Thai Airways flies high as numbers skyrocket as it flies tourists into the kingdom from Europe

[webfact]

Minister of Finance Arkhom Termpittayapaisith (right centre) revealed on Monday that Thailand’s state banks can facilitate the financial requirements of Thai Airways as its operating performance has improved due to cost-cutting and efficiency measures and surging passenger numbers on flights as the airline focuses on flying passengers in from Europe and other key markets to assist the country’s accelerating foreign tourism recovery.

 

by Joseph O' Connorin

 

2022 could be the year that Thai Airways returns to operational profitability as the Minister of Finance reveals that state banks will provide any required facilities for the flag carrier as it currently plays a strategically important role in flying in foreign tourists to the kingdom while now on target to complete its business rehabilitation plan early by 2024.

Thai Airways shares could be traded again on the kingdom’s Stock Exchange of Thailand (SET) sooner than expected after Finance Minister Arkhom Termpittayapaisith revealed on Monday that the airline is on course to exit its bankruptcy rehabilitation plan as early as 2024 as it benefits from a stronger than expected recovery being seen in foreign tourism and its role in flying European passengers into Thailand since the beginning of 2022.

 

Thai Airways appears to be benefiting from the foreign tourism recovery underway in the kingdom with passenger numbers reported to have risen by over 600% since the beginning of the year.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2022/08/10/thai-airways-flies-high-carrying-tourists-in/

 

-- © Copyright Thai Examiner 2022-08-10

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Monthly car subscription with first-class insurance, 24x7 assistance and more in one price - click here to find out more!

[Mac Mickmanus]

Its really not a good idea to use the word "Sky rocket" in a story about an airline .

  Reading it quickly I just caught the words "Thai airways" and "Rocket" and then quickly had to re read it fully

[smedly]

I would put money on that this company still has too many at the top on big salaries that basically contribute nothing - exactly the problem that has not been fixed - who piad to bail them out ?

[RichardColeman]

Course , it has nothing to do with some airlines refusing to fly direct yet. You make a plan on these  figures without allowing for returning airlines and you will come off the rails big time pretty quickly 

[smutcakes]

Not sure Joseph noted, but they just took another massice 80 bn THB 'loan' from the taxpayer yesterday...should pay the execs salaries for a few months...

[zzaa09]

1 hour ago, smedly said:

I would put money on that this company still has too many at the top on big salaries that basically contribute nothing - exactly the problem that has not been fixed - who piad to bail them out ?

Gee....I wonder who the principle holders [owners] might be? ????

If one knows the answer, then the clear understanding as to why they've had so many major problems and scandals over the years.

[jcmj]

As soon as other airlines start their flights again they will be exactly where they were before. 

[AhFarangJa]

3 hours ago, webfact said:

Minister of Finance Arkhom Termpittayapaisith (right centre) revealed on Monday

Yes, hard to pick him out in that crowd.................

[BKKBike09]

Is it just me, or does the Minister share a striking resemblance to Dr Who arch-villain Davros?

[steven100]

I'm not so sure things are as rosy as this guy makes out ...... 

 

August 9, 2022, 12:23 PM GMT+7

 

( Bloomberg News )  

Thai Air’s $2.3 Billion Capital-Raising Plan Led by Government

State-owned banks will provide new loans, capital infusion

Government will keep at least 40% stake in Thai Airways.

 

Thai Airways International Pcl will receive key financial support from the government for its 80 billion baht ($2.3 billion) capital raising and debt-to-equity swap plan aimed at helping the state-controlled carrier come out of its pandemic-induced bankruptcy. 

State-owned banks will lead in funding new loans, converting debt and injecting equity capital into Thai Air.

The ministry and other agencies will continue to maintain a combined stake of at least 40%, but the proportion won’t exceed 50% to induce the carrier to stay competitive, he added.

source :  https://www.bloomberg.com/news/articles/2022-08-09/thai-air-s-2-3-billion-capital-raising-plan-led-by-government

 

 

Edited August 10, 2022 by steven100

[lujanit]

46 minutes ago, steven100 said:

State-owned banks will lead in funding new loans, converting debt and injecting equity capital into Thai Air.

IMHO this is a really stupid idea.  Converting debt to equity in a bankrupt company is insanity.

 

State owned banks have been directed to provide loans, no independent bank would provide a loan unless there is a water tight guarantee in place.

 

The true state of Thai Airways will become apparent when other airlines start operations to Thailand again.  It won't be pretty.

[edwinchester]

Until I get my money back for 3 flights cancelled 2 and a half years ago definitely won't be flying Thai again.

[Burma Bill]

Thai Airways flies high as numbers skyrocket

 

 

https://opengovasia.com/thai-satellite-to-launch-on-3d-printed-rocket/

[Purdey]

I once understood that Thai Airways was to be dissolved as for decades it has proven to be inefficient. This cycle of bailouts by the public just extends the problem but doesn't solve it. 

Not sure how many remember the disappeance of an airplane engine and the parts being sold back to the airline by their own staff?

Better to sell it to the private sector and end the idea of a national airline. 

[PeeJayEm]

7 hours ago, jcmj said:

As soon as other airlines start their flights again they will be exactly where they were before. 

I think you are right. The reason eg BA hasn't prioritised reinstatement of flights to BKK is because it's a tourist only route without a decent number of higher fare seats in first or business.

So - as Thai's mission is principally to bring tourists to Thailand it ought to operate as a bucket cheap airline - like a long-haul Ryan Air.  But that would be unpalatable for a brand bearing "Royal" in its name - with all the high salaried top-heavy management and hangers-on.  So it is destined to fail.

[madmitch]

At the moment Thai can get away with charging horrendous prices as there are very few players in the market. 

 

£1800 return economy LHR - BKK in August

£1500 same route at Christmas

£1000 in September

 

About double what it would have been pre-covid.

[mikebell]

9 hours ago, RichardColeman said:

Course , it has nothing to do with some airlines refusing to fly direct yet. You make a plan on these  figures without allowing for returning airlines and you will come off the rails big time pretty quickly 

Finnair are operating from BKK.  Beware - I flew out 2 weeks ago and there's no free tipple any more; despite paying 50% more for my ticket + extra for a seat! One Gin = 10 Euros + tonic + Foreign currency exchange rates on your card as they won't accept cash.  Flying back on Sunday on my last ever flight with them.