Airbus calls in THAI debts for 30 rented jets

By The Nation

 

 

Airbus has notified Thai Airways International (THAI) of debts it owes on 30 rented aircraft, as the national carrier struggles to formulate a plan for financial recovery.

 

Deputy Transport Minister Thaworn Senneam said that THAI’s debts were checked on May 15, when documents showed that Airbus is trying to collect debts for rental of 30 airplanes as the due date draws close.

 

He added that Prime Minister Prayut Chan-o-cha ordered THAI’s rehabilitation via the bankruptcy law rather than the State Enterprise Policy Office’s plan for a Bt54.7-billion loan guaranteed by the government because the private sector holds 31 per cent of THAI shares.

 

Had the government supported THAI’s rehabilitation, it would have violated the new State Fiscal and Financial Disciplines Act.

 

The government had supported THAI for five years but failed to solve the carrier’s financial issues, so the bankruptcy procedure was now the best option, Thaworn said.

 

After the Finance Ministry sells its majority stake in the shareholding, THAI will no longer be a state enterprise and would be easier to handle, he said.

 

The recovery plan must also be filed with the US bankruptcy court to prevent American creditors from taking back all the planes or collecting THAI’s assets.

 

The 53 Airbus aircraft loaned to THAI comprise six Airbus A380-800, 12 A350-900s, 15 A330-300s and 20 A320-200s.

 

Source: https://www.nationthailand.com/business/30388184

 

-- © Copyright The Nation Thailand 2020-05-21

 

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Goodbye Thai! So much for anyone getting a refund on their flights.

its only the beginning. Wait till the banks start to call on the Thai citizens in regards to their debt.

Some years ago I remember reading that Thai had some leased B777's, cost, around $1 million per month each.

17 minutes ago, webfact said:

 

The government had supported THAI for five years but failed to solve the carrier’s financial issues, so the bankruptcy procedure was now the best option, Thaworn said.

Talk about flogging a dead horse .. 

Do not resuscitate should be on the bottom of this patient's notes .. 

1 minute ago, Justgrazing said:

Talk about flogging a dead horse .. 

Do not resuscitate should be on the bottom of this patient's notes .. 

Yes, but only like SAA, Alitalia, Malaysian and many others.

It was only a matter of time before the house of cards came crashing down.  The government should never have bailed them out 5 years ago.  There will be a huge vacuum if they go under.  They may need to combine with another carrier and rebrand to survive. All I know is that there should never have been free flights for the executives or government officials. Like an American carrier they should be made to fly standby and not be put in business or first class over a fare paying customer.

12 minutes ago, ThailandRyan said:

It was only a matter of time before the house of cards came crashing down.

It took C19 to see off Thai permanently.  A virus killed a germ.  

3 minutes ago, ThailandRyan said:

It was only a matter of time before the house of cards came crashing down.  The government should never have bailed them out 5 years ago.  There will be a huge vacuum if they go under.  They may need to combine with another carrier and rebrand to survive. All I know is that there should never have been free flights for the executives or government officials. Like an American carrier they should be made to fly standby and not be put in business or first class over a fare paying customer.

Free flights have nothing to do with it. Most airlines offer their personnel discounted/free perks,

 

If you look at the top-line management team, they are pretty much all ex-military. Inflexible, unable to think outside the box unimiagnative and used to following rules and procedures. They have very little experience of running a business let alone an airline and sadly this formula has been repeated time and time again.

 

What you need in any well run company is a respected management team who understand market dynamics and competition and are customer foccussed whilst also keeping a tight reign on the purse-strings.

 

They need to privatise the whole damned operation whilst keeping govermental noses out of the business. It will take years to turn it around but its the airlines best chance of success.

 

 

7 minutes ago, Chelseafan said:

Free flights have nothing to do with it.

I'm not in agreement.

1 minute ago, torturedsole said:

I'm not in agreement.

...and many of the free flights would've been in the most potentially profitable seats.

50 minutes ago, webfact said:

Airbus calls in THAI debts for 30 rented jets

Yes! Take THAI down! 

9 minutes ago, Andrew65 said:

...and many of the free flights would've been in the most potentially profitable seats.

I alternative between Thai and Emirates and fly in those profitable seats and half the time they are empty. Why ? Because they are too damned expensive.

 

I'm not saying they couldn't trim the free-loading fat but it's not the reason they are in the <deleted>. Years of mis-managaement have caused their current position. Covid tipped them over the edge.

 

 

 

Edited May 20, 20206 yr by Chelseafan

Sorry Airbus. Can we defer our debt payments ?

 

You see. We're really tied up feeding the poor and shoring up the economy so the common man can survive during this deadly pandemic. 

1 minute ago, Chelseafan said:

I alternative between Thai and Emirates and fly in those profitable seats and half the time they are empty. Why ? Because they are too damned expensive.

 

I'm not saying they couldn't trim the free-loading fat but it's not the reason they are in the <deleted>. Years of mis-managaement have caused their current position. Covid tipped them over the edge.

 

 

 

I flew in business quite a lot, also Thai & Emirates, but only once on the company. BC was usually around 3 or 4 times more than economy.

12 minutes ago, Andrew65 said:

I flew in business quite a lot, also Thai & Emirates, but only once on the company. BC was usually around 3 or 4 times more than economy.

To be fair, that's generally the rule of thumb for a lot of airlines

 

Economy = Base

Business = Base x 3/4

First = Base x 7/8

 

Obviously there are promotions to be had which mitigate the higher fares.

 

I would hazard a guess that around 80% of the time I book a flight to Thailand Emirates are cheaper.

 

 

Edited May 20, 20206 yr by Chelseafan

Tell them to take a number and stand in line, THAI still owe me a refund on a cancelled March flight...

perfect timing.

2 minutes ago, ezzra said:

Tell them to take a number and stand in line, THAI still owe me a refund on a cancelled March flight...

you sound like an important guy. are you super important ?

It's not only Thai, just about every airline worldwide except Middle Eastern may fold in the next month or so..unless of Government bailouts. All those vouchers in place of refunds or rebooked flights will be worthless.

15 minutes ago, ezzra said:

Tell them to take a number and stand in line, THAI still owe me a refund on a cancelled March flight...

 

I think the technical legal term for your standing in the hierarchy is "SOL".

 

But I'd always suggest you get an attorney and not count on advice from an interweb forum.  Especially not this one.

 

1 hour ago, Chelseafan said:

Free flights have nothing to do with it. Most airlines offer their personnel discounted/free perks,

define "their personnel"

 

I don't think you've quite understood who qualified

1 hour ago, Chelseafan said:

If you look at the top-line management team, they are pretty much all ex-military.

are you referring to every top job in the country or just "Thai"

1 hour ago, Andrew65 said:

...and many of the free flights would've been in the most potentially profitable seats.

It is the main reason I have not flown with Thai in the past 4 years.  I had a flight to the US and back, but was bumped from my first class seat so an employee could take their trip, I do not care if it was a pilot or a freaking executive, you do not bounce a paying customer.  Instead they offered me a voucher for the inconvenience when I complained.  I ended up flying out on Korean Air, and have flown them ever since.  Never did get a full refund from Thai.  They are so screwed up.  Employee's may fly free but it should be on a standby only option, and if a seat is open then they can take it.  If a seat is already occupied and you remove that person for your free employee you are a unscrupulous company in my book.....

1 hour ago, Chelseafan said:

They need to privatise the whole damned operation whilst keeping govermental noses out of the business.

they did keep a tight reign on the purse strings - where do you think the money was going ?,  into their pockets ?

 

don't be silly

8 hours ago, Chelseafan said:

Free flights have nothing to do with it. Most airlines offer their personnel discounted/free perks,

 

 

You cannot be serious with that comment, free flights have everything to do with Thai airways.

Not only staff getting freebies, but hundreds of hi-so cronies have been getting freebies.

 

What about the time the passenger in first class was kicked out of his seat, so a hi-so <deleted>, could sit there free?

1 hour ago, Creasy said:

Sorry Airbus. Can we defer our debt payments ?

we want our aircraft back if you don't settle the bill

8 minutes ago, colinneil said:

You cannot be serious with that comment, free flights have everything to do with Thai airways.

Not only staff getting freebies, but hundreds of hi-so cronies have been getting freebies.

 

What about the time the passenger in first class was kicked out of his seat, so a hi-so pri+k, could sit there free?

Colin, I was also bumped 4 years ago, but never blasted Thai in writing, as it would never have made a difference, and I would have been accused of sour grapes.

1 hour ago, ezzra said:

Tell them to take a number and stand in line, THAI still owe me a refund on a cancelled March flight...

Spoke with Thai yesterday, they advised any refunds will take a least six months. of course It is quite possible if Thai is 'restructured' no refunds / vouchers will be paid.

28 minutes ago, ThailandRyan said:

It is the main reason I have not flown with Thai in the past 4 years. I had a flight to the US and back ...

"As of 2013, services between Bangkok and Los Angeles were served via Incheon International Airport near Seoul, however, (ThaiAirways) ended its service to the US on 25 October 2015."

 

https://en.wikipedia.org/wiki/Thai_Airways

1 hour ago, ezzra said:

Tell them to take a number and stand in line, THAI still owe me a refund on a cancelled March flight...

Me too

Called up and was told minimum 3 months for refund..

Or was offered a credit that expires in 6 months...