Thai Airways plans to complete its debt restructuring this year and resume stock trading in the second quarter.
Five years after Thai Airways International initiated bankruptcy protection, the airline’s court-appointed debt administrator, Piyasvasti Amranand, plans for an aggressive international expansion.
Then Thailand’s prime minister, Mr. Prayuth Chan-Ocha, appointed Piyasvasti to take control of the airline and devise a recovery plan after recording losses every year from 2013.
Thai Airways plans to complete its debt restructuring this year and resume stock trading in the second quarter.
Thai Airways placed an order last year for 45 Boeing Co. planes, with the option of an additional 35, which increased the flight capacity.
Weera Wongsan, president of the Federation of Savings and Credit Cooperatives of Thailand, who invested in the airline’s shares, is impressed by Thai Airway’s quick recovery when most financiers expected a long and painful recovery process.
The turnaround is evident in its financial statements, which show that it has improved its reputation and service quality.
Thai Airways reported a net income of 15.2 billion baht ($449 million) in the first nine months of 2024, adding the 28 billion baht profit in 2023, a significant rebound from a historic loss of 141 billion baht in 2020 during the Covid pandemic.
In an interview in Singapore for the Aviation Festival Asia for sustainability, artificial intelligence, and passenger loyalty, Piyasvasti stated that the company’s financial position has improved due to successful debt rehabilitation and its increase in earnings.
Thai Airways expects its airplanes to increase to 143 in 2029 from 77 in September 2024. The airplane plans to expand its routes to Europe, China, Australia, and other international countries. By 2029, it expects to transport 35% of passengers passing through Bangkok’s Suvarnabhumi International Airport, an increase from 26% last year.
Tiwa Shintadapong, president of the Investors Association of Thailand, states that the demand for air travel increased after the pandemic, and heavy competition caused everyone to lower ticket prices.
Thai Airways is planning an ambitious path sooner than creditors anticipated, stated Somboon Sangrungjang, a lawyer at Kudun & Partners Co. and adviser on the airline’s creditor committee.
The recovery plan for Thailand’s biggest corporate debt crisis was to lay off over half of its 28,000 employees for around 50 billion baht in new loans and cash, as noted by Piyasvasti, who previously served as the airline’s president from 2009 to 2012.
The number of employees reduced to about 13,000 by 2021 before increasing to nearly 17,000 last year. The airline also disinvested around 30% of its airlines in 4 years through 2023.
Piyasvasti, who is part of the three-member debt administration team and has the final authority on company decisions, expressed that it was difficult to let go of many colleagues who served the company for a long time. But it was the last resort to save the company and the remaining employees’ jobs.
Piyasvasti raised cash by selling the airline’s assets. It included a Bangkok restaurant that resembles the plane that serves inflight meals. They gave the public flight simulation experience, which gave additional cash.
Piyasvasti earned a PhD from the London School of Economics and used his previous company’s turnaround skills to resolve Thai Airways difficulties.
Piyasvasti stated that Thai Airways made a 76-billion-baht capital reorganization by debt-to-equity swap with creditors. It helped turn the shareholder’s equity into a surplus, which helped airlines get court permission to get out of the debt plan.
In 2009, Piyasvasti, during his initial tenure at Thai Air, rescued the airline from financial problems amidst rising fuel prices during a global economic slowdown. A year later, it reported a net income after a 2008 historic loss.
After the debt rehabilitation exit, Piyasvasti, also the president of the Ski and Snowboard Association of Thailand, said he intends to take a slight break from his role at Thai Airways.
When he was the energy minister 20 years ago, he was in charge of restructuring the country’s power and oil industries. He was also the chairman of PTT, the largest oil business in the country at the time. He oversaw the listing of PTT and Electricity Generating, a state-owned power company.