Thai Airways to Sell Off More Aircraft Over Liquidity Issues
Thai Airways has cut costs by more than 44.8 billion baht this year and made much of its revenue from freight transport, according to a panel overseeing a court-controlled debt recovery plan of the troubled airline.
Since the rehabilitation was approved by a Thai bankruptcy court, Thai Airways has undertaken programs to seriously reduce costs and expenses. The airline has also improved its workforce and operational efficiency, the panel said.
The restructuring of the company was aimed at increasing revenue streams while revising the corporate vision of Thai Airways. In addition, to maintain comprehensive and superior in-flight services.
Thai Airways has set priorities to keep operating costs competitive and become a leader in commercial aviation.
As part of the airline’s rehabilitation program, more than 400 projects and programs have been implemented, eliminating costs of over 44.8 billion baht in 2021. This figure represents 77%. the airline’s cost reduction target to be achieved through trade reforms.
Thai Airways expands Puff & Pie bakery
From April to October 2021, Thai Airways was able to achieve a turnover of more than 10 billion baht. Mainly freight transport, which brought in 4.8 billion baht serving some 80 airline customers.
The carrier also plans to increase revenue by expanding its franchise of Puff & Pie bakery and Thai food outlets.
The panel said the carrier plans to raise up to 50 billion baht in new capital as it tries to expand flights when the country reopens to foreign tourists.
Thai Airways will borrow 25 billion baht from its existing creditors and financial institutions. He will also demand an additional 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 seeking to reduce the size of its fleet from 100 to 58 aircraft. This would bring in around 8 billion baht in cash. The panel said the airline expects to turn a profit by 2023.