After a difficult few years in the difficult context of the coronavirus pandemic, many airlines around the world are now looking to forge a strong recovery. THAI Airways is one such carrier, and it recently received approval for revisions to its rehabilitation plan. Let’s take a closer look at the subject.
A solid support
According to Bangkok-based publication The Nation, a vote held today by Thailand’s central bankruptcy court saw the Star Alliance carrier receive strong backing for the review of its rehabilitation plan. Indeed, 78.6% of the creditors involved would have supported the movement, including those of the Ministry of Finance.
THAI Airways hopes this decision will prepare it well for a strong post-pandemic recovery. According to The Nation, the airline’s strong performance in the coming years could see it return to the stock market as early as 2025.
THAI Airways’ rehabilitation plan is an ongoing matter that predates the coronavirus pandemic. Indeed, the carrier initially filed for bankruptcy in 2019, amid debts exceeding $6.4 billion (245 billion Thai baht, in local currency). Earlier this year, the airline filed for review in a bid to exit the plan sooner.
Revisions and next steps
A key element of the revisions approved by Thailand’s Central Bankruptcy Court to THAI Airways’ rehabilitation plan is that the carrier is not asking for as much money. Indeed, the requested funds will be only 25 billion Thai baht (650 million dollars) by 2024, against 50 billion (1.3 billion dollars) initially authorized.
Going forward, the Bangkok-based airline aims to raise its capital, as well as undertake debt-for-equity swaps. It will do so in collaboration with its shareholders and creditors, with the assistance of a financial adviser.
While the past few years have certainly been difficult for THAI Airways, the carrier now appears to be in a more sustainable position. Indeed, The Nation notes that it now records average passenger load factors of around 80%. Additionally, it has amassed a cumulative cash flow of 20 billion Thai baht ($523 million). Simple Flying has contacted the airline for more information on this.
As it happens, the rehabilitation plan isn’t the only area where changes are afoot at the Bangkok-headquartered carrier, whose full name is Thai Airways International Public Company Limited. Indeed, the airline is also looking to make some changes in its management structure. These go all the way to the top of the hierarchy.
Indeed, as Simple Flying reported last month, THAI Airways has also stepped up its search for a new chief executive. Suvadhana Sibunruang has served as the airline’s interim CEO since Chansin Treenuchagron resigned in 2021, but the airline is now ready to appoint someone more concretely. The position is listed on LinkedIn and open for applications until October 25.
What do you think of THAI Airways’ takeover prospects? Have you traveled with the airline in recent months? Let us know your thoughts and experiences in the comments!
Source: The Nation
- IATA/ICAO code:
- Airline type:
- Full service carrier
- Bangkok Suvarnabhumi Airport
- Year of foundation:
- star alliance
- Suvadhana Sibunruang