 |
 |
Report of Information on the Procurement Plan of Five New Aircraft Pursuant to the Corporate Plan for the Years 2000/01 to 2004/05 Of Thai Airways International Public Company Limited
Where as the Board of Directors of Thai Airways International Public Company Limited (the "Company") has established a plan to procure five new aircraft pursuant to the Corporate Plan for the Years 2000/01 to 2004/05 which has already been approved by the Cabinet. According to the most recent reviewed financial statements, the value of the aircraft procurement is equal to 19.22 percent of the Company's assets. To comply with the Notificaton of the Stock Exchange of Thailand Regarding Rules, Procedures and Disclosures of Acquisitions and Disposals of Assets of Listed Companies, the Company would like to disclose the details of the proposed new aircraft procurement as follows:
1) Date of implementation Currently under negotiation
2) Contracting parties involved Procurer: Thai Airways International Public Company Limited. Manufacturer: The Company will select manufacturer(s) that meet the operating requirements.
3) Type of assets Five commercial passenger and cargo aircraft which will be assigned to the Company's fleet between 2000/01 to 2004/05, consisting of one medium-range aircraft and four long-range aircraft, with the following details:
3.1) One medium
Range aircraft Type of aircraft: For Regional Route.
Passenger capacity (approximated): - seats.
Value per aircraft (approximated): Baht 6,183 million.
3.2) Four long
Range aircraft Type of aircraft: For Intercontinental Route.
Passenger capacity (approximated): - seats.
Value per aircraft (approximated): Baht 6,340 million.
Remark The value of aircraft was evaluated pursuant to the international practice of the purchases and sale of new aircraft in the industry.
4) Size of transaction As of 30 June 2000, the Company has the total assets of Baht 164,083 million. The procurement of the five new aircraft will require an investment of Baht 31,544 million, representing 19.22 percent of the total assets of the Company as of 30 June 2000. The transaction is thereby categorized as type 2 transaction under the Notificaton of the Stock Exchange of Thailand Regarding Rules, Procedures and Disclosures of Acquisitions and Disposals of Assets of Listed Companies.
5) Source of Funding and Terms of Payment The Company will consult and enter into agreement with the Ministry of Finance regarding source of funding for the procurement of the five aircraft.
6) Anticipated Benefits. Pursuant to the procurement plan under the corporate plan of the company, the Company will be able to develop a modern fleet and safely standard that meet the standards of airline industry. The type of aircraft, engine and pilot will be structured to meet the 7/7/7 format to reduce operating costs and increase the competitiveness of the Company. It will also allow the Company to support various marketing plan to achieve the various strategic objectives of the operating, especially the expansion of service networks into the highly competitive intercontinental and regional services. This will support the Company to be in the top ten lending airlines of the world and the top three leading airlines in Asia, both in terms of quality and service efficiency, while generating continuously high profits, having solid financial position, and maintaining market share. In addition, it will also permit the Company to realize its vision as "The First Choice Carrier: Smooth as Silk the First Time Every Time."