Thai Airways to borrow less amid recovery

Thai Airways to borrow less amid recovery

Seats originally from an Airbus 330 aircraft are sold by Thai Airways International via live streaming in March. The seats  were sold in under one minute. The airline has sold and decommissioned several aircraft from its fleet as part of its financial restructuring effort. (Photo: Varuth Hirunyatheb)
Seats originally from an Airbus 330 aircraft are sold by Thai Airways International via live streaming in March. The seats were sold in under one minute. The airline has sold and decommissioned several aircraft from its fleet as part of its financial restructuring effort. (Photo: Varuth Hirunyatheb)

Thai Airways International (THAI) requires only half the money which it initially estimated would be needed for recapitalisation, given its consistently positive performance, a high-level meeting was told.

The meeting on Wednesday was attended by airline executives, those in charge of the carrier's rehabilitation plan, senior officials at the Finance Ministry, Fiscal Policy Office director-general Pornchai Thiraveja and State Enterprise Policy Office (Sepo) director-general Pantip Sripimol.

The meeting -- held to follow up on THAI's financial rehabilitation -- was chaired by Deputy Prime Minister Wissanu Krea-ngam.

Emerging from the meeting, Ms Pantip said those who participated were updated on the progress of the airline's rehabilitation after the Central Bankruptcy Court in October approved THAI's revised business reorganisation plan.

It was presented following a better-than-expected recovery from the most financially trying period in the national carrier's history.

Despite improvements in the airline's operational performance and balance sheet, helped by a solid recovery in tourism, THAI will still need to comply strictly with the rehab plan with the government's oversight, Ms Pantip added.

THAI recently released the performance results of the company and its subsidiaries in the third quarter. Its operating profit, excluding one-time transactions, amounted to 3.9 billion baht, compared to the 5.3-billion-baht loss in the same period last year. Total revenue was 32.86 billion baht, higher than the same period last year by 582%.

Ms Pantip said the meeting was also told that THAI was on track to emerge from rehab by 2025.

THAI's liquidity has returned after the reopening of borders prompted by the easing of the Covid-19 pandemic, which has increased air travel demand. For this reason, the airline will need to borrow less than originally planned to finance its operations and recapitalise. The airline has cut its borrowing target of 50 billion baht by half.

Ms Pantip said despite the improvements, the airline still needs loans to maintain its liquidity and drive business growth.


Do you like the content of this article?
COMMENT (25)

Tuhao 'nominee' grilled

Patcharin Ittiwattana, an alleged close aide and Thai nominee of Chinese businessman and suspected crime boss Chaiyanat "Tuhao" Kornchayanant, appeared with her lawyer on Tuesday for another interrogation session conducted as part of an ongoing investigation into a major Chinese criminal syndicate operating in Thailand.

07:02

US judge dismisses suit against Saudi prince in Khashoggi murder

WASHINGTON - A US judge dismissed Tuesday a lawsuit against Saudi Arabia's Crown Prince Mohammed bin Salman for his alleged role in the 2018 murder of dissident journalist Jamal Khashoggi.

06:45

Axa predicts substantial revenue growth

Axa Insurance Plc aims to increase its revenue to 5.2 billion baht in 2023, up from an estimated 4.8 billion this year.

06:44