Thai Airways International is poised to emerge from its rehabilitation phase with a bold strategy to double its fleet size, signaling a robust recovery and ambitious growth plans for the future.
Rehabilitation Exit Strategy
Capital Restructuring and Operational Efficiency
Thai Airways is set to conclude its rehabilitation phase by next year, focusing on capital restructuring and operational efficiency. The airline plans to increase its fleet from 79 aircraft in 2024 to 100 by 2027, while also reducing its workforce from 30,000 to 17,000 employees. These measures aim to achieve an annual EBITDA of at least 20 billion baht.
Financial Maneuvers
Bond Issuance and Stock Market Return
To support its growth strategy, Thai Airways intends to raise 80 billion baht through bond issuance and debt-to-equity conversion. The airline is preparing to file with the Securities and Exchange Commission by September 30, 2024, with the goal of resuming stock trading in the second quarter of 2025.
Fleet Expansion Details
Diverse Aircraft Acquisitions
Thai Airways’ fleet expansion plan includes a mix of narrow-body and wide-body aircraft. The airline has ordered 45 Boeing 787-9 Dreamliners and signed lease agreements for various Airbus models, including 19 A321neo, 27 A321-200NX, and 4 A321-200NX(LR) aircraft. Additionally, a recent agreement with SMBC Aviation Capital will bring 8 more A321neo aircraft in 2026 and 2027.
Operational Improvements
Efficiency and Passenger Comfort
The new aircraft, particularly the A321neo, are expected to enhance Thai Airways’ operational efficiency, improve passenger comfort, and reduce environmental impact. This aligns with the airline’s long-term strategy to modernize its fleet and meet the strong recovery demand in the aviation sector.
Future Outlook
Private Entity Transition and Partnerships
As part of its rehabilitation, Thai Airways will transition to operate as a private entity, distancing itself from government influence. The airline is exploring partnerships with international entities in the aviation sector to ensure ongoing profitability and effective debt management.
Timeline for Rehabilitation Exit
Key Milestones and Expectations
Thai Airways expects to complete its capital restructuring by the end of 2024, in line with its business rehabilitation plan. The airline aims to file a petition with the Central Bankruptcy Court to exit the rehabilitation plan, with hopes of having its shares traded again on the Stock Exchange of Thailand within the second quarter of 2025.
