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Thai Airways aims to complete its restructuring by 2024

The optimization of the airline’s performance and the recovery of international tourism should allow Thai Airways International to complete its restructuring by 2024.

Mr. Piyasvasti Amranand, head of the airline’s restructuring committee, said last Friday that the cabin occupancy rate, which measures an airline’s ability to fill seats, reached 70 percent last month and was close to 90 percent on European flights.
The airline filed for bankruptcy last year to pay off 400 billion baht (US$11.25 billion) of debt and had previously borrowed 50 billion baht to generate cash flow.

The airline will be further privatized after its restructuring from the current 67 percent share of the company owned by Thai state agencies to about 40 percent by 2024.

The restructuring includes the reintegration of Mr. Piyasvasti, former president of the company who had already assisted the company ten years ago in previous reorganizations to get it out of financial difficulties.

The national airline carried about 19 million passengers before the pandemic and is now targeting 9.18 million next year, hoping to grow to 11.8 million by 2024 and 12.44 million by 2025.

Thai Airways handled 4.48 million passengers in the first six months of this year.

The head of the restructuring committee said the company had reviewed its financing requirements and would take out long-term credit of 12.5 billion baht, which could be converted into shares. Mr. Piyasvasti Amranand added that short-term credits of the same value without conversion options were also being considered.

In addition, Thai Airways plans to issue new shares and offer debt-to-equity conversion options to creditors.

In addition, Mr. Piyasvasti said the airline had sufficient cash of about 14 billion baht and had raised about 9.2 billion baht by selling assets, including a training center in Bangkok, adding that 12 aircraft would be sold.

Thai Airways is not the only airline to face difficulties, with the majority of Southeast Asian carriers hit hard by the Covid 19 pandemic, as Malaysia Airlines, Garuda Indonesia and Philippine Airlines also underwent legal restructuring.

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