Thai Airways International (THAI) is gearing up to soar back to its prime, with sights set on exiting its rehabilitation phase and reclaiming its position on the Stock Exchange of Thailand (SET) by the middle of next year. Leading this ambitious return is Piyasvasti Amranand, the mastermind of the airline’s debt rehabilitation process. Fueling this optimism is the airline’s impressive performance, having reached a landmark profit of 28.1 billion baht last year and maintaining the momentum into the first half of this year. Piyasvasti attributes this success to a meticulous three-year makeover plan that has been nothing short of triumphant.
However, the financial waters aren’t entirely calm just yet. As of June 30, the airline’s ledger showed a daunting red mark of 40.42 billion baht. Undeterred, THAI is on a mission to wipe clean this red ink through an innovative capital restructuring strategy. This plan, crucial to the rehabilitation journey, involves a debt-to-equity swap and offering additional shares to current stakeholders, paving the runway for THAI’s relisting on the SET.
In an intriguing juxtaposition, while THAI embarks on this financial recalibration, the Ministry of Commerce is set to retain its position as the airline’s major shareholder. The restructuring initiative is anticipated to conclude by the year’s end, setting the stage for the induction of a fresh board of directors. This new leadership team will then steer the airline to petition the Central Bankruptcy Court, formally marking its exit from court-mandated rehabilitation. If all goes as planned, THAI could very well be relisted by the second quarter of the upcoming year.
Brimming with positivity, THAI’s CEO, Chai Eamsiri, enthuses about how the airline’s capacity and operational efficiency have taken flight once again. He cites impressive industry indicators, such as an increase in available seat kilometers (ASK)—a metric for gauging passenger capacity. With about 13.8 million passengers boarding their flights last year—a remarkable uplift of 9 million from the previous year—the airline’s financial skies are clearing beautifully. In 2023, THAI clocked a net income of 165.49 billion baht, a substantial leap of 105.21 billion baht compared to 2022.
With its new motto, “Fly for The New Pride,” THAI aspires to not just maintain but amplify its growth trajectory. The catchphrase is emblematic of the airline’s renewed zeal to excel and sustain its business evolution—an attribute CEO Chai eagerly echoes. “We are moving forward to sustainable growth with professional business reform,” he declares, hopeful that Thais will rally their support around their national flag carrier once again.
Financial figures tell a tale of resurgence, with the airline reporting a profit surge to the tune of 12.63 billion baht, marking a 15.2% growth in the second quarter of this year. With such promising developments on the horizon, it seems Thai Airways is charting a course set firmly on the wind of ambition and resilience, propelling it towards newfound altitudes of success.
It’s exciting to see Thai Airways on the road to recovery. I’m always rooting for airlines to succeed, especially after such a tough pandemic period.
Yes, but I worry about the debt they still have. 40 billion baht is a lot to handle, even with successful restructuring.
True, debt is scary. But they’ve shown they can bounce back—I think they have a solid plan.
I’m not convinced yet. What happens if something unexpected hits again? Airlines are risky.
The capital restructuring plan seems promising. If executed well, it could stabilize Thai Airways financially, allowing them to focus on growth.
I agree! With such strategic reforms, there’s definitely hope for a bright future. What do you think about their projected timeline for SET relisting?
Mid-next year sounds optimistic, but feasible if they meet their milestones. It’s ambitious but achievable if all goes to plan.
Piyasvasti’s plan is ambitious, but I can’t help wondering if it’s just too risky. What if it backfires and they end up in even more debt?
High risks can lead to high rewards too, Sally! They could become a prime example of a successful turnaround story.
I just hope all these financial moves don’t translate into increased ticket prices. As travelers, we bear the cost!
It’s interesting how they’re using a data-driven approach with indicators like ASK. In the digital age, metrics are key for success.
Definitely! Metrics provide an objective view to gauge progress, and ASK is a smart way to measure capacity.
Exactly! I hope they continue to leverage technology for operational efficiency.
The government’s involvement raises some questions about future influence on business decisions. Will Thai Airways really have full control?
A valid point. Government ownership often complicates things. But sometimes, they provide much-needed stability.
True, stability is important. Let’s hope it doesn’t stifle innovation in the long run.
The new ‘Fly for The New Pride’ motto is cheesy. Does a slogan even matter if the service is lacking?
Slogans might seem cheesy, but they’re part of branding which is crucial in boosting morale both inside and outside the company.
I see your point. As long as it translates into actual improvements, I guess it’s okay.
I believe in Thai airway’s leadership. They are truly dedicated! This restructuring could be what saves them.
I’m cautious. Fluctuations in global oil prices could severely impact their operating costs and financial stability.
This profit surge is a great sign! More passengers mean more revenue. I think Thai Airways is on the right track.
I had a great experience flying with them recently, so I’m hopeful that word of mouth will help restore their reputation quickly.
I’m not so convinced. Air travel is increasing, but what if there’s another global slowdown?
There’s always risks, Dave, but they just can’t stand still out of fear. Progress requires bold moves.
To those concerned, restructuring doesn’t mean they will dissolve. It’s a way to optimize and enhance efficiency.
I understand restructuring helps, but sometimes companies fail to execute them properly.
Let’s just appreciate the hard work the Thai Airways team is doing. It’s not easy coming out of bankruptcy.