Thai Airways International PCL's (THAI.TH) board has approved plans to procure seven Airbus 330-300's and eight Boeing 777-300ER aircraft as the national carrier seeks to modernize its fleet which some analysts say now lags behind many of its regional rivals.

President Piyasvasti Amranand declined to provide a price tag for the procurement plan.

He told reporters Friday that Thai Airways will acquire the Airbus aircraft via financial lease--with two to be delivered in 2011, three in 2012 and two in 2013--and the Boeing aircraft by operating lease--with delivery of the first four in 2012 and the remaining four in 2013.

Piyasvasti came to office in October last year and has vowed to make sweeping changes in an effort to revitalize the airline, which has long been plagued by questions over its transparency and accused of rewarding politically-connected executives.

The airline will also spend millions of dollars to overhaul its seats and in-flight entertainment in an effort to keep up with rival Asian airlines, such as Singapore Airlines Ltd. (C6L.SG) and Cathay Pacific Airways Ltd. (0293.HK).

Piyasvasti said the airline expects to complete its capital-raising plan by the end of 2010, but declined to confirm the size or any other details. The company previously said it had expected to finalize the plan in the third quarter.

Separately, Thai Airways' board also approved a THB8 billion, seven-year loan from Siam Commercial Bank PCL (SCB.TH), which will be used to refinance maturing debt and finance aircraft acquisitions.

Piyasvasti said shareholders also recently approved the issuance of THB11 billion in bonds this year, but added that the board is considering the terms and conditions, and might still consider opting for bank loans instead.

-By Phisanu Phromchanya, Dow Jones Newswires; 66 2690 4200; phisanu.phromchanya@dowjones.com
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