In a triumphant turn of events, Thai Airways (THAI) announced yesterday, June 16, that the Central Bankruptcy Court had officially approved the end of its rehabilitation process. This milestone marks a significant comeback for the airline, which now plans to relist its shares on the stock exchange by August. Sharing the news on its official Facebook page, THAI declared, “The Central Bankruptcy Court has ordered the termination of business rehabilitation. THAI is ready to move forward, building strength and sustainable growth.”
Back in 2020, the airline plunged into rehabilitation after enduring financial turbulence dating back to 2013. During those tumultuous times, THAI took some rather unconventional measures to stay afloat, from selling aircraft seats to spinning up a deep-fried dough stall. Desperate to bring in revenue, they even transformed part of their office into a cozy coffee café. Yet, just as the storm seemed to abate, the Covid-19 pandemic hit, amplifying THAI’s financial woes and forcing a suspension on its stock market trading. Prior to the suspension, THAI’s shares were fluttering at a mere 3.32 baht each, a fact chronicled by the Facebook page Money Lab.
The Central Bankruptcy Court had set four pivotal targets for the airline to accomplish as part of its revitalization blueprint, which THAI is proud to have successfully achieved. Thanks to these efforts, the once ailing giant can now stand tall once more.
Over the past four years, Piyasvasti Amranand, an executive board member and former chairman of the rehabilitation plan, has been steering the company towards clear skies. The airline restructured its organization, broadened its flight routes, upgraded its fleet, and embraced the latest digital systems to enhance services. Among the service upgrades, THAI welcomed passengers to exclusive lounges, elevated its in-flight services, and pushed its frequent flyer program, Royal Orchid Plus, to new heights.
With every passing quarter since 2023, THAI has been soaring to greater altitudes in terms of profits, even ranking among the top three global airlines in terms of operating profit margin over the last two quarters, as reported by Airline Weekly. It seemed the clouds had parted for THAI, finally revealing the sunshine.
Regarding its financial baggage, of the monumental debt tallying over 189 billion baht, THAI has commendably managed to repay 94 billion, with an optimistic timeline to discharge the remaining 95 billion by 2036. With the rehabilitation process officially wrapped up, the board of directors, along with key officials, convened to bestow the chairmanship upon Laworn Saengsanit, Permanent Secretary of the Ministry of Finance, marking a new chapter in THAI’s storied journey.
It’s great to hear THAI is recovering, but let’s not forget the financial mismanagement that got them here in the first place.
True, they made some ridiculous financial decisions back then.
Exactly, and who’s paying for their poor decisions? The taxpayers.
But they are turning it around; doesn’t that count for something?
But look at their current strategy, seems like they have learned from their mistakes.
Their decision to sell aircraft seats and make doughnuts was innovative but ridiculous. They seemed more like a circus than an airline at one point.
Creativity in the face of adversity is admirable, they had to survive somehow.
True, it was entertaining to watch, I’ll give them that!
Why is everyone so cynical? This is a massive achievement for THAI, showing real promise for future growth.
True, let’s celebrate their perseverance instead of dwelling on past mistakes.
Optimism is great, but they still have a long way to go to clear their debt.
This is textbook corporate comeback, they’ll be a case study soon enough.
Was penalizing the management team ever part of the plan? They should be accountable for the mismanagement.
That’s right! Executives rarely face any consequences for their actions.
I think some members left the company, so maybe that’s how accountability was managed.
If they’ve been increasing profits steadily, the stock market should react positively to their relisting.
Agree, I’m thinking of investing once they’re back on the market.
Expanding flight routes was a major move that showed their intent to dominate the market again.
Broadening horizons attracts more customers, smart move!
Curious to see how their new digital systems will perform.
How are they repaying the remaining debt? Just selling assets won’t be enough.
They probably have a new strategic plan aligned with revenue increases.
I worked for THAI during the tough times. It’s amazing to see how the company evolved.
Piyasvasti Amranand was crucial. Leadership like that makes the difference between sinking and swimming.