Thai Airways International Ready to Battle World Fuel Situation

Thai Airways International today confirmed its readiness to handle the fuel situation in case war breaks out between the US and Iraq. THAI said it had more than 45 days of fuel reserve for the airline’s flight operations.

Kanok Abhiradee, President, Thai Airways International said that the fuel situation for THAI flight operations is maintained at normal level at every station worldwide. However, THAI has already set up measures in case of war between the US and Iraq. THAI has fuel supply agreements with all major international oil companies worldwide while these oil companies have legal obligations to reserve a minimum stock for between 30-180 days.

In addition, THAI has been coordinating with its fuel suppliers worldwide to ensure that fuel will be available to Thai Airways International in case war causes prolonged shortage of fuel. In most cases, oil reserve is being kept at a higher level than the minimum level set by the governments and it is expected that there should be no shortage of aviation fuel.

For the fiscal year 2002/2003 (Oct’02-Sep’03), THAI has allocated budget for fuel expense based on the estimated crude price of 27-29.5 USD per barrel. This year’s fuel expenses account for approximately 19 per cent of the company’s total operating costs. During the first four months of this budget year 2002/03, the cost of aircraft fuel is lower than budget by 678 million Baht.