Bangkok: Thai Airways International (THAI) is advancing its ambitious plan to expand its fleet to 150 aircraft by 2023, emphasizing that the acquisition of new aircraft will proceed without political interference. The airline is also moving forward with a significant joint investment in a maintenance, repair, and overhaul (MRO) center at U-Tapao Airport, in collaboration with Bangkok Airways, as part of its strategy to achieve a revenue target of 400 billion baht by 2023.
According to Thai News Agency, Mr. Lawaron Sangsanit, Permanent Secretary of the Ministry of Finance and Chairman of THAI, announced that the company's aircraft procurement plan is independent of US import tariffs and that the purchase price for 45 Boeing aircraft has already been finalized. An additional 35 aircraft are planned for future acquisition, potentially also from Boeing, with deliveries expected by early 2028 due to production delays.
The discussions regarding US tariff negotiations included the potential purchase of 80-90 additional US aircraft. However, Thai Airways has clarified that the remaining 35 aircraft are still under consideration, and the ultimate decision will align with the company's long-standing business plan, not political pressures.
Mr. Chai Iamsiri, CEO of THAI, expressed optimism about the company's financial outlook, highlighting that shares are appealing to value investors. THAI has met its revenue goals for the first half of the year and anticipates steady performance in the latter half, despite a decrease in tourist numbers. The airline remains focused on long-haul business travelers, with a minor emphasis on tourist passengers, particularly from China. THAI has maintained profitability for ten consecutive quarters, which positions it to potentially distribute dividends if net profits are realized.
Mr. Chai further noted that while THAI is committed to expanding its fleet to 150 aircraft by 2023, the decision on the aircraft manufacturer remains with the company, free from governmental influence. The strategic fleet expansion will support increased market share at Suvarnabhumi Airport and boost revenues to meet targets.
Regarding the MRO center at U-Tapao Airport, THAI has received an invitation to participate and plans to invest approximately 10 billion baht in the project, with construction slated to commence by 2027. Bangkok Airways will join as a co-investor in this strategic venture.
On the financial front, THAI shares reopened at 10.50 baht on the Stock Exchange of Thailand after a successful rehabilitation process. The shares are trading without a ceiling or floor price on the first day, allowing market forces to dictate the stock movement. Strategic shareholders are restricted from selling a significant portion of their shares for one year, with a gradual release permitted after six months.
The Thai Futures Exchange continues to suspend trading of THAI Futures due to prolonged suspension, affecting the assessment of price volatility and liquidity. Consequently, short selling of THAI securities remains prohibited, aligning with regulatory standards.