The CEO of Thai Airways International (TG, Bangkok Suvarnabhumi) is confident the carrier will exit the business rehabilitation process by the third quarter of 2024, around three months earlier than expected, and relist on the Stock Exchange of Thailand (SET) soon after - towards the end of the first quarter of 2025.
Speaking to the Thai language Economic Base outlet, CEO Chai Eamsiri said business at the airline had improved significantly this year, and the rehabilitation plan was progressing well. Eamsiri said over the next 12 months, taking the airline up to when it expects to leave the rehabilitation process, he expects Thai to post EBITA earnings of approximately THB20 billion baht (USD568.7 million). As of June 30, 2023, the airline had a cash balance of over THB51 billion (USD1.45 billion) and is targeting flying nine million people over calendar 2023. The airline and its subsidiaries have now posted profits for the past four quarters.
Easmiri said Thai had 47 aircraft flying and was in the process of leasing eleven A350-900s to bolster capacity. Two of those A350-900s arrived, including HS-THO (msn 351) in May and HS-THP (msn 355) in June. Both come on leases from Avolon. ch-aviation research has identified the third A350-900 as OE-IPX (msn 245), currently undergoing maintenance and repainting in Thai livery at Malta International. The aircraft, also provided by Avolon, is expected to be re-registered as HS-THR.
Separately, Easmiri said work to dissolve low-cost subsidiary Thai Smile (Bangkok Suvarnabhumi) was proceeding as planned, with the aircraft and employees to fold into Thai's operations. The two airlines presently command a 28.6% passenger market share at Bangkok's Suvarnabhumi Airport. The CEO says all Thai Smile aircraft and employees will transfer across to Thai by February 2024. The ch-aviation fleets module shows four Thai Smile A320-200s have moved over so far, with those aircraft now flying for Thai between Bangkok and Delhi International, Dhaka, Mumbai International, Phnom Penh, and Yangon. Thai A320-100 flights to Vientiane will also start on August 15. Easmiri added that Thai intends to expand the range of destinations it flies to from the present 57 as more aircraft arrive.
Despite the upbeat tone from the Thai C-suite bunker, the airline remains burdened with debts of THB240 billion (USD6.8 billion). However, Easmiri says the current cash balance and incoming revenues mean it is possible to start servicing the debts. That will take the form of annual interest only payments of TBH10 billion (USD284.4 million) through to 2025, with repayments of the principal then expected to start and wrap up by the end of FY2031.
