Five years after filing for bankruptcy protection, Thai Airways International is preparing to emerge from its financial restructuring with an ambitious plan to expand its fleet. The national carrier, under the leadership of court-appointed debt administrator Piyasvasti Amranand, aims to double its aircraft numbers and resume trading on the Stock Exchange of Thailand in the second quarter of 2025.
Piyasvasti, a veteran economist and former airline executive, was brought in by then-Prime Minister Prayut Chan-o-cha in 2020 to spearhead a recovery plan after Thai Airways had suffered annual losses since 2013. The airline’s restructuring has since placed it on firmer financial ground, enabling it to secure major aircraft orders and boost operational capacity.
Financial Recovery and Expansion Plans
Thai Airways has capitalized on its improved financial standing by ordering 45 Boeing aircraft, with options for an additional 35, as part of its international expansion strategy. The carrier plans to increase its fleet to 143 aircraft by 2029, up from 77 in September 2024, as outlined in a November 2024 company presentation. This growth aligns with the airline’s strategy to expand routes to key international markets, including Europe, China, and Australia.
The airline’s resurgence is reflected in its financial performance. It recorded a net profit of 15.2 billion baht in the first nine months of 2024, building on a 28-billion-baht profit in 2023. This marks a stark contrast to the record loss of 141 billion baht in 2020 when the Covid-19 pandemic forced widespread flight suspensions.
Industry analysts have taken note of Thai Airways’ turnaround. “The speed of recovery has exceeded expectations,” said Weera Wongsan, president of the Federation of Savings and Credit Cooperatives of Thailand, which holds investments in the airline’s bonds and stocks. “Many creditors anticipated a far longer and more difficult recovery period.”
Challenges and Market Competition
Despite the positive trajectory, Thai Airways faces headwinds as post-pandemic travel demand stabilizes and airline competition intensifies. Increased seat availability has led to downward pressure on ticket prices, according to Tiwa Shintadapong, president of the Investors Association of Thailand.
Furthermore, the airline’s restructuring involved significant workforce reductions, with employee numbers shrinking from 28,000 to approximately 13,000 in 2021 before rebounding to nearly 17,000 in 2023. This downsizing was a critical component of the financial recovery plan, coupled with asset sales and cost-cutting measures. “Letting go of long-serving employees was a difficult but necessary step to ensure the survival of the airline,” Piyasvasti explained.
Capital Restructuring and Future Outlook
A key milestone in Thai Airways’ recovery was the completion of a 76-billion-baht capital restructuring, which included a debt-to-equity swap with creditors and a rights offering. The resulting financial stability has positioned the airline to formally exit court-mandated debt rehabilitation in the second quarter of 2025.
Beyond fleet expansion, Thai Airways has sought alternative revenue streams, including the sale of non-core assets. Notably, it launched a Bangkok-based airplane-themed restaurant serving in-flight meals and offered flight simulation experiences to generate additional income during its financial struggles.
Piyasvasti, who previously helped the airline navigate financial difficulties in 2009, indicated that he intends to step back from full-time executive responsibilities once the rehabilitation process concludes. “This has been an incredibly demanding period, and I don’t plan to take on another full-time role after this,” he said.
Industry executives, investors, and airline officials gathered in Singapore for the Aviation Festival Asia to discuss Thai Airways’ progress and the broader aviation landscape, including sustainability initiatives, artificial intelligence integration, and evolving passenger loyalty strategies. As the airline prepares for its next chapter, stakeholders will be watching closely to see whether it can sustain its recovery momentum in an increasingly competitive market.
