THAI to request more time to finalise rehab plan

[webfact]

THAI to request more time to finalise rehab plan

By The Nation

 

 

Thai Airways International (THAI) will next week ask the central bankruptcy court to extend the deadline for submission of its business rehabilitation plan by a month, from January 2 to February 2, said acting president Chansin Treenuchagron.

 

Chansin said he was confident the carrier could carry out the plan successfully. According to law, the rehabilitation plan must be fully implemented in five years, after which the rehab process can be extended twice for one year each time.

 

The carrier has continued to see revenue from both its aviation and non-aviation businesses, said the acting president.

 

He said THAI planned to trim costs by another 30 per cent next year.

 

Source: https://www.nationthailand.com/business/30400178

 

 

-- © Copyright The Nation Thailand 2020-12-25

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

[smutcakes]

5 years to continue skimming the company and taxpayers...

[RotBenz8888]

20 minutes ago, webfact said:

He said THAI planned to trim costs by another 30 per cent next year.

I guess we can expect ticket cost to increase 30%. 

[dahinni]

couldn't  pick pocket enough, so extend needed.

fair enough reason ????

Edited December 25, 2020 by dahinni

[PJPom]

Isn’t it amazing that many major successful Airlines are managed by expats, an example would be Emirates. The Arabs don’t care where you are from as long as you are competent and successful, pity they don’t do that here.

[ExpatOilWorker]

THAI have already pocketed and spend the about 1 million outstanding tickets.

Since they have converted all the tickets into travel voucher, they have about 1 million freebie customers to take care of before paying passengers. 

[greeneking]

9 hours ago, smutcakes said:

5 years to continue skimming the company and taxpayers...

Lots of money swilling around.

A Bt54-million budget for renovating a restroom on a VVIP plane is “reasonable” said the RTAF. (Matichon)

RTAF bought the plane from Thai Airways International.  Lots more planes available that not many other countries want, and generous budget for changes to each one can be explained away.

[Mr Meeseeks]

The debt must be 370thb billion now. 

 

How's that gonna be paid off then? 

[onthedarkside]

Several posts with trolling graphics have been removed.

[PJPom]

2 hours ago, greeneking said:

Lots of money swilling around.

A Bt54-million budget for renovating a restroom on a VVIP plane is “reasonable” said the RTAF. (Matichon)

RTAF bought the plane from Thai Airways International.  Lots more planes available that not many other countries want, and generous budget for changes to each one can be explained away.

That is less than two million dollars, many years ago I remember the US airforce paying twenty thousand dollars for an ashtray in a Lockheed aircraft, approx two thirds of a million baht so fixing a loo is quite cheap.Seriously the kickbacks will no doubt inflate even this price...T I T...

[Patong2021]

5 hours ago, PJPom said:

Isn’t it amazing that many major successful Airlines are managed by expats, an example would be Emirates. The Arabs don’t care where you are from as long as you are competent and successful, pity they don’t do that here.

 

Not a fair comment.

Emir and elite of UAE has their own aircraft fleet. 12 aircraft and 5 are B747-400, 2 B77-300.

Dubai Royal Air wing and presidential Flight have their own budget and are stand alone.

 

Thai Airways International with the exception of the Royal B737 and the two military Embraers  is responsible for Thai government and official transport . The actual cost of non common air passenger air travel is not declared, but it is no secret that the premium cabins are often filled with government, and military related passengers. Many airports are owned by Thai military and Thai Airways must pay fees that some describe as unreasonably high.

 

It does not really matter who run Thai Airways when it has the heavy Thai based costs and expensive obligations that  it forced to take. Rickard Gustafson could come tomorrow with Karl Sandlund and nothing would change. I do not see TG as independent.

 

[smutcakes]

10 hours ago, PJPom said:

Isn’t it amazing that many major successful Airlines are managed by expats, an example would be Emirates. The Arabs don’t care where you are from as long as you are competent and successful, pity they don’t do that here.

There are also many failing airlines managed by westerners.

[mtls2005]

21 hours ago, webfact said:

According to law, the rehabilitation plan must be fully implemented in five years, after which the rehab process can be extended twice for one year each time.

 

So seven (7) years.

 

Money-pit.

 

Time to paint over the THAI logo with black paint and move on from this state enterprise.

 

 

[Fex Bluse]

21 hours ago, webfact said:

THAI to request more time to finalise rehab plan

Typical Thai stall. They are trying to stall it long enough that foreign tourism returns. That's the only way they will make any money. 

 

@sandyf do you agree or do you think the Thai domestic tourism can save them? 

Edited December 26, 2020 by Fex Bluse

[jaiyen]

Give them 3 months if they want it. Definitely won't be flying before then.

[hotchilli]

On 12/25/2020 at 11:42 AM, webfact said:

According to law, the rehabilitation plan must be fully implemented in five years, after which the rehab process can be extended twice for one year each time.

I'm sure they'll use the full extent of the law.

[Bezdomny]

They tried to make me go to Rehab
But I said no, no, no
Yes I've been purple but when I come back
You'll know, know, know
I ain't got the time
And if Mr.Somchai thinks I'm fine
Just try to make me go to Rehab
But I won't go, go, go

[Mr Meeseeks]

2 hours ago, jaiyen said:

Give them 3 months if they want it. Definitely won't be flying before then.

And lose another thb20 billion during that period of inactivity?

 

Profligate in the extreme.

 

Get this boondoggle into liquidation and put it out of its misery.

[Srikcir]

14 hours ago, PJPom said:

That is less than two million dollars, many years ago I remember the US airforce paying twenty thousand dollars for an ashtray in a Lockheed aircraft, approx two thirds of a million baht so fixing a loo is quite cheap.Seriously the kickbacks will no doubt inflate even this price...T I T...

Maybe check this.

US Air Force did pay about $10,000 each to replace toilet seat covers on the Lockheed C-5 Galaxy as late as 2017. Several reasons for the high cost. But hereafter will use 3-D printing costing $300 each. https ://www.washingtonpost.com/business /capitalbusiness/the-air-forces-10000-toilet-cover/2018/07/14/c33d325a-85df-11e8-8f6c-46cb43e3f306_story.html

But point taken about lack of economic benefit vs cost.

[Srikcir]

'carrier has continued to see revenue'

Gross revenue vs net revenue (ie., profit)?

The former is almost irrelevant, especially in bankruptcy reorganization. 

 

[GinBoy2]

So I've watched several major airlines go through restructuring, and let's not pretend it's a painless process.

 

But they all went through radical change, something I'm skeptical TG is capable of.

 

But going back to the early 2000's and watching United come through Chapter 11, a few lessons can be learned in relation to TG.

 

Unlike TG, most US legacy airlines had a domestic and international business (the issue being TG is a 100% widebody fleet, not suited for domestic operations).

UAL along with all the majors recognized the need the outsource the secondary domestic markets to third parties, while retaining the first tier as mainline

 

They slashed the marginal international routes, and let's talk about marginal international routes, because thats a key aspect of TG's difficulties.

 

To the chagrin of many an expat the reality is that your Y fare ticket is in real terms significantly cheaper per flight mile than it was 20-30 years ago. That forced the airlines to focus on filling the much higher yield first and business class seats.

Thats where in most cases hard nosed economics meant those routes which couldn't fill revenue paying J, C and F seats got cancelled.

 

Routes TG operates don't really cater to those business markets, it's a tourist market predominately, and Yes you can argue endlessly about how those premium seats get filled!

 

But TG's answer to that conundrum was to make up for that lack of high yield seats by increasing the price of low yield seats, just accelerating the madness.

 

If I were restructuring TG, I'd turn it into a regional mid class airline, something along the lines of JetBlue. Not a full service legacy airline, but a step up from the true LCC.

 

Now what you do the TG debt? The only answer to that is that the Government basically has to wipe it out, which if they don't is basically a death knell

[soi3eddie]

22 hours ago, ExpatOilWorker said:

THAI have already pocketed and spend the about 1 million outstanding tickets.

Since they have converted all the tickets into travel voucher, they have about 1 million freebie customers to take care of before paying passengers. 

 

Will be interesting to see how easy it is to convert vouchers into tickets and at how much of a fare increase on same route. 

 

[soi3eddie]

17 hours ago, Patong2021 said:

 

Not a fair comment.

Emir and elite of UAE has their own aircraft fleet. 12 aircraft and 5 are B747-400, 2 B77-300.

Dubai Royal Air wing and presidential Flight have their own budget and are stand alone.

 

Thai Airways International with the exception of the Royal B737 and the two military Embraers  is responsible for Thai government and official transport . The actual cost of non common air passenger air travel is not declared, but it is no secret that the premium cabins are often filled with government, and military related passengers. Many airports are owned by Thai military and Thai Airways must pay fees that some describe as unreasonably high.

 

It does not really matter who run Thai Airways when it has the heavy Thai based costs and expensive obligations that  it forced to take. Rickard Gustafson could come tomorrow with Karl Sandlund and nothing would change. I do not see TG as independent.

 

 

So give the Thai elite and government their own fleet and then it will be seen how much is commercial entity and how much is private aviation for the privileged and well connected. 

 

[GinBoy2]

On 12/26/2020 at 4:40 AM, soi3eddie said:

 

So give the Thai elite and government their own fleet and then it will be seen how much is commercial entity and how much is private aviation for the privileged and well connected. 

 

Well thats part of the problem.

 

The TG that exists today is inextricably linked to the elite.

 

As I stated in a previous post, TG needs premium fare passengers, but how many of those seats are actually revenue paying is debatable. It's impossible btw to determine that from their financials, along with the Thai Smile numbers, they only publish consolidated figures so you can never separate individual metrics.

 

So the question you have to ask is this. How many of those seats, anecdotally at least being occupied by a freeloading elite off on a shopping trip could actually have been filled with a revenue passenger?

 

I'm not sure anyone can answer that, which brings me back to my previous point, that TG is better suited to a mid class regional airline, and forget the lofty ambitions to be some high class world airline.

 

There are plenty of other global airlines better suited to that.