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Bangkok Post - Board approves THAI boss" performance, defers new aircraft plan
Board approves THAI boss' performance, defers new aircraft plan

Board approves THAI boss' performance, defers new aircraft plan

Thai Airways International board chairman Ekniti Nitithanprapas (left) says THAI president Sumeth Damrongchaitham (right) has passed the board's evaluation. (Bangkok Post file photo)
Thai Airways International board chairman Ekniti Nitithanprapas (left) says THAI president Sumeth Damrongchaitham (right) has passed the board's evaluation. (Bangkok Post file photo)

The Thai Airways International board has given the nod to president Sumeth Damrongchaitham's performance, but has directed the airline to review a plan to add new aircraft to the fleet for another six months.

THAI board chairman Ekniti Nitithanprapas said on Wednesday the board had approved the performance of the president as the board members were satisfied with his attempt to rescue the flag carrier at a time when the airline is encountering problems inside and outside the country.

The airline posted a net loss of 6.44 billion baht for the first half of the year, compared with 381 million baht in the same period of last year.

The airline continued to encounter stiff competition from low-cost rivals on domestic and internatiional routes. The drop in tourist arrivals and the baht's appreciation exacerbated its problems.

Although Mr Sumeth passed the evaluation, the board directed him to come up with better plans to boost revenue, setting a benchmark for the next appraisal in six months' time.

The THAI president blamed ageing planes that consume more jet fuel and higher maintenance costs as factors leading to the loss and making the airline less competitive and attractive to passengers.

The airline is considering buying or leasing 38 new jets worth 156 billion baht to modernise the fleet and make it more efficient.

But the plan will be delayed for another six months as the chairman said on Wednesday the board wanted airline executives to present more persuasive arguments for the need for the new fleet in the changing aviation industry. The airline needed to review the financial resources to be used for the buying and leasing plans, he added.

The board's opinion followed the same line as the Transport Ministry as it hoped for better planning for the new aircraft project.

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