THAI told small planes will ease debt

Deputy Transport Minister Pailin Chuchottaworn has urged THAI to procure smaller aircraft to decrease operation and maintenance costs for some of the national carrier's routes, in a bid to decrease its large debt and keep up with emerging low-cost airlines. The deputy minister commented on the airline's financial state after his scheduled policy-giving visit to THAI's headquarters yesterday, as part of a government initiative to decrease the huge debt levels at seven state enterprises. According to Pailin, THAI will have to "figure out" how to lower its overall fixed costs in order to succeed with its corporate rehabilitation plans to decrease its accumulated debt. He urged the airline to conduct research into how some low-cost airlines are able to offer full service at cheaper prices and comparatively lower fixed costs. He also instructed THAI to deal with its discharged aircraft, which are awaiting procurement by other airlines. Transport Ministry reports state that for this year, THAI plans to procure 28 more planes to compensate for its discharged aircraft. According to the report, 19 will be used by the national carrier, while the remaining nine will be used by its low-cost subsidiary airline, Thai Smile Air.<br/>