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UPDATE 1-Thai Air to take delivery of first A380s in 2012

Published 08/28/2009, 04:01 AM
Updated 08/28/2009, 04:03 AM

* First A380 to be delivered in September 2012

* To decide fund-raising plan in December

* Travel demand seen picking up in second half (Adds details)

BANGKOK, Aug 28 (Reuters) - Thai Airways International said on Friday it would take delivery of its first three A380 superjumbos from Airbus in 2012 and another three in 2013.

The airline, which is in the process of restructuring its operations and management, has already negotiated loans with foreign financial institutions to pay for the aircraft, Chairman Wallop Bhukkanasut told reporters after a board meeting.

"The first delivery of A380 aircraft will be in September 2012. Another two will be gradually delivered later in the year," he said.

In July, the airline said it had negotiated with Airbus to delay the delivery of six A380 superjumbos to December 2012 from late 2010 because of a downturn in the airline business.

The national carrier would decide in December whether to raise funds through a share issue, Wallop said, adding this was among several options the airline was considering to raise capital as part of its long-term restructuring plans.

It aimed to boost earnings before interest, tax, depreciation and amortisation (EBITDA) to 25-30 billion baht ($735-882 million) this year and made 12-13 billion baht in the first half, Wallop said. It had EBITDA of 13.6 billion baht last year.

Thai Airways is among several Asian airlines struggling to cope with reduced travel because of the global economic crisis and a surge in fuel costs last year. Political unrest in Thailand and the H1N1 flu pandemic have added to its problems.

It made a record net loss in the fourth quarter of 2008 because of the economic slowdown and Bangkok airport closures caused by political protests.

Further unrest this year has caused a big drop in tourist arrivals, but the airline expects travel demand to pick up in the third and fourth quarters, the high season for Thai tourism.

Wallop said its cabin factor -- the percentage of seats sold -- rose to more than 76 percent in August.

The state-owned airline is aiming for a cabin factor of 73-74 percent for 2009 as a whole, similar to last year's 75 percent. It reported 71.2 percent in the first half.

At the midsession break, Thai Airways shares were down 3.8 percent at 20.40 baht, while the overall Thai stock market was 0.23 percent higher. The stock has risen more than 60 percent in the past month, far outperforming a 6 percent rise in the market. ($1 = 34.00 Baht) (Reporting by Manunphattr Dhanananphorn; Writing by Khettiya Jittapong; Editing by Alan Raybould)

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