Thai Airways union threatens action over government “interference” in its recovery. Protests the proposed addition of two officials to its rehab panel. Rally set for Nov 8 as union demands management independence, recalling an alleged lack of support in 2020.
Thai Airways’ union is up in arms at belated attempts by the government to exercise control over a resurgent Thai Airways. In short, the airline union is threatening industrial action if the government does not withdraw plans to place two additional executives on the airline’s panel overseeing its rehabilitation plan. It comes days after People’s Party deputy leader Sirikanya Tansakul, MP, flagged the issue. In particular, the airline union resents the government’s intervention after it failed to help in May 2020, when the then-struggling airline was placed in bankruptcy.
The Thai Airways Workers Union (TAWU) has announced a rally on November 8, 2024, at the Thai Airways headquarters. The protest demonstrates opposition to what the union considers undue government interference in the airline’s management.
This rally comes as Thai Airways has recently returned to profitability and is on track to relist on the Stock Exchange of Thailand (SET) in 2025.
The union’s position is clear. It strongly opposes the government’s recent proposal to add two officials to the rehabilitation committee overseeing Thai Airways’ recovery plan.
Union voices concern over government moves to appoint officials, fearing threats to airline’s independence
This committee is responsible for transitioning the airline from state control to a fully independent, publicly traded company. However, the government’s move to increase its representation, with officials from the Ministry of Transport and the Ministry of Finance, has raised concerns about potential political overreach.
On Thursday, Deputy Prime Minister and Transport Minister Suriya Jungrungruangkit defended the appointments. He argued that the representatives — Mr. Panya Chuphanich, Director of the Office of Transport and Traffic Policy and Planning, and Mr. Pholjak Nimwattana, Deputy Director of the State Enterprise Policy Commission Office — are essential for guidance, not control.
Suriya explained that the appointments are intended to support the airline as part of a broader aviation strategy for Thailand. He noted that these officials have valuable expertise that can help Thai Airways maintain both national and commercial priorities.
Suriya emphasised that the Ministry of Transport does not aim to influence Thai Airways politically. Instead, it seeks to improve efficiency as Thailand positions itself as a global travel hub. He reassured stakeholders that the government’s focus is to ensure the airline’s smooth operation in alignment with national interests.
Union criticism escalates as government intentions questioned amid concerns of past neglect in crisis
TAWU, however, remains unconvinced. In a recent social media post, the union expressed frustration, accusing government agencies of failing to assist Thai Airways when it faced bankruptcy in 2020.
At that time, the airline underwent a strict recovery process, cutting its workforce and restructuring operations. Union leaders feel that government interest in Thai Airways, now that it has returned to profitability, is problematic and could hinder its independence.
The union also encouraged Thai Airways employees, particularly minor creditors, to participate in an online creditors’ meeting on November 8 at 10:00 a.m. TAWU sees this as a chance to collectively reject the government’s proposal for additional committee members. Its message is direct: Thai Airways should not fall under political control as it prepares to operate independently.
In addition to TAWU’s opposition, some members of Thailand’s opposition have voiced similar concerns. People’s Party economic spokesperson, Sirikanya Tansakul, questioned the government’s intentions, warning that increased state influence could be harmful.
Opposition officials warn new appointments may lead to financial issues reminiscent of past challenges
She expressed concern that the government’s recent actions could result in more political control over the airline, potentially replicating past conditions that led to financial troubles.
In contrast, Thai Airways’ management remains committed to an independent, commercially driven future. CEO Chai Eamsiri has reaffirmed the airline’s focus on delivering shareholder value.
Thai Airways has undergone a comprehensive restructuring, cutting costs and streamlining operations. Eamsiri’s strategy involves expanding the fleet and routes to make Bangkok a central travel hub in Asia, a vision that aligns with Thailand’s broader economic goals.
Over recent months, Thai Airways has played an essential role in reviving Thailand’s tourism sector. British Airways recently resumed flights to Bangkok, with more services planned for early 2025.
Tourism Minister Surawong Thienthong reported that Thailand expects nearly one million visitors from the United Kingdom alone this year. Thai Airways’ role in supporting this influx of high-spending tourists highlights its economic importance.
Industry experts warn of conflicts between government’s role and airline’s independent, profit-driven strategies
Still, analysts worry about possible friction between the airline’s management and any new government-appointed committee members.
The current rehabilitation plan, approved by the Bankruptcy Court, required significant restructuring to restore profitability.
Thai Airways reported ฿165.49 billion in revenue for 2023, a significant jump from ฿105.21 billion in 2022. In 2024, the airline projects a further 15.2% increase in profits, setting the stage for a successful relisting in 2025.
Despite its financial recovery, Thai Airways still faces challenges. The airline has a negative shareholder value of ฿40.42 billion, although it maintains cash reserves exceeding ฿80 billion. To further strengthen its position, the airline plans to expand its fleet from 77 to 150 planes by 2025. This growth is part of its strategy to solidify Bangkok’s status as a central travel hub.
People’s Party economic head questions the government’s plans for Thai Airways after new moves
For TAWU and its supporters, the priority now is ensuring the government respects Thai Airways’ independence. The November 8 rally underslines the union’s determination to prevent what it views as political interference.
With Thai Airways on the cusp of a new chapter as a fully independent airline, the protest and upcoming creditors’ meeting could significantly influence its path forward.
The rally is scheduled to begin at 8:00 a.m. in front of Thai Airways’ headquarters. Many union members and stakeholders are expected to attend. This moment marks a turning point for Thai Airways, as decisions made now may shape its future role in Thailand’s economy and the global aviation industry.
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Further reading:
People’s Party economic head questions the government’s plans for Thai Airways after new moves
Thai Airways to refloat on Stock Exchange in June 2025 with a renewed mission as national carrier
Passenger complaint turbulence as Thai Airways appears to plot sky-high Dreamliner expansion
Passengers to finally get refunds from high-flying Thai Airways still facing financial turbulence
Flying high at Thai Airways as numbers skyrocket as it flies tourists into the kingdom from Europe
Thai Airways seeking business rehabilitation plan that has the unanimous support of it’s creditors
