The Acquisition Plan of Aircraft Pursuant to the Corporate Plan for the Years 2005/06 to 2009/10
Thai Airways International Public Company Limited (“the Company”) held the Board Meeting No. 7/2004 on Wednesday, July 28, 2004, at the Conference Room, 22nd Floor, Head Office Building, No. 89 Vibhavadi Rangsit Road, Khwaeng Jompol, Khet Chatuchak, Bangkok Metropolis. The meeting has approved the acquisition plan of 14 new aircraft pursuant to the Company’s Corporate Plan for the years 2005/06 to 2009/10 amounted to approximately Baht 96,359 million, which will be effective after the Cabinet approves.
The company also attached the report of information with minimum required according to Annex 1 of the Notification of the Stock Exchange of Thailand Regarding Rules, Procedures and Disclosure of Information Concerning the Acquisition and Disposition of Assets of Listed Companies.
Attachment
[Translation]
Report of Information on the Acquisition Plan of 14 New Aircraft
Pursuant to the Corporate Plan for the Years 2005/06 to 2009/10
of
Thai Airways International Public Company Limited
Whereas the Board of Directors of Thai Airways International Public Company Limited (the "Company") has established a plan to acquire 14 new aircraft pursuant to the Corporate Plan for the years 2005/06 to 2009/10. The Company has to summit the report on that matter to the Ministry of Transport and the Office of the National Economic and Social Development Board for consensus and to the Cabinet for approval. The value of the aircraft acquisition is approximately Baht 96,359 million or equal to 48.91 percent of the Company's assets, according to the most recent reviewed financial statements. To comply with the Notification of the Stock Exchange of Thailand Regarding Rules, Procedures and Disclosures of Information Concerning the Acquisition and Disposition of Assets of Listed Companies, the Company would like to disclose the details of the proposed new aircraft acquisition as follows:
1. Date of implementation
Currently under the process of making report which will be submitted to concerning agencies for consensus and to the Cabinet for approval.
2. Contracting parties involved
Acquirer: Thai Airways International Public Company Limited.
Manufacturer: The Company will select manufacturer(s) that meet the operating requirements.
3. Type of assets
14 commercial passenger and cargo aircraft which will be assigned to the Company's fleet between 2005/06 to 2009/10, consisting of 7 long range medium size aircraft, 6 long range super large size aircraft and 1 super long range medium size aircraft with the following details:
3.1 7 long range medium size aircraft
Type of aircraft: For Intercontinental route.
Passenger capacity (approximated): 300 seats.
Value per aircraft (approximated): Baht 5,503 million.
3.2 6 long range super large size aircraft
Type of aircraft: For Intercontinental route.
Passenger capacity (approximated): 500 seats.
Value per aircraft (approximated): Baht 8,682 million.
3.3 1 super long range medium size aircraft
Type of aircraft: For Intercontinental route.
Passenger capacity (approximated): 230 seats.
Value per aircraft (approximated): Baht 5,748 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 March 31, 2004, the Company has the total assets of Baht 197,021 million. The acquisition of the 14 new aircraft will require approximate investment of Baht 96,359 million, representing 48.91 percent of the total assets of the Company as of March 31, 2004.
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 acquisition of 14 aircraft.
Anticipated Benefits
Pursuant to the acquisition plan under the corporate plan of the Company, the Company will be able to develop a modern, efficient and safety fleet that will meet the airline industry standard. The Company will develop the long haul fleet to support the strategic marketing plan by the expansion of network with the competitive product. Long range super large size aircraft will expand to main European route, super long range medium size aircraft will increase frequency to United State of America and long range medium aircraft will expand to Australia with modern and more comfortable. The Company expects to generate high profit, grow continuously, have solid financial position, and maintain market share. In addition, it will also permit 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.
