Thai Airways International Public Company Limited (SET: THAI) reported that the company had signed a contract regarding the procurement of aircraft and engines with Boeing and GE Aerospace to procure 45 middle and long ranged wide-body aircraft together with an option order for additional procurement to operate under THAI’s fleet from 2027-2033 in accordance with the plan to expand flying route.
The aim for this signing is to substitute the discharged aircraft that contracts are expiring during 2027-2033 and also to maintain market share that saw a gradual deceleration in the past decade. THAI’s market share in Suvarnabhumi Airport slumped from 51.3% in 2013 to 27% in 2023, partly due to limitations in both quality and quantity of its fleet.
Regarding the financial plan for the said procurement, THAI is well prepared while also carefully calculating its liquidity to assure a sufficiency of funding throughout the contract term.
The company will consider and designate an appropriate source of fund, depending on financial status and liquidity of the company, as well as a return of investment. The company will also be open to consider the lease format for the operation and procurement of aircraft.
More importantly, this procurement plan will not affect the company’s ability to pay its debt in accordance with the rehabilitation plan.
According to the report by Reuters on 9 September 2023, sources said that THAI were in the process of negotiation with Boeing and Airbus, two of the biggest commercial transport manufacturers in the world, to procure more than 90 aircraft to conform with the travel demand and restructure plan. Moreover, on 9 December 2023, Reuters also reported that Boeing was in advance talks to procure 80 of the Boeing 787 Dreamliner to THAI.
