Thai Airways Aims for 2024 Completion of Restructuring

[webfact]

 

by Natthaphon Sangpolsit

    

BANGKOK (NNT) - Thai Airways International Pcl expects to complete its corporate restructuring in two years as the airline’s performance gradually improves and global travel resumes.

 

Restructuring committee chief Piyasvasti Amranand said on Friday (1 July) that the cabin factor, a measure of how well an airline does in filling seats, reached 70% by last month and was near 90% on European routes.

 

Thai Airways entered bankruptcy last year to restructure 400 billion baht (US$11.25 billion) of debt and previously sought 50 billion baht of loans for liquidity.

 

Thai state agencies will own about 40% of the airline after restructuring, down from current levels of 67%.

 

The overhaul included re-hiring Piyasvasti, who was its president in a previous effort to steer the flag carrier out of financial trouble a decade ago.

 

Thai Airways carried about 19 million passengers before the pandemic and is targeting 9.18 million next year, 11.8 million in 2024 and 12.44 million in 2025.

 

It served 4.48 million travelers in the first six months of this year.

 

Piyasvasti said the airline had reviewed its borrowing needs and would take long-term loans of 12.5 billion baht, which could be converted to equity. He added that short-term loans of the same value without the conversion option were also on the table.

 

Furthermore, the Airways plans to issue new shares and offer creditors debt-to-equity options.

 

Additionally, Piyasvasti said the airline has ample liquidity of around 14 billion baht and has raised about 9.2 billion baht from asset sales, including a Bangkok training center, adding that 12 planes would be sold.

 

Southeast Asian carriers were hard hit by the pandemic, with Malaysia Airlines, Garuda Indonesia and Philippine Airlines also undergoing court-led restructuring.

 

-- © Copyright NNT 2022-07-02

 

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[ThailandRyan]

Saw a YouTube video from a flyer who had just flown from the UK to BKK. If the meals he showed are what's being served, then they are truly saving money big time. Each plate he showcased looked like what I was served in France many years ago.  90 percent of the plate empty and a few slices of this and that. Needles to say Thai Airways is not Air France.......

[NanLaew]

Yes indeed, needless to say.

[RichardColeman]

3 minutes ago, ThailandRyan said:

Saw a YouTube video from a flyer who had just flown from the UK to BKK. If the meals he showed are what's being served, then they are truly saving money big time. Each plate he showcased looked like what I was served in France many years ago.  90 percent of the plate empty and a few slices of this and that. Needles to say Thai Airways is not Air France.......

I flew from LHR to BKK in January (21 on the flight). Meals was ok, but small. BUT - and this was the major issue for me. NO ALCOHOL unless served with meal or the complimentary drink on arrival. No more going and helping yourself when you feel like a bevy - Be interesting to know if that is still happening on the long haul flights.

 

That said, I managed to get 4 beers with my meals - nice Thai guy steward - probably bored with nothing to do.

 

[NanLaew]

I'm looking forward to flying with THAI later this month. I hope their restructuring and debt management plans bear fruit and they return to being a first choice carrier.

[NanLaew]

My friend flew to London with Saudia recently. Brand new A350 and only 24,000 baht r/t for an on-time ~19 hour flight (including stopover). Didn't (couldn't) touch a drop of alcohol anywhere along the way but saved himself about 500 quid to spend on beer and skittles where I could.

[edwinchester]

2 hours ago, NanLaew said:

I'm looking forward to flying with THAI later this month. I hope their restructuring and debt management plans bear fruit and they return to being a first choice carrier.

First choice? They're my last choice until I get reimbursed for flights cancelled over 2 years ago.

[JonnyF]

2 hours ago, ThailandRyan said:

Saw a YouTube video from a flyer who had just flown from the UK to BKK. If the meals he showed are what's being served, then they are truly saving money big time. Each plate he showcased looked like what I was served in France many years ago.  90 percent of the plate empty and a few slices of this and that. Needles to say Thai Airways is not Air France.......

I flew to Sydney with them last week, got back to BKK on Friday (via Phuket).

 

The meals were small but perfectly OK. Chicken/beef with rice/noodles with a bit of veg and a bread roll and a small desert. The same as before Covid as far as I can remember. Wine and beer was served with the food. 

 

Only thing I noticed was there were no drinks served between meals. I reckon I could have got one if I'd have walked up to the stewards area but I wasn't fussed so didn't try. 

 

The bags were slow to come off (except for the air crew's bags). I'm guessing staff shortages are affecting most airlines/airports.

[Tropposurfer]

I hope they can restructure and not just survive, but thrive.

[hotchilli]

8 hours ago, webfact said:

Thai Airways International Pcl expects to complete its corporate restructuring in two years as the airline’s performance gradually improves and global travel resumes.

They've restructured or just borrowed more?

[hotchilli]

5 hours ago, NanLaew said:

I'm looking forward to flying with THAI later this month. I hope their restructuring and debt management plans bear fruit and they return to being a first choice carrier.

Bob Hope and No hope... ????

[NanLaew]

22 hours ago, Tropposurfer said:

I hope they can restructure and not just survive, but thrive.

Totally agree.

 

Then the usual suspects will need to find something else Thai to beat up on to make themselves feel better.