Published on : Monday, April 25, 2016
Mr. Areepong Bhoocha-oom, Chairman of the Board of Directors, Thai Airways International Public Company Limited , presided over the Company’s Annual General Shareholders’ Meeting 2016, with the attendance of THAI Board of Directors, THAI Management and shareholders, covering the following agenda:
1. Operating Results for 2015
At THAI’s 2016 Annual General Shareholders’ Meeting, the operating results for 2015 were acknowledged. Since the first quarter of 2015 THAI implemented the Transformation Plan approved by the State Enterprise Policy Committee on 26 January 2015. The Transformation Plan in the first phase aimed to stop the bleeding by reducing flight frequency and/or discontinuing non-profitable routes, cutting unnecessary cost items, generating revenue by adjusting sales strategies, increasing ancillary revenues and enhancing product and services competitiveness. This included personnel cost restructure in order to reduce long-term human resource costs in the long run.
THAI received seven new aircraft while decommissioned 15 aircraft following the fleet rationalization strategy resulting in 95 aircraft outstanding as of 31 December 2015 which was a decrease from 102 aircraft in 2014. Nevertheless, the network rationalization strategy resulting in adjusting flight frequency and change of aircraft to match the passenger demand caused more effectiveness on aircraft utilization causing (a) increasing Available Seat-Kilometer: ASK by 0.6%, (b) increasing Revenue Passenger-Kilometer: RPK by 6.5%, (c) increasing cabin factor to an average of 72.9% comparing with 68.9% in 2014, and (d) increasing in number of passengers carried to 21.25 million passengers or an increase of 11.3% from the previous year.
Strictly following the strategic and transformation plans which were closely monitored by the Management and Board of Directors, THAI and its subsidiaries reported a 2015 operating loss of THB 1,304 million from airline business, compared with THB 21,715 million or 93.4% improvement from the same period the previous year due mainly to 11.2% total expense reduction on the back of fuel expense and non-fuel expense resulting from cost management initiatives. Total revenue declined by 1.2% from 2014 mainly from 1.5% reduction in passenger revenue and 21.0% reduction in freight revenue. The main reasons for revenue decline were due to high competition, drop in fuel surcharge and strength in the Baht compared to major currencies.