Thai Airways to Sell Off More Aircraft Over Liquidity Issues

Thai Airways’ has cut more than 44.8 billion baht in cost this year and made a large portion of its revenue from cargo transport, according to a panel overseeing a court-monitored debt rehabilitation plan of the struggling airline.

Since rehabilitation was approved by a Thai bankruptcy court, Thai Airways has undertaken programs to seriously curb costs and expenses. The airline has also improved its workforce and operational efficiencies, the panel said.

The restructuring of the company has been aimed at increasing revenue flow while revising Thai Airways’ corporate vision. Furthermore, to maintain premium quality, full inflight services.

Thai Airways has set out priorities to keep its cost of operations competitive and to become a leader in commercial aviation.

Under the airline’s rehab program, more than 400 projects and programs have been implemented, resulting in costs being eliminated by more than 44.8 billion baht in 2021. The figure accounts for 77% of the airline’s cost-cutting goal to be achieved through business reforms.

Thai Airways to expand Puff & Pie bakery

From April to October 2021, Thai Airways’ was able to earn revenue of more than 10 billion baht. Above all from transporting cargo and which brought in 4.8 billion baht from serving some 80 airline clients.

The carrier also expects to ramp up its revenue stream by expanding its franchise of the Puff & Pie bakery and Thai food catering outlets.

The panel said the carrier plans to raise as much as 50 billion baht in new capital as it tries to expand flights during the country’s reopening to foreign tourists.

Thai Airways will borrow 25 billion baht from its existing creditors and financial institutions. It will also seek another 25 billion baht from the Thai government.

“Our biggest problem is liquidity,” the panel said the airline needs cash to run its operations.”

The national carrier is also looking to downsize its fleet size from 100 to 58 aircraft. This would net about 8 billion baht in cash. The panel said the airline expects to turn a profit by 2023.

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