Thai Airways International Public Company Limited (THAI) held its Board of Directors Meeting on November 12, 2014, chaired by Mr. Areepong Bhoocha-oom, THAI’s Acting Chairman, with the following results.
1. Selection of THAI President (DD)
The Board of Directors acknowledged that the process of the Selection Committee of THAI President has followed all company regulations accordingly and accepted the unanimous decision of the Selection Committee to propose Mr. Charamporn Jotikasthira to be THAI President. The Board also assigned the Remuneration Committee to confer with Mr. Jotikasthira on the remuneration package and contract details in preparation for submitting to the Board for further consideration and approval.
Due to few applicants applying for the position of THAI President per the company’s announcements through newspapers, internal and external websites, and radio and television announcements, the application deadline had been extended to October 15, 2014, which resulted in four candidates applying. The company thereafter submitted the application documents to various government departments for scrutiny according to regulations specified in the recruiting announcement and found that two candidates could meet the requirements.
2. Future Financial Plan
As of September 30, 2014 the company and its subsidiaries have total assets in excess of total borrowings of more than 47,000 million baht. Investment plans for acquisition of aircraft and other assets is relatively high for 2012-2018. As the global economy has not seen a full recovery, the commercial airline industry continues to be adversely impacted. Along with increased competition among airlines, the company’s financial performance has fallen short of its target. However, the company is closely monitoring and proactively managing its finances and liquidity. The company currently has sufficient cash flow to sustain normal operations. For 2015, the company is planning to secure an additional 15,000 million baht in funding investments.
Achieving financial targets is highly dependent on the reform plan of the company and the success of implementing such plan which is currently being drafted which will lead to greater confidence in the company.
3. Company Reform Plan
At the Board of Directors’ meeting on September 9, 2014, the Board approved to establish a Strategy and Reform Commission consisting of THAI Board members and external experts in the area of corporate reform. The Commission together with THAI Management have been collaborating to reform the organization, which the final plan is expected to be presented to the Board of Directors in next month and to the Super Board on State Enterprises, for consideration by end of this year. Besides THAI, there are six other state enterprises that must also present their reform plan to the Super Board.