Rehabilitation planned for Thai Airways

[Rockheart]

Thai airways was struggling before the pandemic, now it is trying to come up with a recovery plan.

Rehabilitation planned for Thai Airways International

https://www.pattayamail.com/travel/rehabilitation-planned-for-thai-airways-international-300058

Thai Airways must submit rehabilitation plan by end-May: official
https://www.reuters.com/article/us-t...-idUSKBN22O1XF

Why don’t Thais want to save Thai Airways from coronavirus tailspin?
https://www.scmp.com/week-asia/econo...virus-tailspin

Thai Airways on verge of B54bn loan
https://www.bangkokpost.com/business...-of-b54bn-loan

[rxpharm]

There is some additional news to this story - Thai Airways may need to undergo bankruptcy proceedings to secure additional funds quickly enough as reported by Simple Flying. Hopefully that won't be the case as it would cause current unused ticket holders to lose their ticket values.

[Rockheart]

It is getting worse:

THAI Airways registers first half loss of 28 billion baht

https://forum.thaivisa.com/topic/1177707-thai-airways-registers-first-half-loss-of-28-billion-baht

Thai Airways shares suspended after auditors decline to sign off on accounts

https://forum.thaivisa.com/topic/1177707-thai-airways-registers-first-half-loss-of-28-billion-baht/?do=findComment&comment=15713945

[flamingofarmer]

All airlines operate on the principal of cash flow. Think of it like this ..... just like a shark moving through the water for food while keeping a steady flow of water through its gills to extract oxygen to survive , airlines need a steady flow of passengers (like the water) to survive (cash is the oxygen). Without it, the shark needs life support system or it dies ; in the airline industry, that's cash from somewhere else ( gov't, restructuring loans etc) or it dies (bankruptcy and or liquidation or bankruptcy with restructuring). So this sort of scenario will be repeated to varying degrees as the year goes buy.
Aircraft leases, salary's, pensions and early retirement buy outs, furloughed pilots etc etc all all need to be paid.
In a recent forbes article¹, fourteen airlines around thd world have either filed for form of bankruptcy/bankruptcy protection or in some cases, larger established airlines have ceased operation and liquidated.
The issue with Thai is that its 51 % govt owned so they could bail themselves out but maybe its not worth it. In one of the articles sighted, it sounds like Thai Air is top heavy and fat.

1. https://www.forbes.com/sites/laurabe.../#4b4955d25f69

[flamingofarmer]

There is some additional news to this story - Thai Airways may need to undergo bankruptcy proceedings to secure additional funds quickly enough as reported by Simple Flying. Hopefully that won't be the case as it would cause current unused ticket holders to lose their ticket values.

" ........eight major airlines based in Thailand are seeing a bailout of $770m, which is being classed as a ‘soft loan.’ This means there will be interest applied, at a low rate of 2%, and the airlines will have five years from the start of 2021 to pay it back.

The eight airlines in question are Bangkok Airways, Thai AirAsia, Thai AirAsia X, Thai Lion Air, Thai VietJet, Thai Smile, NokScoot and Nok Airlines. Thai Airways was not one of the airlines included in this call for help, but is separately seeking $2.2bn in state aid to keep it afloat.. ".¹

The sharks are dying.


1.https://simpleflying.com/thai-govern...e-aid-request/

[Rockheart]

Even before the passengers disappeared Thai Airways had a lot of fin rot.
Thai seems like they got a whole bunch of planes 30 years ago and didn't change anything since.
There must have been lots of profits at one time, so where did it go? Maybe they were just too generous or unscrupulous.

Thai used to be known worldwide as the best airline but that quickly changed. The first time i flew on there the amount of fluff and extras was ridiculous.
I got a deck of playing cards and a bunch of other stuff flying economy in 2007. The ladies in the crew changed outfits 3 times on the flight.
As time went on, all the extras disappeared and things became meager. The planes just looked worse and worse every year.
Seems like it was just run into the ground. Still if it brings people there for tourism and they spend lots of money, maybe it is worth propping up.

[flamingofarmer]

Its a fat corporation. Top heavy and like anything with a degree of Gov't ownership, there's corruption and complacency in management.

[Rockheart]

Good thing Canada is not like that.....

[flamingofarmer]

We hanve Canadian Corruption. We're polite and sorry about it though.
But then there's Ottawa.

[Jaff88]

Thai Airways International’s rehabilitation planners are expected to submit a plan on 2 March to Thailand’s Central Bankruptcy Court outlining how they propose the airline should be restructured.

[karlgnter]

Their boom blust in the Airline Side of Pattaya