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KTB News

10 Oct 2012

A new phenomenon as Krungthai becomes the first financial institution to support Thai AirAsia’s first aircraft purchase

A new phenomenon as Krungthai becomes the first financial institution to support Thai AirAsia’s first aircraft purchase

 10 October 2012, BANGKOK-Krungthai Bank has introduced a brand new financial service, becoming the first Thai financial institution to provide financial support for the aircraft purchase of a Thai carrier via its subsidiary - KTB Leasing.

 

          Today (10 October, 2012), Mr. Tassapon Bijleveld; CEO of Thai AirAsia, Mr. Vipoota Trakulhoon; Senior Executive Vice President of Corporate Banking Group 2 of Krungthai Bank and Mr. Phinyavat Chantrakantanond, the President of KTB Leasing, joined in a press conference to announce a triumph for Thai financial institution to facilitate the first aircraft purchase for Thai AirAsia, the first transaction of Thai bank ever in Thailand, at The Westin Grande Sukhumvit.

 

          Mr. Tassapon Bijleveld, CEO of Thai AirAsia, remarked that Thai AirAsia has been expanding rapidly to create the most extensive low-cost travel network in the region. Previously, the airline’s fleet of 24 Airbus A320-200s were under Operating Leases; however; the carrier’s 25th aircraft, which arrived in this October, has been acquired under Finance Lease with a Thai financial institution, marking a major step for Thai AirAsia’s aggressive growth in the future.

 

          Mr. Vipoota Trakulhoon spoke of this collaboration, saying that Krungthai has now brought forth a new kind of financial support in term of finance lease for Thai aviation businesses via KTB Leasing, an essential vehicle to facilitate this new financial service under the Krung Thai group. Krungthai Bank has become the first- ever Thai financial institution to facilitate the Finance Lease of a purchased aircraft, the first aircraft acquired by Thai AirAsia with the domestic source of capital in whole. This transaction will be the prototype of future financial support for Thai aviation industry, becoming a key component in sharpening Thailand’s competitive edge for the ASEAN Economic Community (AEC).

 

          Mr. Phinyavat Chantrakantanond disclosed that his company operates under the “Universal Leasing” strategy, providing financial assistance of any and all kinds to a wide range of clients; from individuals to entities. KTB Leasing’s financial assistance to Thai AirAsia in regards to its acquisition of an Airbus A320-200 is another new service that extends from the company’s know-how. As KTB Leasing has foreseen significant business potential of Thai AirAsia, the credit line of Baht 3.45 billion has been approved for Thai AirAsia’s fleet expansion at present and in the future, in which the airline has already utilized in part. KTB Leasing, in collaboration with Krung Thai Bank, could be considered as the first leasing firm in Thailand to facilitate a credit line under aircraft purchase for Thai carriers.

 

Corporate Branding & Communications Department
October 10, 2012