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THAI Holds Annual General Shareholders’ Meeting 2014

May 1, 2014 Financial No Comments Email Email

Today (29 April 2014) at 13.30 hrs., at Air Force Convention Hall (Thongyai Building), Air Chief Marshal Prajin Juntong, Chairman of the Board of Directors, Thai Airways International Public Company Limited, presided over the Company’s Annual General Shareholders’ Meeting 2014 (AGM), with the attendance of THAI’s Board of Directors, Management and shareholders, covering the following agenda:

1.  Performance for Year 2013

At the Annual General Shareholders’ Meeting, the AGM acknowledged the performance for year 2013, as well as approved the statement of financial position and statement of comprehensive income for the period ending 31 December 2013.

In 2013, demand for air travel continued to see robust growth with the global economy showing signs of recovery but competition for air travel service providers also intensified with the launch of new airlines and capacity additions for existing carriers with new aircraft enhancing competition in terms of cost/efficiency and product quality. Passenger production was 8.1 percent higher than last year and passenger traffic increased 4.6 percent. Fourth quarter results (4Q2013) was weaker as a result of intensified competition, the result of the Chinese Government enacting the Chinese National Tourism Law affecting international tour/package prices and resulted in a decrease in Chinese tourists and further dampening of air travel demand to Thailand was the political stand-off also intensified during the peak travel season in the fourth quarter of 2013.  Cabin factor for THAI averaged 74.1 percent for the entire year, which was a decrease from the 76.6 percent posted the year before.

On the cargo side, air cargo demand has been impacted by the global recession since 2011 together with the increase in belly production from THAI’s fleet expansion along with that of other airlines have increased competition for market share in the face of lower volume of air freight resulting in lower than expected cargo volume on all of THAI’s routes.  Freight load factor decreased from 54.2 percent in 2012 to 51.1 percent in 2013.

The strengthened Thai Baht during fiscal year 2013 had a negative impact to the operating results as a major proportion of revenue and expenses is in foreign currency, which is another factor bearing greater affect on THAI’s revenue when translated into Baht terms than expenses.  THAI and its subsidiaries’ financial performance in 2013 showed a loss before foreign currency exchange and income tax (excluding impairment loss of aircraft and assets) of THB 3,608 million, compared to THB 4,662 million reported profit last year (profit of THB 4,434 million if Nok Air is excluded).

In 2013 (January to the end of December 2013), the Company and its subsidiaries’ consolidated total revenues amounted to THB 211,605 million and recorded a net loss of THB 12,000 million, compared to net profit of THB 6,510 million in 2012 which includes THB 9,321 million in non-operating losses.  The non-operating charges include aircraft value impairment charges and impairment charges against other assets totaling THB 5,426 million along with a consolidated loss on foreign currency exchange of THB 3,895 million earning a net loss of 5.52 baht per share in 2013, compared to a profit of 2.85 baht per share earned in 2012.

As of December 31, 2013, THAI and its subsidiaries’ total assets were THB 307,085 million, an increase of THB 2,989 million or 1.0 percent from 31 December 2012.  Total liabilities as of 31 December 2013 for the Company and its subsidiaries was 250,166 million, an increase of THB 15,888 million or 6.8 percent from 31 December 2012.  Furthermore, as of 31 December 2013, shareholders’ equity totaled THB 56,919 million, a decrease of THB 12,899 million from 31 December 2012.

2.  Distribution of Dividend

At the Annual General Shareholders’ Meeting, shareholders approved to suspend payment of dividend in reflection of the Company’s financial performance in 2013. The suspension of dividend payment is in accordance with the Company’s dividend policy providing that the Company shall distribute “not less than 25 percent of the consolidated net profit before gains or losses on foreign currency exchange and shall also be subject to future investment plans, financial needs and suitability in ensuring the Company’s future.” 

3.  Selection of Board of Directors

At the Annual General Shareholders’ Meeting 2014, the following Directors retired by rotation:

1.      Mr. Ampon Kittiampon

2.      Mr. Chutinant Bhirom Bhakdi

3.      Mr. Dheerasak Suwannayos

4.      Mr. Sutham Siritipsakorn

5.      Mr. Sorajak Kasemsuvan (resigned on 2 January 2014)

At the Annual General Shareholders’ Meeting, the following three Directors were reappointed for another term:

1. Mr. Ampon Kittiampon

2. Mr. Dheerasak Suwannayos

3. Mr. Sutham Siritipsakorn

At the Annual General Shareholders’ Meeting, it was approved to appoint the following two Directors to replace those who retired by rotation:

1. Mr. Rungson Sriworasat (to replace Mr. Sorajak Kasemsuvan)

2. Air Chief Marshal Siwakiat Jayema (to replace Mr. Chutinant Bhirom Bhakdi

Attending THAI’s Annual General Shareholders Meeting were 4,699 shareholders, representing  1,627,997,664  shares.

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