Following a couple of difficult years amid the challenging backdrop of the coronavirus pandemic, many of the world's airlines are now looking to forge a strong recovery. THAI Airways is one such carrier, and it recently received endorsement for revisions to its rehabilitation plan. Let's take a closer look at the matter.

Strong support

According to Bangkok-based publication The Nation, a vote held today by Thailand's Central Bankruptcy Court saw the Star Alliance carrier receive strong support for the revision of its rehabilitation plan. Indeed, 78.6% of the creditors involved are said to have backed the move, including those from the Ministry of Finance.

THAI Airways will be hoping that this decision will set it up nicely for a strong post-pandemic recovery. According to The Nation, strong performance from the airline in the coming years could see it return to the stock market as early as 2025.

THAI Airways' rehabilitation plan has been an ongoing matter that predates the coronavirus pandemic. Indeed, the carrier initially filed for bankruptcy in 2019, amid debts that exceeded $6.4 billion (245 billion Thai Baht, in the local currency). Earlier this year, the airline filed for the revision in an attempt to exit the plan sooner.

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The revisions and next steps

A key part of the revisions that Thailand's Central Bankruptcy Court has approved regarding THAI Airways' rehabilitation plan is the fact that the carrier isn't asking for as much money. Indeed, the funds requested will now only be 25 billion Thai Baht ($650 million) by 2024, compared to 50 billion ($1.3 billion) as initially allowed.

Going forward, the Bangkok-headquartered airline is aiming to increase its capital, as well as undertaking debt-to-equity swaps. It will do so in collaboration with its shareholders and creditors, with the assistance of a financial advisor.

While recent years have certainly been challenging for THAI Airways, the carrier does now seem to be in a more sustainable position. Indeed, The Nation notes that it is now registering average passenger load factors in the region of 80%. Furthermore, it has amassed a 20 billion Thai Baht ($523 million) cumulative cashflow. Simple Flying has contacted the airline for further information on the matter.

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All change

As it happens, the rehabilitation plan isn't the only area where change is afoot at the Bangkok-headquartered carrier, whose full name is Thai Airways International Public Company Limited. Indeed, the airline is also looking to make certain shifts in its leadership structure. These go right to the top of the hierarchy.

Indeed, as Simple Flying reported last month, THAI Airways has also ramped up its search for a new Chief Executive Officer. Suvadhana Sibunruang has been serving as the airline's acting CEO since Chansin Treenuchagron resigned in 2021, but the airline is now ready to appoint someone more concretely. The job is listed on LinkedIn, and open for applications until October 25th.

What do you make of THAI Airways' recovery prospects? Have you flown with the airline in recent months? Let us know your thoughts and experiences in the comments!

Source: The Nation

• 

  Thai Airways

  IATA/ICAO Code:

  TG/THA

  Airline Type:

  Full Service Carrier

  Hub(s):

  Bangkok Suvarnabhumi Airport

  Year Founded:

  1960

  Alliance:

  Star Alliance

  CEO:

  Suvadhana Sibunruang

  Country:

  Thailand