Thai Airways International expects to exit business rehabilitation by the second quarter of 2025, as it works through capital restructuring for the rest of this year.
The disclosure comes as it outlines its new growth strategy – called “Fly for the new pride” – to ensure “sustained profitability” in the long term.
Chair of Thai’s business rehabilitation plan executive committee Piyasvasti Amranand says the airline is undertaking a capital restructuring which will see it convert existing creditor debt into capital and granting its creditors the right to convert their additional debt into capital.
This also includes the offering of additional common shares to existing airline shareholders “to strengthen Thai Airways’ capital” and prepare for an eventual relisting on the Thai bourse.
“After the capital restructuring under this rehabilitation plan, it is expected that the [Thai] Ministry of Finance will remain a major shareholder, but the shareholding proportion will be reduced to provide opportunities for other investors,” adds Piyasvasti.
When the restructuring is completed by the end of the year, Thai will have a new board of directors and will file a petition with the country’s Central Bankruptcy Court to exit rehabilitation.
An embattled Thai filed for bankruptcy protection in 2020 as it was heavily impacted by a collapse in air travel during the pandemic.
Since then, it has restructured its operations, merging its regional unit Thai Smile into mainline operations, and trimming the number of employees and aircraft types in its fleet. Its financial results have seen a turnaround too: the airline posted post-pandemic profits following the resumption of international travel.
“This business rehabilitation plan is a major transformation of the organisation, in terms of restructuring the organisation from being a state enterprise to…a private company that operates efficiently, flexibly and transparently,” notes Piyasvasti.
Airline chief Chai Eamsiri, speaking about the airline’s new business strategy, says Thai is “aiming for sustainable growth…by revolutionising our business, building a strong network of partners and upgrading our service standards”.
To this end the airline will “strengthen” its route network with a focus on transit traffic, as well as diversifying its revenue sources and “reduce dependence” on its airline business.
Other measures include improving its products and services – both inflight and on the ground – and to boost its operating efficiencies “to drive cost competitiveness”.
Chai did not provide further details on the airline’s strategy. However, he states: “With these strategies, Thai Airways will be able to operate agilely, cope with challenges, and adapt to changes quickly, and be able to develop and innovate to support new business opportunities…for strong and sustainable growth in the future”.
The Star Alliance operator placed a firm order for 45 Boeing 787-9 aircraft, plus 35 options, at the Singapore air show this year. The deal offers the carrier a route to the new 777X as well.
