Thai Airways Proposes 156 Billion Funding

Business

Tourism continues to be a major contributor to the economy of Thailand with businesses such as a 4 star hotel in Phuket bringing in revenue. This is why a proposal was recently submitted by Thai Airways International to the cabinet asking for a 156 billion baht funding to be used in purchasing or leasing around 38 more planes. According to the proposal, 31 planes will be purchased within five years.

Sumeth Damrongchaitham, president of Thai Airways, said that the proposal will be submitted to Somkid Jatusripitak who is currently the Deputy Prime Minister. They are expecting it to reach the Cabinet before the month ends.

According to Khun Sumeth, they will acquire the new planes either by buying or leasing. They are going to purchase a combination of jets with both wide and narrow bodies. The proposal is divided into two phases. The first one will include purchasing of 31 planes as replacement for the old models and it will be spread out in five year. They will purchase seven more aircraft for the second phase in order to strengthen their fleet.

The airline management is also requesting the board to grant a new route between Bangkok and Sendai. If approved, the first flight will be scheduled on November which is right around the peak season. They are also considering the Bangkok and Manchester route but the airline president thinks that a thorough research is needed before making a decision.

He is also hoping that the airline will be able to get back on their feet through the funding. The goal is for them to get back to the trading scene and hopefully start profiteering again at the middle of year 2020. It is no secret that Thai Airways has been through a lot in the last ten years. They have been struck with challenges coming from the rise in local competition. Ever since the introduction of a number of budget airlines, they have to cut down on the passenger loads as well as their earning capacity.

As Thailand remains to be one of the top destinations all over the world, hotels and accommodations the like of a 4 star hotel in Phuket is positive that they will be able to recover soon.