Thai Airways plans to relist on the Stock Exchange of Thailand in June 2025, following its exit from rehabilitation. CEO Chai Eamsiri outlines ambitious expansion, reaffirming the airline will not revert to state ownership while positioning Bangkok as its global hub.
Thai Airways is reporting sky-high profile plans to exit rehabilitation and return to the stock market in June 2025. This week, Chief Executive Officer Chai Eamsiri further suggested that the national carrier will not return to being a state enterprise. At the same time, he outlined ambitious plans to make Bangkok the international hub for the expanding carrier, which sees its core mission as flying in and out of Thailand.
Thai Airways Chief Executive Officer Chai Eamsiri has outlined bullish new plans to fly the airline out of administration by May 2025. In addition, the national flag carrier plans to return to the Stock Exchange of Thailand (SET) in June 2025. Presently, the airline still has a negative shareholder value of ฿40.42 billion on its books.
However, at the same time, it has over ฿80 billion in cash while its profits are surging. Net profits in the second quarter of 2024 are projected to be ฿12.63 billion, reflecting a 15.2% growth from last year.
Indeed, 2023 was a highly successful year for the resurgent airline, which notched up ฿165.49 billion in sales.
Passenger growth and sales surge as Thai Airways expands routes and boosts financial performance
Correspondingly, the airline flew 13.8 million passengers, up by 9 million from 2022. Certainly, in that year its sales were a full ฿105.21 billion behind what it achieved last year.
In summary, sales at the airline are surging as it extends its wings, flying more routes. An upbeat Mr. Chai this week made clear that the airline does not wish to again become a state enterprise.
However, he promised that its expansion plans would see Bangkok become Thai Airways’ global hub. At the same time, the mission of the revamped airline was in no dount. In short ,it would primarily be about serving passengers in and out of the kingdom.
“No one wants Thai Airways to return to being a state enterprise. Being a state enterprise has obstacles in doing business.
The roles of being a state enterprise and being a public company are quite different because a public company operates to create returns for shareholders.
But operating under a state enterprise means following government policy and social policy more than anything else, which makes the two statuses conflict,” he explained.
Thai Airways plans to expand its fleet while working through court-approved debt restructuring
Presently, Thai Airways flies to 62 different destinations in 27 countries. The airline has 77 aircraft in service with 803 flights per week.
However, under its long-term expansion plans, it would expand the fleet to 143 planes, including 91 wide-bodied aircraft and 52 narrow-bodied ones. Indeed, by 2023, this number is expected to increase again to 150 aircraft, with 98 wide-bodied and 52 narrow-bodied planes.
However, right now the focus of management is a court-approved creditors meeting scheduled to take place in November.
In brief, the airline is planning a debt-to-equity swap ahead of its end-of-year financial statements, which are expected to reflect this in February 2025. After that, a shareholders meeting in April 2025 is expected to approve a new Board of Directors.
Key leadership changes expected as Thai Airways finalises rehabilitation plan and gears up for relisting
Certainly, Mr. Chai expects that one of the parent present company’s executives will join the board. In effect to ensure continuity of management as the airline enters a new era.
The appointment of a new board would fulfil the last of several conditions outlined in the court-approved rehabilitation plan.
In addition, April 2025 will see a petition to the Central Bankruptcy Court. In particualar, to allow the company to exit its rehabilitation process. The airline entered bankruptcy in May 2020.
Thai Airways files for bankruptcy and gets court protection here as heavyweights are brought on board
Passenger complaint turbulence as Thai Airways appears to plot sky-high Dreamliner expansion
In turn, the plan should see Thai Airways exit the scheme in May 2025. After that it will relist on the Stock Exchange of Thailand (SET) in June 2025.
At the same time, the directors have put forward plans to issue 9.8 billion new shares at a value of not less than ฿2.542 and a reasonable value of ฿25 billion as of September 30, 2024.
This share offer, together with adjustments in the rights of existing shareholders and rights holders, will be part of the final settlement to allow the company to fulfil the rehabilitation process. Consequently, it will also relist on the Stock Exchange of Thailand (SET) in June 2025.
Join the Thai News forum, follow Thai Examiner on Facebook here
Receive all our stories as they come out on Telegram here
Follow Thai Examiner here
Further reading:
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
