David Fullbrook/SINGAPORE
Thai Airways International shareholders will elect a new board of directors at a meeting on 1 May . The current 15 member board sits in a caretaker capacity after their resignation on 1 April.
With only 7% of the company traded on the Thailand Stock Exchange, the board is effectively appointed by the government. The finance ministry holds 93%.
The new board will probably include more businessmen and professionals instead of being crammed with civil servants and generals. Prime minister Thaksin Shinawatra, a telecoms tycoon, wants a leaner Thai pursuing commercial aims, free from politicians who in the past have been blamed for corruption at the carrier.
Meanwhile Thai's recently appointed president, Bhisit Kuslasayanon, will continue to lead the airline's management team despite resigning from the board.
Thai has recorded losses for the last three quarters, partly due to management's failure to hedge fuel costs.
Despite the upheaval, Bhisit insists partial privatisation slated for mid-year will go ahead, but the sale may be delayed by the changes. Under the plan 13% will be offered to Thais and possibly foreigners.
A further 10% is earmarked for a strategic airline partner, but as this is deeply unpopular among Thai's management and Thaksin prefers to keep state companies in Thai hands, it may well be shelved.
Board members resigned on 22 March to give deputy transport minister Pracha Maleenont a free hand in nominating board members. Some also resigned to accept responsibility for the unsolved blast which destroyed a Thai Boeing 737-400 on the ground at Bangkok airport on 3 March. A spontaneous explosion of the centre fuel tank now appears the most likely cause.
Source: Flight International
