Thai Airways International (THAI) has vowed to ramp up ticket sales in the second half of this year to meet increased passenger capacity on its newly procured aircraft.
THAI president Sorajak Kasemsuvan said Wednesday the airline will receive the first batch of 17 new planes this year, which should increase the airline's passenger capacity by 9%.
"We must increase sales to match the mounting number of seats so our revenue will reach its target," Mr Sorajak said.
THAI is also considering reducing its second-phase procurement of aircraft from 38 to 21 planes because of changing business circumstances and debt reduction efforts, he said.
The proposal will be submitted to the THAI board for approval next Friday.
The aircraft will be delivered to the company between 2018 and 2022.
A Transport Ministry source said the national carrier's turnover was far below target in the second quarter of this year as a result of unfavourable exchange rates and a weaker-than-expected company performance, particularly in its cargo operations.
There was only slight growth in THAI's turnover in the second quarter, the source said, adding that third-quarter forecasts were worrisome. THAI's business strategy should change, the source said.
However, in the first quarter of 2013, THAI earned a net profit of 8.28 billion baht, an increase of 58% from 5.22 billion in the same quarter a year earlier.
However, in the first quarter of 2013, THAI earned a net profit of 8.28 billion baht, an increase of 58% from 5.22 billion in the same quarter a year earlier.THAI senior executive vice-president Chokchai Panyayong said the airline will update its flight routes and schedules within a week to boost the company's earnings.
Revenue growth is projected to hit 11% this year with a profit target of 6 billion baht, he said.
Mr Chokchai said the aviation industry is competitive because of an influx of new airlines.
He said THAI's flight schedule will be changed to meet market demand, adding it must find ways to attract as many customers as possible in the next five to six months to bolster revenue.
A new commercial executive committee chaired by Mr Sorajak will be set up to monitor business conditions every week, he said. More routes will be added to Japan, particularly to Sendai and Hiroshima, and to Changsha and Chongqing in China, Mr Chokchai said.
Up to 50% of THAI's revenue will be generated in Asia this year, followed by 40% in Europe and 10% from domestic flights, he added.
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- Writer: Amornrat Mahitthirook