Thai International wants to take full ownership of a proposed national all-cargo operator being set up to tap into the impressive 15 per cent growth in freight traffic - almost double the annual rise in passenger numbers.
Thai's management is proposing to set up the as yet unnamed cargo carrier with private sector interests invited to invest later. The Bangkok flag is to appoint consultants to study the investment and management strategy for the new airline, assessing two options including full ownership. The second option would see Thai taking 49 per cent and local business and foreign airlines 51 per cent. Thai's vice president commercial Bhisit Kuslasayanon proposes to limit the choice of foreign airline partners to operators which already have links with Thai, but added the initial full-ownership option is 'more practical'.
Thai's main alliance partners, Lufthansa and United Airlines, would be prime candidates as they are planning a major Asia Pacific cargo hub in Thailand. The operation will operate through U-tapao airport in Chon Buri province, near a proposed international production and transport centre, Global Trans Park.
Meanwhile, with Thai's underperforming stock beginning to rally - Lehman Brothers has given it a buy recommendation - the carrier ordered another nine Airbus aircraft in May, bringing its aircraft purchases this year to US$2.1 billion, part of a $4.3 billion fleet upgrade.
The Ministry of Finance has already approved a Y30 billion tranche of samurai bonds to raise funds and plans to issue 200 million shares to finance Thai's expansion.
Tom Ballantyne
Source: Airline Business
