David Fullbrook/BANGKOK
Thai Airways International shareholders have approved the appointment of a new board, allowing the airline to move forward with key decisions on new aircraft, routes and a long-term development plan – although the partial privatisation of the carrier looks to be as far away as ever.
Uncertainty has dogged Thai since its 15-member board resigned on 1 April, the carrier having become a political football. The resignations were ostensibly to allow deputy transport minister Pracha Maleenont to appoint more experienced replacements and so improve competitiveness, but industry observers and Thai's labour union suspect Pracha wanted to load the company's board with allies.
Airline president Bhisit Kuslasayanon himself reportedly only made it back onto the board after the finance ministry, which holds 93% of Thai's stock, leant on Pracha, forcing him to drop close friend Brian Marcar.
Though the board includes privatisation specialist M L Subhasiddhi Jumbala, the new Thai Government - which came into power in January - seems determined to keep local companies in state hands, and it is unlikely that Thai's long-delayed privatisation will go ahead by mid-year as planned.
The government is also reluctant to sell shares with the local market depressed and the investment climate gloomy given the impact on Thai of high fuel prices, and uncertainty linked to the US economic slowdown.
Thai is meanwhile pondering the purchase of ultra-long-range Airbus A340-500s to fly transpolar routes to the eastern USA, says transport ministry permanent secretary Srisook Chandrangsu. Thai vice president sales and industry Veerawat Chotiros adds: "If an aircraft is available and the route is open, I think Thai would be fit for the race. We have to keep up with the industry."
The company, which has no dedicated cargo aircraft, is also studying the conversion into freighters of a few passenger aircraft from a number of Boeing 
747-300s, MD-11s and Airbus A300-600s slated for retirement.
Though cargo growth forecasts have been cut to 5-6% owing to slowing economic growth worldwide, Thai vice president cargo and mail Kawin Asvarchatroj believes conditions will improve by the end of the year, and says the airline will make a decision in the next few months as part of its new long-term strategy.
Thai plans to add more international passenger flights before then, but Pracha wants loss-making domestic routes cut. Despite suffering losses due to the weak baht and high fuel prices, Thai expects to edge into profitby the beginning of next year, says Veerawat.
The carrier also aims to launch services to Mumbai with its winter schedule, using Airbus A330-300s or A300-600s. Other Asian routes and some secondary European destinations - including Munich - will be served more regularly, while Chengdu and Haikou in Chinaare set to figure in Thai's long-range plans.
Codeshares with Star Alliance partners Air New Zealand and Ansett begin in June or July, and Thai hopes to co-operate with Myanmar Airways. It will also be among the first carriers to fly to Europe north of the Himalayas via China and Russia, easing congestion further south.
Source: Flight International
