Thai Airways International is gearing up to exit its business rehabilitation process by mid-2025, showcasing its renewed commitment to sustained profitability through a comprehensive growth strategy. This ambitious plan, dubbed “Fly for the New Pride,” aims to revitalise the airline’s operations and secure its position in the competitive aviation market.
Capital Restructuring: A Key Focus
During a recent announcement, the chair of the airline’s business rehabilitation plan executive committee, Piyasvasti Amranand, outlined the significant steps involved in the capital restructuring process.
- Debt Conversion: The plan includes converting existing creditor debt into capital, allowing creditors the option to convert additional debt into equity.
- New Share Offerings: Thai Airways will offer additional common shares to existing shareholders to strengthen its capital base, preparing for a relisting on the Thai Stock Exchange.
Piyasvasti noted that while the Thai Ministry of Finance will remain a major shareholder, its proportion will decrease, opening opportunities for other investors. This restructuring is pivotal for the airline’s recovery and future growth.
Timeline for Recovery
The completion of the restructuring is targeted for the end of this year, after which Thai Airways will establish a new board of directors. The airline plans to file a petition with the Central Bankruptcy Court to formally exit rehabilitation, marking a significant milestone in its recovery journey.
- History of Struggles: Thai Airways filed for bankruptcy protection in 2020, heavily impacted by the pandemic’s devastating effect on air travel. Since then, it has restructured operations by merging its regional unit, Thai Smile, into mainline services and reducing its workforce and fleet types.
Financial Turnaround Post-Pandemic
Since the resumption of international travel, Thai Airways has reported a positive turnaround in its financial results. This is a testament to the airline’s resilience and commitment to overcoming challenges.
- Major Transformation: Piyasvasti emphasised that the rehabilitation plan represents a substantial transformation of the organisation, shifting from a state enterprise to a more efficient, flexible, and transparent private company.
Aiming for Sustainable Growth
Chai Eamsiri, the airline chief, elaborated on the new growth strategy, which focuses on “sustainable growth” through innovation and partnerships.
- Route Network Enhancement: Thai Airways plans to strengthen its route network, particularly focusing on transit traffic, while diversifying revenue sources to reduce reliance on traditional airline operations.
- Service Upgrades: Continuous improvements in both inflight and ground services are crucial to enhancing customer experiences and operational efficiency.
Chai stated that these strategies will enable Thai Airways to operate more agilely, adapt to market changes, and seize new business opportunities.
Fleet Expansion Plans
A critical aspect of Thai Airways’ growth strategy includes a firm order for 45 Boeing 787-9 aircraft, along with options for an additional 35. This strategic move not only modernises its fleet but also positions the airline for future growth, providing a pathway to the new 777X model.
Conclusion: A New Era for Thai Airways
As Thai Airways prepares to exit rehabilitation by mid-2025, its strategic focus on capital restructuring, service innovation, and fleet expansion highlights its commitment to a robust recovery. This plan not only aims to secure the airline’s financial future but also seeks to enhance the travel experience for its passengers.
With a renewed vision and strategy, Thai Airways is poised to reclaim its status as a leading player in the aviation industry.
