Thai Airways International Public Company Limited (THAI) has officially filed a petition with the Central Bankruptcy Court to exit its court-supervised rehabilitation program, marking a significant milestone in its recovery journey. The petition follows strict adherence to the airline’s restructuring plan, including disciplined debt repayment and impressive operational performance.
In 2024, THAI reported an EBITDA of 41.47 billion baht, surpassing the 20-billion-baht benchmark necessary to exit the rehabilitation plan. Additionally, the company returned to positive shareholders’ equity through debt-to-equity conversions and a capital increase, achieving 45.5 billion baht in equity by the end of the year.
The court is expected to schedule a hearing in late May or early June. If approved, Thai Airways will officially exit its rehabilitation process and focus on future growth.
Key Initiatives and Future Plans
Post-rehabilitation, Thai Airways will appoint a new 11-member Board of Directors, electing a new chairman and forming an audit committee. The airline is also preparing to resume trading on the Stock Exchange of Thailand (SET) by July 2025.
Looking ahead, the airline aims to focus on three core areas:
- Sustaining Financial Performance: With a 23.3% profit margin, Thai Airways aims to maintain its improved financial health.
- Product Development: Thai Airways is enhancing its product offerings after a period of financial constraints, aiming to compete globally.
- Fleet Expansion: The airline plans to expand its fleet to 150 aircraft by 2033, beginning with the delivery of 32 Airbus A321neo aircraft and 45 Boeing 787 aircraft starting in 2027.
Revenue Growth Target of THB180 Billion
Piyasvasti Amranand, Chairman of THAI’s Rehabilitation Plan Administrators, expressed confidence in achieving a revenue target of THB180 billion, potentially reaching THB200 billion, despite a relatively stable fleet size. The airline’s expansion plans, including the introduction of new aircraft, are expected to drive this growth.
U.S. Route Resumption Feasibility Study
Following an upgrade by the U.S. Federal Aviation Administration (FAA) to Category 1, Thai Airways is exploring the potential to resume flights to the United States. The airline is assessing the feasibility of operating these routes via Osaka with wide-body aircraft, including Airbus A350s and Boeing 787s, but acquiring these aircraft remains a challenge.
Fleet Modernization and Service Enhancements
As part of its broader transformation, Thai Airways is investing in fleet upgrades, including refurbishing 20 Airbus A320s and upgrading its Boeing 777-300ER and Airbus A350 aircraft. New aircraft deliveries will enable the airline to expand its route network, increasing frequency to key destinations such as Paris and potentially resuming services to Amsterdam and Vienna.
Source: Swifteradio.com
