THAI to procure over three dozens new planes

BANGKOK, January 17 (TNA) - The Thai Airways International (THAI) Board has approved a new procurement plan of 38 passenger planes, totally worth about 200 billion baht, to replace an old aircraft fleet of the national flag carrier that will be discharged. THAI President Sumet Damrongchaitham told journalists of the decision on January 16, after a meeting of the THAI Board, noting that the new aircraft procurement plan needs to be finally approved by the Thai Cabinet. "THAI is now required to submit the new aircraft procurement plan in details to the Ministry of Transport by early next week to be then forwarded to the Office of the National Economic and Social Development Board (NESDB) and the Thai Cabinet for further consideration and a final approval", Sumet explained. According to the THAI president, the newly-procured aircraft fleet will increase the cabin factor of the national airline by about 3 per cent annually over the next 7-8 years and will increase its passenger planes to 110 totally. The THAI president stated that the new procurement plan will also enhance the national airline's comparative advantage in terms of its compact but competitive aircraft fleet although THAI may face an inflexible management challenge with a higher cost in case of a crisis, like a need to cancel flights. The THAI president said pending the commission of the new aircraft fleet, two leased 300-seat planes will serve the national airline's passengers, representing an increase in the cabin factor by 1 per cent per plane. Besides, THAI will raise more revenues through its Catering Department, as well as its in-flight sale of products and its aircraft maintenance centers at the Don Mueang International Airport in Bangkok and the U-Tapao International Airport in the eastern Rayong Province. (TNA)