Thai Airways hopes to return to operational profit in two years

[webfact]

Photo from thaiairways.com

 

Struggling national flag carrier Thai Airways International expects to make a profit in 2024 if the government’s policy of reopening Thailand to foreign arrivals proceeds smoothly, said Piyasvasti Amranand, chairman of the Rehabilitation Plan Administrators, on Monday.

 

He said that the company, which is undergoing bankruptcy-protected restructuring, has managed to cut operational costs by more than 44.8 billion baht, which includes changes of aircraft rental and maintenance contracts, sale of the company’s land and buildings, reduction of fringe benefits for its employees and a 50% reduction in the work force.

 

He also said, however, that the airline is in need of a fresh injection of cash and is about to begin negotiations with financial institutions for 25 billion baht in loans, to compensate redundant employees and to refund customers bought air tickets in advance, after a promise by the government to inject another 50 billion baht may not be forthcoming due to fiscal limitations and other political reasons.

 

Full story: https://www.thaipbsworld.com/thai-airways-hopes-to-return-to-operational-profit-in-two-years/

 

-- © Copyright Thai PBS 2021-11-02

 

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[fangless]

Is Thailand now the HUB of Crystal Ball manufacturing!

Yet another unfounded "Forecast" by a Thai Authority/Establishment.

[mtls2005]

5 minutes ago, webfact said:

He also said, however, that the airline is in need of a fresh injection of cash

 

Way to bury the lede.

 

 

[alyx]

Let’s hope …and…nope…it is purely an egoistical wish: I have got a bit less than 500 K Baht strapped in tickets and vouchers  ???? 

[Doctor Tom]

Haha,  laugh of the day.  How about paying back the billions of Baht in State aid given to this basket case of an airline? Any company can be 'profitable' if its losses keep getting written off by the State, just ask Qatar. 

Edited November 2, 2021 by Doctor Tom

[kevin612]

2 years x 5=10,  always expect from the worst scenario.

[ezzra]

"hope is the thing with feathers" Not wings made out of metal and run by "hopeful" people...

[Zikomat]

And I bet on another” bankruptcy-protected restructuring” somewhere in 2023.

[lujanit]

Thai Airways is a dead pig and should be treated as such.  That the Hi-So and generals are feeding off the dead pig to the last baht it just won't happen.

[tingtong]

Thai airways a long time money pit...unlikely to change in the next 2  or even 20yrs.

 

 

 

[RafPinto]

How is the "food selling" venture doing?

 

Operational profit in 2 years? 

Be careful that your aircrafts won't be confiscated abroad.

 

 

[Geoffggi]

Stop all the government/military personnel travelling free of charge ...........

[JonnyF]

Why would they want it to be profitable?

 

Currently the well connected bleed it dry with free first class flights, well paid positions for retired Generals that do nothing and have absolutely no experience running an airline, backhanders from ridiculously overpriced purchasing contracts etc. and then every few years the tax payer pays off the massive debts that have accumulated from such malpractice.

 

It's a vehicle to transfer money from the tax payer into the pockets of the well connected. It's serving it's purpose the way it is. As long as they can continue to repackage the tax payer funded bailouts as bankruptcy protected "restructuring" then they're good to go for a few more years.

[Walker88]

I'm not sure Thai Airways was ever profitable---at least using GAAP---so returning to what never was is a tall order, especially in a post-Covid world.

 

There's a fine line between optimism and delusion, perhaps, but this one is easy to see.

[trainman34014]

Will never happen unless they bring in Western Management with years of Airline operating experience and that's not going to happen as way too sensible for Thai minds to fathom !

[clivebaxter]

No problem, smooth as sandpaper, people will be lining up to pay their over the top prices ????

[tomazbodner]

1 hour ago, Geoffggi said:

Stop all the government/military personnel travelling free of charge ...........

Last time, Piyasvasti Amranand, chairman of the Rehabilitation Plan Administrators, was chairman of Thai Airways, he did just that and got promptly replaced. His reign was also the only time in recent history that Thai Airways was profitable.

 

Hence there could not be a better man in charge of TG than this. But of course, what happens when hi-so no longer get free 1st class tickets and what strings they are capable of pulling to get their "benefits" back is another story...

[Misterwhisper]

2 hours ago, webfact said:

He also said, however, that the airline is in need of a fresh injection of cash

I see. Despite all that "restructuring" still a bottomless barrel.

Edited November 2, 2021 by Misterwhisper

[Sydebolle]

Well, if you hardly fly anywhere then your entire fleet is grounded and the result can be a cut of  operational costs by more than 44.8 billion Baht. 

Does this also include the recovering of more than USD 10 billion (not million)? Just asking the mathematicians at the head office of the "Smooth as Silk" club; better known as 7/11 without a cashier on the way out! 

[soi3eddie]

2 hours ago, trainman34014 said:

Will never happen unless they bring in Western Management with years of Airline operating experience and that's not going to happen as way too sensible for Thai minds to fathom !

Not due to sense but nationalistic pride. Thais know best and it would be a loss of face to have any foreigners involved in running their flag carrier airline.

 

[sammieuk1]

Off to A+E to get my sides stitched up again after reading this prediction ????

[Andycoops]

Utter mumbo jumbo, there is still too much fat on the carcass for the snouts to gobble.

[hotchilli]

5 hours ago, webfact said:

Struggling national flag carrier Thai Airways International expects to make a profit in 2024 if the government’s policy of reopening Thailand to foreign arrivals proceeds smoothly, said Piyasvasti Amranand, chairman of the Rehabilitation Plan Administrators, on Monday.

Another dream.

[Megasin1]

you have to admire the comedic value of these posts ????

[MrJ2U]

Ever optimistic! 

[Dont confuse me]

That means a substantial price hike. They will simply price themselves out of the market.

Typical Asian mentality, they wouldn't dream of lowering the prices and service to make themselves competitive, then once they have a steady increase in bookings slowly increase the prices at best  it's a 5 year plan, that's why they will never do it!

[ronster]

Been borrowing the TAT calculator ?

They were 260 billion bht in debt or something ! ????????????

[jacko45k]

That's it, had my morning giggle. Time to shut the computer down and get on with something!

[steven100]

21 hours ago, webfact said:

the airline is in need of a fresh injection of cash and is about to begin negotiations with financial institutions for 25 billion baht in loans, to compensate redundant employees and to refund customers bought air tickets in advance, after a promise by the government to inject another 50 billion baht may not be forthcoming

Last one out turn the light off please   !!     The government was smart in not giving them more cash,   and what finance group would even consider lending these thief's 25 billion  ??     they'd be crazy   !

 

Thai airways will be gone in a few months when no cash becomes available .....   

[soi3eddie]

I'm flying THAI this morning from London to Bangkok. It will be interesting to see how it is after all this time. When I returned in April this year there was no In-Flight-Entertainment nor Alcohol being served. I used a "free" Gold upgrade to business class for today's trip and they hit me with £298 in extra charges (normally just £90 for the extra UK Gov tax). They said it was for "fuel surcharge" and "award" admin fee so they are definitely going about money grabbing to try and turn a profit. I'll certainly enjoy trying to reduce any profit by consuming as much of their Champagne as possible but knowing them, highly expect to hear "No Have Sir".