BA Annual 2018 EN 4C A-156.Indd
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ON PATH OF SUSTAINABLE DEVELOPMENT 50 YEARS BANGKOK AIRWAYS Stable, sustainable and continuous growth, with network of related businesses, moving forward under clear direction, through systematic coordination and outshine with its corporate identity as Asia’s Boutique Airline 50 years Bangkok Airways On path to sustainable development Sukhothai Airport The Company started construction of Sukhothai Airport, its second airport, located at Ampur Sawankaloke in Sukhothai Province. Sahakol Air Sahakol Air Co., Ltd. was established to transfer business from Airline Section 1998 in Krungthep Sahakol Co., Ltd., later to become Bangkok Airways Co., Ltd. 1989 Samui Airport The Company started construction 1986 of its first airport in Koh Samui. This is the first page that opened Koh Samui 1968 1984 as premier international tourist destination. Permission was granted to the Company to operate first flight on route Bangkok-Koh Samui and to Starting point use PG as IATA airline code. Mr. Prasert Prasarttong-Osoth founded Krungthep Sahakol Co., Ltd. and set up Airline Section in the Company. Bangkok Airways The Company started to operate scheduled flights underBangkok Airways banner and on 20 January 1986 to operate inaugural flights on three routes, Bangkok-Nakorn Rajsima, Bangkok-Surin and Bangkok-Krabi, using 18-seat Bandeirante EMB-110. 2 Annual Report 2äå¤ ã Bangkok Airways Public Company Limited Public Company Limited Member of IATA 0O'FCSVBSZ UIF$PNQBOZ To become an active member was listed in the Stock Exchange of of IATA means the Company Thailand as Bangkok Airways Public has achieved safety standard Company Limited using BA as stock of commercial airline under code. IATA Operational Safety Audit “IOSA” 2013 2000 2002 2006 2007 Royal Garuda Emblem 2007 On 9 April 2007 the Company was most proud and honored to receive Boeing 717-200 the Royal Garuda Emblem which A new type of aircraft was added to the enhanced staff morale and brought company’s fleet to increase potential great pride to all of us. for flight operation – the Boeing 717-200 can fly faster and has more seat capacity. Construction of a hangar at Don Muang Airport started at the same time. Trat Airport. Transfer operation to Suvannabhumi Airport. The Company started construction of Trat Airport, its third airport, in Trat Province, transferred operation base to Suvannabhumi Airport and expanded business to include related ground services companies namely t 8'41($BSHP t #"$ t #'4(SPVOE Fly Boutique Feel Unique 3 Contents 06 09 10 11 Message from General Information Summary Consolidated Corporate Structure the Board of Directors Financial and Ratio of the Company 12 14 18 30 Our Subsidiaries & Management Board of Directors Policy and Business Associated Companies Board of Directors and Executives Overview 43 69 78 92 Business Operations Marketing and Risk Factors Organization Chart Competition 93 122 128 130 Management Report of the Annual Change of Capital Structure Structure Nomination and the Directors and Remuneration management’s top 4 Committee securities holding 4 Annual Report 2äå¤ ã Bangkok Airways Public Company Limited 131 132 136 138 Dividend Policies of Corporate Report of the Corporate Corporate Social the Company and Governanace Governance Committee Responsibility – CSR Subsidiaries 147 149 154 157 Anti-Corruption Policy The Internal Control and Report of Related Parties the Risk Management Audit Committee Transaction 170 194 201 287 Management’s Independent Statement of financial Contact Directory Discussion and Auditor’s Report position Analysis Fly Boutique Feel Unique 5 Message from the Board of Directors Air Chief Marshal Kaset Rojananil Prasert Prasarttong-Osoth Chairman CEO 6 Annual Report 2äå¤ ã Bangkok Airways Public Company Limited In the past 50 years, Bangkok Airways Public Moreover, The Company has ordered four new ATR72- 600s to increase competitiveness in all airline service Company Limited has always committed to aspects as we’re aspired to continue our legacy as the a stable and sustainable growth with an aim 8PSMET#FTU3FHJPOBM"JSMJOFGPSZFBSTUPDPNF to provide service as the best regional airline. This year, Bangkok Airways has introduced a new route: Of late, The Company took our pride amidst Chiang Mai – Hanoi. This is one of Bangkok Airways’ route network strategies to expand our reach into the recognitions in the travel industry especially CLMV (Cambodia, Laos, Myanmar, Vietnam) by using by the Skytrax Awards in winning “The World’s Suvarnabhumi, Samui, and Chiang Mai as our hubs. The Company has also increased flight frequency on routes Best Regional Airline 2018” and “The Best between Bangkok – Phu Quoc, Bangkok – Vientiane, and Regional Airline in Asia 2018.” Bangkok – Mandalay. These cities are the region’s top tourist destinations as well as potential commercial hubs. Throughout 2018, Thailand’s tourism industry has 'PS$PEFTIBSF"HSFFNFOU 5IF$PNQBOZIBTGVSUIFS progressed in a constant growth. Thus, the overall signed with new airline partners which are Oman Air, industry maintained a strong performance especially Lao Airline, Jet Airways, and Philippines Airline to from the increasing Asian markets in spite of the Chinese expand our routes in response to the travel needs of market’s downturn in the third quarter. However, in the passengers. Presently, The Company is in partnership past year, even with a fluctuation in the oil price, The with over 27 airlines. Company’s performance remained in a satisfactory level in comparison with its competitor set. Besides On behalf of the Directors, Executives, and all staff, the commercial aviation business, our joint-ventured we’d like to thank our clients, business partners, and #BOHLPL'MJHIU4FSWJDFT$P -UEBOE#BOHLPL"JS all shareholders who have always supported and Catering Co., Ltd. have also shown growth. Bangkok Air believed in the performance of The Company throughout Catering Co., Ltd., in particular, expanded its in-flight the years of running an airline business. The Company catering facilities to Phuket and Samui Airports, with focuses on service with the highest safety standard an upcoming plan for Chiang Mai. These are additions for our passengers and all the personnel in charge. to its current facility at Suvarnabhumi Airport. The management and all staff are aspired to work hard in order for The Company to obtain a status as a leading The Company also announced a partnership with airline in Asia under the vision of “Committing to #PSVTTJB%PSUNVOE'PPMCBMM$MVCBTBNBSLFUJOH service excellence to become the best airline in Asia.” strategy to further raise Bangkok Airways’ brand 8FXJMMDPOUJOVFUPXPSLXJUIBEFUFSNJOBUJPOUP awareness in the regional level. This ads campaign and successfully achieve our goal under a good governance promotions are seen in Thailand, Southeast Asia, China, principle. Hong Kong, India, and Bangladesh. Remark : Mr. Prasert Prasarttong-Osoth resigned from the position as Vice Chairman, Chairman of Executive Management Committee, CEO on January 23rd, 2019 Fly Boutique Feel Unique 7 8 Annual Report 20å8 ã Bangkok Airways Public Company Limited General Information Company Name Bangkok Airways Public Company Limited (the “Company”) Head Office Core Business 99 Mu 14 Vibhavadirangsit Road, The Company’s core business are Chom Phon, Chatuchak, 1. Passengers airline business including freight domestically Bangkok 10900 and internationally 2. Establishment of public airport and/or operate and manage public airport, rent out space including other activities relating to the establishment and operation of airport Registration Number Registered Capita 2,100,000,000 Baht Telephone Facsimile Website (66) 2 265 5678 (66) 2 265 5775 www.bangkokair.com Shares Registrar Thailand Securities Depository Co., Ltd. 5IF4UPDL&YDIBOHFPG5IBJMBOE#VJMEJOH 3BUDIBEBQJTFL3PBE %JOEBOH #BOHLPL 5IBJMBOE Telephone Facsimile Website (66) 2 009 9000 (66) 2 009 9991 http://www.set.or.th/tsd Company’s Auditor EY Office Limited rd 'MPPS -BLF3BKBEB0óDF$PNQMFY 3BUDIBEBQJTFL3PBE ,MPOHUPFZ #BOHLPL Telephone Facsimile Website (66) 2 264 9090 (66) 2 264 0789-90 www.ey.com Fly Boutique Feel Unique 9 Summary Consolidated Financial and Ratio Unit : THB million Year End December 31 2018 2017 2016 Total Assets 62,067 57,942 60,289 Statements of Total Liabilities 29,556 Financial Position Total Shareholder’s Equity Revenue from airline business 20,475 20,491 Statement of Sales and service income 4,082 comprehensive Total Revenue 27,944 26,766 Income EBITDAR 4,041 6,571 Profit for the year 264 846 Registered and Paid up Shares (Million share) 2,100 2,100 2,100 Shareholder’s Equity Book Value (Baht) 14.7 15.2 Earnings Per Share (Baht) 0.1 0.4 0.8 Current Ratio (Time) 1.4 1.7 1.9 Quick Ratio (Time) 4.5 Liquidity Ratio Collection Period (Day) 24.4 25.6 25.8 Stock Turnover Period (Day) 8.2 6.9 6.4 Payment Period (Day) Gross Profit Margin (%) 11.2 11.4 22.7 Operating Profit Margin (%) 4.4 15.1 Profitability Ratio EBITDAR Margin (%) 15.1 Net profit Margin (%) 0.9 6.9 Return on Equity (%) 0.9 2.8 5.8 Return on Assets (%) 0.4 1.4 Efficiency Ratio 3FUVSOPO'JYFE"TTFUT 11.0 15.5 26 Asset Turnover (Time) 0.5 0.5 0.5 Debt to Equity (Time) 1 1 0.9 Leverage Ratio Interest Leverage Ratio (Time) 1.2 2.7 10 Annual Report 2018 ã Bangkok Airways Public Company Limited Corporate Structure of the Company, Bangkok Air BATC Aviation Training our Subsidiaries and Associated companies 99.99% Center Co., Ltd. as of December 31, 2018 MOR More Than Free 99.99% Co., Ltd. Bangkok Airways Ground Services Co., Ltd. GP Gourmet Primo PGGS 99.99% Co., Ltd. (GP) 99.99% Samui Airport SPF BAH Bangkok Airways Property Fund 30.03% 99.99% Holding Co., Ltd. Bangkok Airways Public Co.,Ltd. Worldwide Flight Services Bangkok Air Ground BFS Handling Co., Ltd. Cargo BAC Bangkok Air 49.00% 90.00% Catering Co., Ltd. 49.00% BFS Cargo BFS DMK Worldwide Flight Services Ground Bangkok Air Ground 98.88% BACGH BAC Gourmet Handling Co., Ltd.