THAI PLAN TO BUY NEW AIRCRAFT GETS BACKING

Corporate September 13, 2018 01:00

By The NATION

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A deputy prime minister and the finance minister are backing Thai Airways International (THAI)’s plan to procure a new fleet of aircraft to boost its competitiveness.



Finance Minister Apisak Tantivorawong said yesterday that THAI needed to procure a new fleet if it wanted to compete with foreign airlines. 

He said the National Economic and Social Development Board had not raised any objections against THAI’s procurement of 23 new aircraft worth about Bt100 billion, but wanted the airline to provide a clear turnaround plan.

Deputy PM Somkid Jatusripitak will visit THAI today to follow up on its turnaround plan, the planned procurement of new aircraft, their models and route adjustment.

Chanvit Nakornburi, deputy director-general of State Enterprise Policy Office (Sepo), said THAI provided its revised turnaround plan to the State Enterprise Policy Commission during its meeting with Sepo yesterday. The revision is aimed at turning the flagship carrier into a premium airline. 

Under the plan, which will help THAI strengthen its performance and financial status, the airline will join hands with PTT Plc to cut down on fuel costs, with Krungthai Bank to reduce financial costs and with the Tourism Authority of Thailand to promote tourism.

Separately, Prapas Kong-ied, Sepo director-general, said the Sepo meeting yesterday also acknowledged the planned merger between TOT and CAT Telecom to create the National Telecom Co. The meeting also appointed a working group to prepare the merger and complete merger plans by November for Cabinet consideration. 

The National Telecom Co should be established by February 2019.

JOINT FORUM ON AVIATION IN SOUTHEAST ASIA 

The joint forum of The International Civil Aviation Organisation (ICAO) and The European Aviation Safety Agency (EASA) on Civil Aviation in Southeast Asia, held in Bangkok yesterday, discussed the issues of joint marketing of Asean and European carriers, space management, cyber security, and the opportunity to use drone technology to enhance the aviation industry, according to Transport Minister Arkhom Termpittayapaisith, who presided over the meeting.

He added that Thailand is ready to cater to the growth of the aviation industry and is committed to develop U-tapao internaitonal airport to be the country's second largest airport.

SINGER’S RATING TURNS

‘NEGATIVE’ FROM ‘STABLE’ 

TRIS Rating has affirmed the company rating on Singer Thailand Plc at “BBB”, but revises the outlook to “negative” from “stable”. The “negative” outlook reflects Singer’s weakening asset quality which impacts its business and financial profiles.

The rating continues to reflect Singer’s strengths. 

The company has a strong brand name in the electrical home appliance market, nationwide branches and sales distribution networks, and a proven track record of financing electrical home appliance purchases.