THAI confident of 2010 revenue surge

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THAI confident of 2010 revenue surge 
Bangkok Post: 3 Dec 2009
THAI confident of 2010 revenue surge
Reduction in fuel costs could be a big help

Thai Airways International is aiming for a 20% revenue increase and a pre-tax profit of 4.3 billion baht next year.

THAI's board and management adopted the new target as part of its five-year strategic plan to end the flag carrier's financial woes and put it back on track as a leading global airline.

Next year, the airline targets revenues of 193 billion baht, a 20.7% rise over this year's expected total of 153 billion baht.

A target of 32 billion baht was set for next year's pre-tax earnings.

THAI hopes to fill 74% of its seats next year with an 11.4% increase in freight production and a 14% increase in freight revenue.

Next year's ambitious target will test the effectiveness of both the current business rehabilitation plan and the carrier's new president Piyasvasti Amranand.

Co-operation from senior executives and the firm's 26,000 workers will be a key factor to the plan's success, analysts said.

A slow recovery in air travel demand, buoyed by the bottoming-out of the global recession, would help support the airline's performance next year, though competition among carriers will continue to be fierce.

The carrier expects a 15% reduction in fuel costs this year to 11.84 billion baht, which would help its financial rehabilitation.

Mr Piyasvasti said next year will see an improvement on 2009 but there was no guarantee THAI would break even.

For the first nine months of this year, THAI posted a net loss of 1.57 billion baht (0.92 baht a share), improving from 6.61 billion baht (3.89 baht a share) losses in the same period last year.

The airline reported a loss of 21.38 billion baht last year, its first-ever loss in 43 years, due partly to poor fuel hedging.

Meanwhile, the THAI board is expected to endorse the 2010-14 strategic plan on Dec 18 after the roadmap, which was agreed in principle last Saturday, has been fine-tuned.

The plan sets to re-establish THAI as one of Asia's top three airlines and among the world's best five carriers within two years.

THAI shares closed yesterday on the Stock Exchange of Thailand at 17.60 baht, down 70 satang, in trade worth 151 million baht.

Writer: Boonsong Kositchotethana

www.bangkokpost.com/business/aviation/28528/thai-confident-of-2010-revenue-surge