Last Updated on October 17, 2026 by Jeff Tomas
BANGKOK – Thai Airways began in 1960 as a small international airline, then grew into Thailand’s flag carrier and a founding member of Star Alliance. Decades later, heavy losses and debt forced the airline into court-supervised rehabilitation, where it reworked its finances and operations to stay in business.
That turnaround raises a central question: how did Thai Airways change to survive? Follow its key milestones from its first flight on May 1, 1960, through October 2026, including the decisions that shaped its growth, crisis, and recovery.
Key Takeaways
- Thai Airways began as a joint venture in 1960 and flew its first international route from Bangkok through Hong Kong and Taipei to Tokyo. Its official history traces the airline’s early milestones.
- The airline became fully Thai-owned, merged with domestic carrier Thai Airways Company in 1988, listed shares in 1991, and joined Star Alliance in 1997.
- After years of losses, Thai Airways filed for court-supervised rehabilitation in 2020. Its plan reworked debt and operations before the court ended the process in June 2025.
- Shares returned to trading in August 2025. By year-end, the airline operated 80 aircraft and carried 16.46 million passengers; in October 2026, repayment obligations under its plan remained.
Thai Airways History: From a 1960 Joint Venture to a Global Carrier
Thai Airways International began as an international airline backed by Thailand’s existing domestic carrier and Scandinavian Airlines System (SAS). Its early routes connected Bangkok with cities across Asia, before full Thai ownership and a 1988 merger brought the international and domestic operations together.
A Thai-SAS partnership launches the airline in 1960
Thai Airways International was formed in 1960 as a joint venture between Thai Airways Company (TAC), Thailand’s domestic airline, and SAS. The Thai government held a 70% stake, while SAS owned the remaining 30%. TAC and Thai Airways International were distinct carriers: one focused on domestic service, while the new venture built an international network.
On May 1, 1960, Thai Airways International operated its inaugural flight aboard a 60-seat Douglas DC-6B. The service departed Bangkok and flew via Hong Kong and Taipei to Tokyo. That route gave the young airline an initial link between Thailand and key East Asian destinations. Thai Airways’ official history records the founding and first-flight milestones.
Early routes connect Bangkok with Asia
As the network expanded, Thai Airways International added destinations including Rangoon, Calcutta, Kuala Lumpur, Singapore, Saigon, and Phnom Penh. These services gave travelers more direct connections between Bangkok and cities throughout South and Southeast Asia.
The growing international schedule also made Bangkok the center of the airline’s operations. Routes radiated from the Thai capital, linking regional destinations through one base. Meanwhile, TAC continued to operate domestic services, so Thailand had separate carriers for domestic and international travel.
Full Thai ownership and the 1988 merger
The SAS partnership ended as Thailand took full control of the international airline. Thai Airways’ official accounts give different dates for this transition: its timeline says 1977, while another company account gives 1978. Both describe the shift to full Thai ownership, so the exact year depends on which official history is consulted.
In 1988, the government merged Thai Airways International with Thai Airways Company. The merger joined the international carrier and TAC’s domestic airline under one company, bringing domestic and overseas operations together. It also ended the distinction between the two airlines that had shaped Thai aviation since the 1960 joint venture.
How Thai Airways grew its reach through privatization and Star Alliance
After becoming Thailand’s national airline, Thai Airways began opening its ownership to public investors and building closer ties with international carriers. These changes broadened the airline’s business connections, while the Thai state remained part of its story.
The 1991 share listing began a move toward privatization
In 1991, Thai Airways listed 100 million shares on the Stock Exchange of Thailand, a step the airline describes as the beginning of its privatization. The listing allowed public investors to buy shares and gave the company access to capital through the stock market. It also introduced greater public ownership and financial scrutiny.
However, the share sale did not mean the government immediately gave up its role. Thai Airways remained the national carrier, and the listing began a gradual shift in ownership rather than an instant transfer of control. The milestone linked the airline more closely to public markets as it developed its international business. Thai Airways’ account of its 1991 listing records the 100 million shares offered on the exchange.
A founding member of Star Alliance in 1997
On May 14, 1997, Thai Airways joined Star Alliance as one of its five founding airlines, alongside Lufthansa, Air Canada, SAS, and United Airlines. The group connected carriers through cooperation, allowing passengers to combine parts of a journey across member airlines rather than relying on one carrier for every leg.
For travelers, that can mean more ways to reach destinations beyond Thai Airways’ own flights. Partner networks can also make connections and travel arrangements easier across different airlines. Membership gave Thai Airways a place in a wider international network while supporting its role as Thailand’s flag carrier. Thai Airways’ history of its Star Alliance founding dates its membership to the alliance’s launch.
A growing global role brought new demands
A broader international role required Thai Airways to balance its national responsibilities with commercial competition. The airline had to serve travelers to and from Thailand while competing with carriers that also sought international passengers and partnerships.
At the same time, maintaining a broad network meant managing the demands of a larger business, including connections across markets and coordination with partner airlines. These institutional changes helped extend Thai Airways’ reach, but they also added complexity to its work as both a national carrier and an international company.
Why Thai Airways entered a court-led rehabilitation
Thai Airways entered court-led rehabilitation after years of losses and rising debt left its finances under severe pressure. The COVID-19 crisis added an abrupt collapse in air travel, making a court-supervised restructuring necessary. Rehabilitation meant reorganizing the airline, not closing it.
Financial strain led to a 2020 rehabilitation filing
Thai Airways had recorded losses for several years before the pandemic, while debt continued to build. Thai PBS later reported accumulated debt of about 400 billion baht during the crisis. That figure describes accumulated debt, not the same measure as other estimates reported for the airline.
When COVID-19 sharply reduced travel, the airline faced an even greater strain on its finances. On May 19, 2020, Thailand’s Cabinet approved a rehabilitation approach instead of a conventional state-funded rescue. Thai Airways filed its petition on May 26, asking the Central Bankruptcy Court to supervise its restructuring. The court approved the petition on September 14. Thai Airways’ timeline records the filing, while Thai PBS’s account of the court decision describes the scale of the debt.
The court-approved plan changed the business
On June 15, 2021, the Central Bankruptcy Court approved Thai Airways’ original rehabilitation plan. The plan called for financial and operational restructuring, including changes to the airline’s fleet and organization, as well as the integration of Thai Smile. These steps were designed to reshape the company so it could meet its obligations and continue operating. Reuters reported on the plan’s court approval.
The airline met the conditions to leave rehabilitation
A new board formed on April 18, 2025. Ten days later, the plan administrators asked the court to end rehabilitation. On June 16, the court issued its termination order after Thai Airways met the plan’s conditions: converting debt to equity, making repayments without default, reaching the required EBITDA benchmark, and appointing a new board.
The EBITDA target, measured after aircraft lease payments, was 20 billion baht; the airline reported 40 billion baht. Leaving rehabilitation ended court supervision, but it did not erase repayment duties. Thai Airways continued to owe payments under its plan after its exit.
Thai Airways Today: Trading Again, With Work Still Ahead
Thai Airways had returned to the stock market by October 2026, but its court-supervised rehabilitation exit did not settle every repayment obligation. Its operating and financial results also need to be read by reporting period, not treated as current figures.
Shares returned to trading in 2025
After trading was suspended during rehabilitation, Thai Airways shares resumed trading on the Stock Exchange of Thailand on August 4, 2025. The reported opening price was 10.50 baht, with market capitalization near 300 billion baht. Those figures describe the first trading day, not October 2026 valuations.
The return to trading followed the court’s June 16, 2025, order terminating rehabilitation. The airline’s July 2025 investor presentation provides company context from the period around its return to the market. However, ending court supervision did not cancel repayment terms under the restructuring plan. Reported obligations continued beyond the court’s order, with repayment expected to extend through 2036.
Passenger and profit figures show a changed airline
Thai Airways’ full-year 2025 results offer a dated snapshot of its business after restructuring. The airline reported an operating fleet of 80 aircraft, carried 16.46 million passengers, and posted consolidated net profit of 30.940 billion baht.
By the second quarter of 2026, the year-over-year picture was mixed. Revenue excluding one-off items rose 8.5%, while passenger numbers fell 7.8% and EBITDA declined 39%. Revenue growth alongside weaker passenger and EBITDA figures does not, by itself, establish a lasting recovery. These results describe different periods and measures, so they should not be collapsed into a single trend.
Separate verified history from claims about AI and talent
Themes such as flexible AI infrastructure, data sovereignty, and home-grown talent may appear in commentary about the airline, but available company, investor, regulatory, and rehabilitation materials do not verify them as Thai Airways programs or strategy. Those sources also do not establish a partnership or initiative called Mentio.
Treat such statements as unverified unless independent evidence supports them. For a history of the airline through October 2026, the documented milestones remain its return to trading, reported operating results, and continuing repayment obligations.
Frequently Asked Questions
Thai Airways’ history includes several milestones that can be easy to confuse, especially its ownership transition and rehabilitation. These answers clarify the dates and what the airline’s restructuring did and did not change.
When was Thai Airways founded?
Thai Airways International was established in 1960 as a joint venture between Thai Airways Company and Scandinavian Airlines System (SAS). Its first international flight took place on May 1, 1960, connecting Bangkok with Hong Kong, Taipei, and Tokyo. Thai Airways’ milestone history documents the early flight.
When did Thai Airways become fully Thai-owned?
Thai Airways’ official history gives two dates for the transition. Its timeline identifies 1977, while an anniversary account says the Thai government acquired the remaining SAS shares in 1978. Because the airline’s own sources differ, neither year should be presented as definitive.
Is Thai Airways still part of Star Alliance?
Thai Airways joined Star Alliance as a founding member in 1997. That milestone is part of its documented history, but the information available here does not verify its membership status as of October 2026.
Did Thai Airways shut down during its rehabilitation?
No. Rehabilitation was a court-supervised process to restructure the airline’s finances and operations, not a shutdown. Thai Airways continued operating while it worked through the court-approved plan.
Has Thai Airways finished paying its rehabilitation debts?
The court ended Thai Airways’ rehabilitation process in June 2025, but that did not cancel its repayment obligations. Thai PBS reported that repayments were expected to continue through 2036.
What is Thai Airways’ status as of October 2026?
Thai Airways was operating, and its shares had returned to trading in 2025 after the rehabilitation process ended. However, the airline remained subject to repayment terms under its plan, so exiting court supervision did not mean all financial obligations were complete.
