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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. |
