THAI Announces Board Meeting Results
Thai Airways International Public Company Limited | May 09, 2007
On May 9, 2007, Thai Airways International Public Company Limited held a Board of Directors' Meeting, chaired by Air Chief Marshal Chalit Pukbhasuk, THAI's Chairman, at THAI's Head Office, with the following results:
1. THAI's Financial Results for The First Half of Fiscal Year 2007
THAI's financial results for the first half of fiscal year 2007 (October 1, 2006 - March 31, 2007) showed that THAI achieved a net profit of 8,259 million baht, a decrease of 1,755 million baht or 17.5 percent compared to the same period last year. Earnings per share are 4.86 baht compared to 5.89 baht in 2006.
THAI's second quarter results for fiscal year 2007 (January 1 - March 31, 2007) showed that THAI achieved total revenue from the sale of goods and services amounting to 49,597 million baht, an increase of 7.6 percent compared to the same period last year. THAI's operating costs reached 43,420 million baht, an increase of 7.1 percent compared to the same period last year. As a result, profit from the sale of goods and services was 6,177 million baht, an increase of 592 million baht or 10.6 percent compared to the same period last year. THAI achieved pre-tax profit of 6,084 million baht, a decrease of 2,747 million baht compared to the same period last year due to strong Thai currency. As a result, net profit was 4,233 million baht, a decrease of 1,972 million baht compared to the same period last year, or is equivalent to 31.8 percent.
2. Trends of Aviation Industry in The Third Quarter
The third quarter result is expected to decline due to the low season and high competition of the aviation industry in Thailand. As a result, THAI's Board of Directors agreed and requested the management to review the existing route network and company's asset management to increase income and reduce expenses. Also, the management is required to develop greater service quality in order to ensure total customer satisfaction.
3. Approval of Loans
THAI's Board of Directors approved loans of 17,000 million baht, concurring with the company's request as follows:
Loan of Yen from a financial institution in one or more loans (approximately 3,000 - 6,000 million baht)
Baht debenture shares in Thailand given once or more and/or loan of baht from one or more national financial institutions for a total of 11,000 - 14,000 million baht
However, if the company is not able to procure a loan in due time, the loan can be in the form of Euro Commercial Paper (ECP) by Thailand's Ministry of Finance on a short-term basis. In this regard, prior to the procurement of loan, the management is required to submit names of selected financial institutions to the Board of Directors for further consideration.