Create sustainable income and profits
On February 14, 2024, Thai Airways International Public Company Limited announced that Thai Airways International recently signed an aircraft and engine supply contract with Boeing Company and GE Aerospace Company to acquire a new type of 45 medium and long-range wide-body aircraft with engines, with the right to acquire additional numbers (Option Order) for service in the company’s fleet from 2027-2033 according to the route network plan prepared
In the past year 2023, the company has issued an invitation to tender (RFP) to aircraft and engine manufacturers as part of its long-term fleet and route network management plan. To ensure that the company is able to maintain the level of income earned in accordance with the financial goals and projections prepared.
This acquisition of aircraft is to replace aircraft due to be retired and phased out within the above timeframe in order to maintain the Company’s market share. that has declined continuously over the past 10 years, with the Company’s market share at Suvarnabhumi Airport only falling from 51.3 percent in 2013 to just 27.0 percent in 2023, partly due to Ref. in terms of the company’s fleet. In terms of the size and efficiency of the aircraft in the fleet.
In 2013, the company had a total of 100 aircraft. Later, when the aviation industry was affected by the spread of the virus COVID-19, In addition, the company Entering business rehabilitation, the company has retired a number of aircraft that had a long service life. It has a high fuel consumption rate. Facilities in the cabin have deteriorated. There are maintenance costs that increase every year. It has a high investment value and is not worth improving in order to return to flight operations. As a result, at the end of 2022, the Company has only 64 aircraft used for flight operations, or the total fleet size has decrease 36 per cent compared to 2013
During the last 2022-2023, the company has resolved the fleet constraints by acquiring aircraft through an operating lease (Operating Lease) to be used in flight operations to support a rapid recovery in travel demand. These are 21 wide-body aircraft which will be gradually received from the second quarter of 2023. Most of them will be Airbus 350 aircraft equipped with Rolls-Royce Trent Quarter 4 from 2025 onwards, resulting in the number of aircraft in the company’s fleet Increased to 70 ships in 2023 and will increase to 79 ships in 2024 and 90 ships in 2025, respectively.
However, when considering the fact that the number of aircraft in the retirement plan and the lease contracts will gradually come to an end. The manufacturer’s production period and the demand for aircraft in the industry has increased significantly if the company does not acquire a long-term fleet of aircraft this time. As a result, in 2033 the company’s fleet will only have 51 aircraft left, or 49 percent less than in 2013, which is not enough to generate income. Maintain market share The ability to create sustainable growth as well as the ability to repay debts to creditors in accordance with the business rehabilitation plan. And when considering the number of additional aircraft currently being acquired, 45 aircraft, in 2033 the Company will have a total of 96 aircraft, which is still less than the number of aircraft in the Company’s fleet in 2013.
In terms of the financial plan used to pay for the said aircraft and engines, At the moment the company Prepares funding and predicts liquidity in the future that there is enough to pay for the aircraft and engines in accordance with the procurement schedule The company will consider the source of funding and choose the appropriate funding method again. which will depend on the financial situation Liquidity of the company and financial value It will be open to consider models for operating leasing and leasing aircraft in appropriate proportions. And this acquisition of aircraft will not affect the Company’s ability to repay debt. according to the business rehabilitation plan in any way
In acquiring this aircraft, the company has proceeded with caution and has given importance to transparency in the process. Dealing directly with all manufacturers without going through an agent. References operating models widely used in the aviation industry. Compare with other leading airlines at international level Leading consultants recognized in the international aviation industry are involved in developing the route network model. Financial models and projections Set detailed criteria for selection, evaluation and negotiation with manufacturers. Focusing on the company’s highest advantages is important, in terms of operating costs in all dimensions, such as the competitiveness of passenger experience and satisfaction, which is the ability to respond to passenger needs in different dimensions, such as comfortable seats, cabin. amenities, etc. Ownership or rental cost Maintenance costs Fuel consumption Performance and reliability (Reliability) in flight operations Ability to generate income in line with financial projections under the business rehabilitation plan, such as production volume Fleet management efficiency in line with the network plan routes of the ability to compete in price, etc.
The company will reveal facts in detail about the aircraft and engine models in this procurement along with the manufacturers at the Singapore Air Show which will be held in Singapore between 20-25 February this year.
The company will continue to cooperate with the world’s leading aircraft and engine manufacturers in developing its fleet. continuously in order to increase passenger confidence in terms of travel safety Quality of aviation products and services And be confident that the process of acquiring long-term fleet management will be completed this time. Act with care based on necessity in order to achieve business goals and success with transparent processes and criteria. Adhering to the highest benefits of the company is important, not only to achieve the goal of rehabilitating the business. but also to create sustainable business growth and profits in the future. and move towards becoming the world’s leading airline that every Thai person is proud of.
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