Thai Airways International Public Company Limited (THAI), Thailand’s national flag carrier, has entered its first collaboration with China Aircraft Leasing Group Holdings Limited (CALC).
The recent agreement involves the lease of nine Airbus A321neo aircraft, scheduled for delivery between 2026 and 2028.
The deal supports THAI’s fleet modernization and network expansion goals. It reinforces the airline’s recovery under a court supervised rehabilitation plan initiated in 2020.
This partnership not only strengthens THAI’s operational capabilities but also highlights its resurgence as a leading airline in Southeast Asia.
THAI Fleet Renewal Program
The Airbus A321neo aircraft, ably supports THAI’s fleet renewal program. These next generation aircraft reduce emissions, and lower operating costs.
They offer superior passenger comfort with features like lie-flat seats in business class. By integrating these aircraft, THAI aims to boost competitiveness on high-demand regional and international routes.
The new aircraft acquisitions support its goal of expanding to 100 aircraft by 2027 from its current 79.
This collaboration also marks a milestone for CALC, a key player in aircraft leasing in the Asia-Pacific. “We are proud to support Thai Airways’ fleet expansion,” said Winnie Liu, President and Chief Commercial Officer of CALC. “This deal strengthens our Southeast Asian presence and underscores our commitment to providing tailored, long-term fleet solutions.”
THAI Rehabilitation Plan
THAI’s rehabilitation plan, approved by the Central Bankruptcy Court in June 2021, addressed financial distress caused by a pre-COVID debt of over US$9.8 billion and pandemic-related losses. To date, key measures have included:
Financial Restructuring: A November 2024 debt-to-equity conversion reduced accumulated losses to near zero, despite a one-time accounting loss of 40,582 million baht.
THAI raised capital through asset sales, such as land in Phuket and Chiang Mai, generating US$37.4 million, and plans to issue 80 billion baht in bonds.
Operational Efficiency: THAI streamlined its fleet from 12 to 5 aircraft types and cut its workforce from 29,000 to 17,000, optimizing costs. The CALC lease supports this strategy with flexible, power-by-the-hour agreements.
Revenue Growth: In 2024, THAI achieved a 16.7% revenue increase to 187,989 million baht and an operating profit of 41,515 million baht, surpassing targets with a 22.1% EBIT margin.
Conclusion
THAI is set to exit rehabilitation by May 2025, having met key milestones like consistent debt repayments and positive equity.
The airline is expanding routes to Europe, Asia, and Australia, leveraging Thailand’s tourism boom and its Star Alliance membership.
The latest A321neo lease comes amid a number of governance reforms for the airline. This notably includes a streamlined 11-member board approved in April 2025.
THAI is poised to resume stock trading and further solidify its position as a modern, passenger-focused carrier.
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