Bangkok: Aviation-related stocks, including Airports of Thailand Public Company Limited (AOT) and Thai Airways International Public Company Limited (THAI), experienced a significant decline as apprehensions about government intervention mounted. THAI shares saw a second day of losses at 4:20 PM, dropping by 5.22% to 10.90 baht. Similarly, AOT shares decreased by 5.23%, reaching 40.75 baht.
According to Thai News Agency, Krungsri Securities reported that while AOT shares have not undergone fundamental changes, they may be negatively impacted by fears of government intervention, particularly because the Ministry of Finance holds a 70% stake in the company. These concerns emerged following issues with THAI. For the third quarter of 2025, profits are anticipated to drop by 22% year-over-year and 14% quarter-over-quarter. This is attributed to the reclaiming of duty-free space and the discontinuation of inbound duty-free services, which are expected to reduce revenue. Additionally, costs from SAT1 and Runway 3 at Suvarnabhumi Airport are projected to rise.
In parallel, THAI's stock decline is linked to worries over a potential board reshuffle. The Ministry of Finance, a key shareholder, has proposed appointing 10 new board members and increasing the number of directors from 11 to 15. They have called for a general meeting of shareholders, tentatively scheduled for December 19, 2025, to address these board changes.
Yesterday, the Nomination Committee convened to discuss the appointment of a new board of directors, though no decision was made regarding the increase in the number of directors. Another meeting is planned for October 21st, with outcomes to be presented at the Board of Directors' meeting on October 23rd.
Standard procedure at an Annual General Meeting (AGM) necessitates the rotation of one-fourth of the longest-serving directors. Consequently, three directors-Mr. Piyasawat Amranand, Air Chief Marshal Amnat Jiramani, and Mr. Chansin Treenuchagron-are required to vacate their positions, with an additional member to be removed by lot.
Mr. Chai Eiamsiri, THAI's Chief Executive Officer, communicated to the Stock Exchange of Thailand that in response to recent media reports about changes to the company's board, the company is preparing for the 2025 Annual General Meeting of Shareholders. This preparation aligns with legal obligations under the Public Limited Companies Act B.E. 2535 (1992) and the company's Articles of Association. The company is committed to ensuring compliance with laws and safeguarding shareholder rights, providing them with opportunities to propose meeting agenda items and nominate director candidates.
THAI is in the process of evaluating suitable individuals for board nomination, considering re-election of retiring directors or electing new candidates. The company's primary focus remains on its best interests, with possible additional agenda items for shareholder consideration.
Once the Board of Directors finalizes the details for the 2025 Annual General Meeting of Shareholders, including the agenda, the company will disclose this information through the Stock Exchange of Thailand's system, adhering to their regulations on information disclosure. Invitations will be dispatched to shareholders in accordance with legal timelines.
The company emphasized its commitment to adhering to legal standards, including the Public Limited Companies Act and the Securities and Exchange Act B.E. 2535 (1992). The preparation for the 2025 AGM underscores the importance of shareholder rights protection and compliance with legal provisions regarding director elections and shareholder decision-making authority.