Thai Airways, the flag carrier of the Kingdom of Thailand, is in talks with the two aircraft manufacturing giants Airbus and Boeing for over 90 new aircraft, according to a report by Reuters.
Whichever aircraft the airline chooses, the deal involves potentially purchasing more than 90 aircraft. It is too early to speculate which manufacturer the airline is leaning towards, but it is possible the order will include a mix of both Airbus and Boeing aircraft.
The Thai airline is capitalizing on the growth of air travel in the region. The potential 95 aircraft order would not be an unimaginable move, given the circumstances of air travel back in 2020 -2021.
Still cleaning up the mess
THAI’s move appears to send a signal that its financial situation is well clear of the red. However, this is not entirely true. The airline is in the midst of staff and debt restructuring, and is currently under bankruptcy-protected debt restructuring.
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Not long ago, there were reports about the airline looking for 30 jets, but Thai executives felt that the baseline had changed. The need for 95 narrow and widebody jets seems to fit the current macro-economic patterns
According to Reuters, the airline plans to order up to 15 narrow-body jets and 80 wide-body jets, making this new round of ‘deal’ the largest of many decades for Thai Airways. Could this see a return to the glory days of Thai Airways?
Back in June, Chai Eamsiri, the Chief Executive Officer of Thai Airways announced that the airline would close a deal on 30 widebody jets by the end of this year. This though can change.
The Great Rebound
Thai Airways is looking to capitalize on the rebound of the pandemic dent but is also looking to rebound its image and greatness.
The airline has been financially struggling since the late 2010s due to mismanagement and inefficiencies. Here they are using this re-bound moment to bounce back better.
According to Reuters, the airline began restructuring its debts worth 400 billion baht or $11.17 billion in 2021. As part of the restructuring, the airline has decided to induct 20 Airbus A320 from its subsidiary of Thai Smile to THAI.
Moreover, the airline has also secured a slot for 12 new Airbus A321neo, slated for deliveries between 2025 and 2026.
Thai operates a mixed fleet of legacy and modern airliners, which explains why the airline suffers many consistency complaints. They operate a fleet of 787s A350s Boeing 777-300ER and the older Boeing 777-200ER and A330s.
THAI’s Finance
Despite the ongoing debt restructuring fiasco, The airline swung into a net profit of 2.2 billion baht or $61.8 million in the second quarter of this year from a 3 billion baht loss in 2022 according to Reuters.
The airline has been making losses nearly every annum since 2012 to 2021. With the company’s finances looking brighter than ever, the airline is aiming to soar high and become one of the world’s greatest airlines.
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