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[TÍTULO ATUALIZADO] Thai Airways entra em processo de concordata


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By Cirium19 May 2020

The Thai government has given its approval for Thai Airways International to reorganise under the supervision of the local bankruptcy court.

“The Thai Cabinet approved the reform plan for [Thai Airways] which will be implemented through the business reorganisation chapter under the auspices of the Central Bankruptcy Court of Thailand and the Bankruptcy Act,” the state-owned carrier says.

“In the meantime, Thai is able to operate flights and run its business as usual.”

The carrier clarifies that it “will not be dissolved or go into liquidation or [be] declared bankrupt”.

“On the contrary, the business reorganisation chapter will enable Thai to reach its reform plan’s objectives even more effectively step by step as required by the law, which provides equitable protection to all relevant stakeholders while Thai will be able to conduct its normal business operations including passenger and cargo transportation.”

The airline says this is an important step as it seeks to become a stronger and more sustainable entity.

Insolvency procedures in Thailand allow a company to either file for bankruptcy or avoid doing so by applying to reorganise its business.

Under that process, the court can grant the company protection against creditor claims but needs to be convinced that there will be a successful outcome to do so. 

https://www.flightglobal.com/thai-airways-approved-to-restructure-in-bankruptcy-court/138436.article

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Thai Airways saved from the brink by government
7 hours ago

Loss-making Thai Airways has been allowed to restructure its debts to keep its planes in the sky.

The struggling airline had previously asked for a government bail-out via a 58.1bn baht ($1.81bn, £1.48bn) loan.

Instead, Thai officials told the airline to come up with a restructuring plan to avoid going bankrupt.

The global airline industry is facing a severe financial crisis due to coronavirus travel restrictions with a growing list of casualties.

Thai Airways was under financial pressure even before the coronavirus outbreak caused passenger numbers to plummet. In 2019, it reported losses of 12bn baht.

But it has strongly denied rumours that it was looking to file for bankruptcy. In a statement on its website, Thai Airways said: "it has no intention to file for bankruptcy, responding to rumours appeared in the news and online".

The airline is 51% owned by the Thai government and overseen by its State Enterprise Policy Committee (SEPC).

After a cabinet meeting on Tuesday, Thailand's Prime Minister, Prayuth Chan-ocha, said: "The government has reviewed all dimensions... we have decided to petition for restructuring and not let Thai Airways go bankrupt. The airline will continue to operate."

The previous rescue package put forward by the airline involved a government guaranteed loan backed by the finance ministry.

Thai Airways has around 80 planes and employs 22,000 people. It said this week it would not resume international flights until at least 30 June.

The International Air Transport Association has said air travel is not expected to return to normal until 2023, putting further pressure on airlines globally.

Avianca, Colombia's privately owned national flag carrier, filed for Chapter 11 bankruptcy in the US earlier this month, while Virgin Australia, the second-biggest airline in Australia, entered administration in April after it failed to secure a government bailout. 

https://www.bbc.com/news/business-52718464

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Thai Airways denies bankruptcy plan despite creditors' nod

22.05.2020 - 11:30 UTC

 

Thai Airways International (TG, Bangkok Suvarnabhumi) has denied it is planning to file for bankruptcy protection even though creditors have reportedly approved the move.

The Thai flag carrier said in a statement that it has "no intention to file for bankruptcy". It also denied that its Board of Directors agreed to any such filing adding that it was instead hoping to follow a restructuring plan adopted in mid-April and presented to the State Enterprise Policy Office on April 29. The plan has yet to be submitted to and approved by the government before it can be made public and implemented.

In the meantime, given the size of debts and uncertainty about the future, Thai's creditors are said to be supportive of the airline filing for bankruptcy protection. The Nation English-language newspaper said the Thai Ministry of Finance, which currently holds a 51% stake in the carrier, is ready to dispose of a 3% stake. However, Thai Airways would lose its state enterprise status meaning its restructuring would no longer depend on the approval of the government.

However, the government earlier denied any plans to privatise the airline.

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Thailand govt lowers equity ownership in Thai Airways to 47.86%
May 25, 2020

Thailand‘s Government lowered its equity ownership in Thai Airways to 47.86% from 51.03% as part of the carrier’s restructuring process (Reuters, 23-May-2020). Thailand’s Ministry of Finance sold 69.2 million shares to a mutual fund run by Krung Thai Bank for an undisclosed price.

https://blueswandaily.com/thailand-govt-lowers-equity-ownership-in-thai-airways-to-47-86/

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In 1997, Thai Airways became the only Asian airline to be among the five founding members of the Star Alliance, now the world's largest airline alliance. After more than a decade of poor financial performance and the impact of the coronavirus, Thai faces a major overhaul under Bankruptcy Court supervision.   © AP
COMPANY IN FOCUS

Thai Airways: pandemic delivers final blow to mismanaged carrier

Stripped of state protection, national icon faces drastic recovery overhaul

MASAYUKI YUDA, Nikkei staff writer
 

BANGKOK -- These days, Bangkok's normally bustling main international airport feels like a museum dedicated to displaying Boeing and Airbus jets owned by Thai Airways International, with the national flag carrier's fleet largely grounded as the novel coronavirus pandemic paralyzes global air travel.

The mixed collection of Boeing 747-400s, Airbus A330s, Boeing 787-9s and Airbus A380s sitting silently on the tarmac or inside hangars at Suvarnabhumi Airport might appeal to aviation enthusiasts and photographers looking for a rare and dramatic shot. But the inertness of the fleet highlights not just the impact of COVID-19 but the airline's decades of financial inefficiency.

"Thai Airways troubles started in the 1990s when it decided to diversify and buy every type of plane that was being manufactured," said an airline industry insider in Thailand. Different models have different specs using different engines, the person told the Nikkei Asian Review, forcing the airline to train an army of engineers to keep the General Electric and Rolls-Royce engines flightworthy, inflating maintenance costs.

The inefficiency manifest at Suvarnabhumi is just one part of a history of mismanagement, corruption, and political interference that has now plunged the airline into overhaul proceedings. The kingdom's Bankruptcy Court on Wednesday accepted a petition from Thai, as the airline is commonly known, for rehabilitation under the court's supervision, with the first hearing scheduled for August.

A source in the Prime Minister's Office said that the coronavirus is what exposed Thai's underlying corporate culture and financial weaknesses. But for aviation analysts, the airline becoming the first national flag carrier in the world to go through legal rehabilitation was no surprise. The pandemic was simply the last straw that ultimately broke its wings.

CreditRiskMonitor, a New York-based credit research company, on March 11 named Thai along with Virgin Australia Holdings, Sweden-based SAS and Malaysia's AirAsia X as airlines with a risk of bankruptcy 10 to 50 times greater than the average public company. Of those, Virgin Australia entered voluntary administration -- equivalent to Chapter 11 bankruptcy in the U.S. -- ahead of Thai.

Ahead of the filing, the Ministry of Finance on May 22 trimmed its shareholding to 47.86 from 51.03%, selling 3.17% to state-run Vayupak Fund 1. Thai's second vice chairman and acting president Chakkrit Parapuntakul admitted that the airline had ceased to be a state enterprise under relevant laws, which have long hindered a thorough restructuring.

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The slow collapse occurred in layers. Management was inconsistent as presidents and board members frequently came and went for political reasons. And employees were not blameless, taking advantage of executive mismanagement to feather their own nests.

It wasn't that the need for reform went unrecognized, just that efforts by past presidents, when they came, were inevitably cut short. Piyasvasti Amranand took the helm in October 2009 after serving as energy minister. Within Thai, he is still spoken of as the only true reformer, launching cost-cutting measures such as salary cuts for senior executives.

Despite helping the airline fill its deficit in 2009, directors suddenly voted him out in June 2012 in what was seen as a politically motivated ballot. His spouse was a senior member of the Democrat Party and the kingdom was under the premiership of Yingluck Shinawatra from then-rival-Pheu Thai Party controlled by her brother, the exiled former Prime Minister Thaksin Shinawatra.

Piyasvasti expressed exasperation at receiving no explanation for the apparent boardroom coup. "The performance of the company during my term has improved in every aspect," he said at the time.

Charamporn Jotikasthira, former president and chief executive officer of the Stock Exchange of Thailand, took the helm in 2014. But Charamporn's reforms faced a major revolt from the airline's union and made little progress. He ended up retiring in February 2017. Sumeth Damrongchaitham took over the position in September 2018, but resigned March this year in the middle of his tenure.

Unprofessional boards also did not help. After a military coup in 2014, a trend emerged when Air Chief Marshal Prajin Chatong, who later became a deputy prime minister in the junta, was appointed chairman. Five civilian members were purged and replaced with five Royal Thai Air Force officers.

The appointments marked an end to the management culture of only appointing technocrats to board management positions that Thaksin had introduced around 2001 and Yingluck abided by. Three air chief marshals are currently on the board and have no experience in running listed companies or restructuring loss-making airlines.

Unions are guardians of workers' rights, but employees at Thai are seen as overprotected. Salary increases are based on length of employment. "At times, senior captains were getting paid more than the president of the company," a former board member told Nikkei Asian Review.

At one time, the airline had 300 engineers reporting 8 hours overtime for all 365 days of the year, "which does not make sense," the former board member said. And, he added, when changes were introduced to reduce such compensation anomalies, staff were able to get around them through special allowances.

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Thus, inconsistent management and overpaid, unmotivated workers spoiled the flag carrier's profitability. Thai reported a net loss of 12 billion baht ($376 million) in 2019, the third straight annual loss. Total shareholder equity was at 11 billion baht as of December 31, down 84.5% from the end of 2010, the last time it raised capital.

The coronavirus impact was so massive that the carrier could not report its quarterly financial results ending March on time. The Stock Exchange of Thailand granted a special extension until Aug. 14. But reports already say the net loss for the current fiscal year may balloon to as big as 60 billion baht, five times larger than last year.

The virus clearly shattered any business reboot hopes that Thai had. Its plan to open an aircraft maintenance yard in eastern Thailand fell into jeopardy after its partner Airbus missed a March deadline to submit a contract proposal. The two had agreed in 2017 to build a maintenance, repair, and overhaul facility -- a plan that may justify its long experience in maintaining a wide range of planes -- at U-Tapao International Airport in Rayong Province. But pandemic-induced uncertainty in the aviation industry prompted Airbus to back out from the 11-billion-baht project, said a senior official at Thai.

Compared with other Asian full-service peers, Thai was the worst-positioned by average passenger yield. Full-service airlines all experienced fierce competition with low-cost carriers, but Thai was hit harder compared to Southeast Asian rivals like Garuda Indonesia and Singapore Airlines. Thai's average passenger yield for 2019 was only half of Japan Airlines'.

Under rehabilitation unqualified board members will automatically be replaced. That leaves cushy employee perks as the last hurdle to overcome for a thorough restructuring and is where the 3% share sale will have a big effect.

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Stripping Thai of its state enterprise status will terminate worker privileges, including the right to form a union, which was allowed under related state enterprise acts. Charamporn, when working on his reforms, complained of the limitations Thai faced as a state enterprise. "You cannot easily fire people," he said in an interview with Nikkei at the time.

Naturally, the union's reaction to rehabilitation is fierce. "Thai Airways is the national carrier and it shall remain only [that]," said Nares Puengyam, union president. The union said that creditors lent money based on Thai's status as a state enterprise, and the 3% divestment at a time of restructuring would make them lose faith.

But the 3% share sale to the state-run fund was a carefully calculated act. A majority of shares are still under the strong influence of the government, even as the state enterprise status was successfully stripped away.

Nares took a hard stance, vowing the union will "oppose to the end" the process. But when confronted with the government's decisiveness in completely overhauling the carrier, the union relented, saying it will not stand in the way.

"The Bankruptcy Court will appoint professionals to supervise its rehabilitation and restructuring in a professional way," said Prime Minister Prayuth Chan-ocha, who chaired the State Enterprise Policy Committee in deciding to send the airline to court-supervised rehabilitation.

Thai on Monday said that it has replaced four board members. Among the new ones is none other than Piyasvasti, the former president whose reform efforts were once blocked. Pailin Chuchottaworn, former deputy transport minister until December 2019, resigned the day after he was appointed, as Thailand's anti-corruption authority bans a cabinet minister from sitting on the board of a private company for two years after leaving the office.

Thai proposed on Wednesday that the current chairman, acting president and three new board members, along with consultant EY Corporate Advisory Services, be appointed as rehabilitation planners.

Earlier, a number of names had come up, including former president Charamporn as well as state enterprise executives such as Tevin Wongwanich, president and chief executive of state-owned resources producer PTT Exploration and Production, and Chartchai Payuhanaveechai, president of Government Savings Bank.

Nikkei Asian Review has learned that an invitation to join the planning team will also be sent to Chumpol NaLamlieng, currently an independent director of industrial conglomerate Siam Cement. After serving as the president of Siam Cement from 1993 to 2005, Chumpol joined British Airways as a director until 2009. These names still may contribute to Thai's rehabilitation.

https%3A%2F%2Fs3-ap-northeast-1.amazonawIdle Thai Airways jets are parked on the tarmac at Bangkok's Suvarnabhumi Airport. The company became the first national flag carrier in the world to face court-sponsored bankruptcy rehabilitation amid the coronavirus pandemic. (Photo by Akira Kodaka) 

The planners' overhaul proposal must be endorsed by a majority of creditors for it to be put into action by the executors. "The rehabilitation process can potentially be protracted and acrimonious," said Joseph Tisuthiwongse, a partner at Bangkok-based law company Chandler MHM. Layers of legal steps and the varied interests of concerned parties make it "unclear how Thai will emerge from the process," he added.

But the national flag carrier must emerge clean from rehabilitation to remain a trusted brand for Thais. Such a wrenching overhaul is not uncommon in the aviation industry, especially after a major economic or security shock. Japan Airlines filed for rehabilitation in 2010 and after scrapping over 60 money-losing routes and laying off one-third of its workforce, it returned to profitability.

Since 2000, United Airlines, Delta Air Lines, Northwest Airlines, US Airways, and American Airlines have all been overhauled after filing Chapter 11 bankruptcies. U.S. banks and investors were forced to pay the price through debt write-offs, while the airlines experienced massive restructuring. Thai's struggle may be signaling another global trend of aviation overhauls induced by the coronavirus pandemic.

Downsizing fleets and scrapping unprofitable routes should be on the Thai rehabilitation agenda. Reports said the plan will ask as much as 50% of its more than 20,000 employees to leave with a 10 months of salary as severance.

The plan is expected to involve requests for debt forgiveness to creditors. Local credit rating agency Tris Rating has downgraded Thai's company rating and its senior unsecured debentures to default on Wednesday. Investors -- including the Ministry of Finance -- will likely be required pay their share of the cost to ensure fairness through capital reduction or equity dilution.

"If Thai really reforms, the gravy train for many is over," said the source from the Prime Minister's Office.

Additional reporting by Marwaan Macan-Markar and Apornrath Phoonphongphiphat in Bangkok.

 
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Comunicado da Thai

Em um comunicado, a Thai Airways informou que em reuniões extraordinárias do Conselho de Administração, realizadas em 20 de maio de 2020 e 25 de maio de 2020, decidiu aprovar a companhia, como devedora, para solicitar reabilitação no Central Bankruptcy Court.

Em 26 de maio de 2020, a companhia entrou com pedido de reabilitação no Central Bankruptcy Court e, em 27 de maio de 2020, o tribunal emitiu uma ordem para aceitar a petição de reabilitação da companhia para consideração. Em função disso, o Central Bankruptcy Court estabeleceu a data da audiência sobre a petição de reabilitação da companhia para 17 de agosto de 2020.

Veja abaixo um resumo do plano de reabilitação da Thai:

  • A Companhia, como devedora, entrou com um pedido de reabilitação no Central Bankruptcy Court.
  • A Companhia propôs ao Central Bankruptcy Court nomear a EY Corporate Advisory Services Limited e a ACM Chaiyapruk Didyasarin, o Sr. Chakkrit Parapuntakul, o Sr. Pirapan Salirathavibhaga, o Sr. Boontuck Wungcharoen e o Sr. Piyasvasti Amranand, como os planejadores. Nesse sentido, uma vez que o Central Bankruptcy Court forneça a ordem de reabilitação comercial e indique o planejador, ele terá, portanto, autoridade e dever no gerenciamento dos ativos da empresa.
  • Esse processo de reabilitação permitirá que a companhia alcance os objetivos do seu plano de recuperação de maneira ainda mais efetiva, passo a passo, conforme apoiado pelas leis, que fornecem proteção eqüitativa às partes relevantes. Além disso, durante o processo de reabilitação, a companhia ainda poderá conduzir sua operação comercial normalmente, seja prestando serviço de transporte de passageiros a destinos globais ou serviço de transporte postal, os quais serão realizados junto com a reabilitação da companhia, a fim de aprimorar a eficiência operacional e melhorar ainda mais a qualidade dos produtos e serviços.

A Thai comunicou ainda que seguirá informando sobre o progresso da reabilitação da empresa.

 

https://passageirodeprimeira.com/thai-airways-entra-com-pedido-de-recuperacao-judicial/?fbclid=IwAR0iXpO1bNUBTlwnOZxfl3jV_cKdW4Aro5aPMsgUXpOwtn_pxnR8ufDgDEU

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A Thai Airways por mais de 40 anos nunca teve prejuízo anual, mas esta façanha era conseguida com o mercado fechado, ausência de LCC e antes do surgimento das ME3. Quando se tem o primeiro prejuízo a reação é que vai melhorar, mas só vai piorando ou então vê que é uma empresa estatal lucrativa e vira cabideiro.

A mesma história com a Garuda, Malaysia, Asiana e Korean. A Singapore foi mais pragmática e vem se adaptando.

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  • 3 weeks later...

Apesar de falar da Thai Airways, tem uma abordagem mais ampla de como a retirada de técnicos, conflitos de interesse atrapalham as estatais. Colocarei apenas trechos importantes ou relacionados a TG, o restante pode ser acessado no link: https://asia.nikkei.com/Opinion/Thai-Airways-bankruptcy-shows-urgent-need-for-state-sector-reform

Thai Airways bankruptcy shows urgent need for state-sector reform
Thailand's inefficient state-owned enterprises are dominant but troubled

Panarat Anamwathana
June 18, 2020 20:00 JST

Panarat Anamwathana is a Ph.D. candidate at the University of Oxford whose research focuses on Thai economic history, economic development and political economy.

Once the pride of Thailand, flying passengers all over the world, now the planes of Thai Airways International are grounded and the company has gone bankrupt as of the end of May.

This bankruptcy, and the airline's loss of state enterprise status, have raised questions over the performance and future of other Thai state-owned enterprises, or SOEs, which include some of its largest corporations. At a time of increased public spending and uncertainty because of COVID-19, the Thai government should consider this a turning point and start the process of reform.

[...]

But their productivity is mixed. In 2019, 56 Thai SOEs -- then still including Thai Airways -- generated a profit of 291 billion baht, meaning that the proceeds of lucrative SOEs more than compensate for the losses incurred by less successful ones. Their return on assets in the past few years, however, was a meager 2%. For comparison, the return on assets for Chinese SOEs is between 4% and 5%.

It seems that as long as the well-performing state enterprises generate enough revenues, the Prayut Chan-ocha government can continue to sweep calls for change under the rug. SOE reforms are, however, long overdue. In fact, many of the problems that plagued Thai Airways before its bankruptcy are present in other SOEs and, if left unattended, could cause further problems.

[...]

One of the most cited reasons for Thai Airways' troubles is poor management. Since Prayut took office, first in a 2014 military coup as head of the army and then in 2019 in a general election, his government has removed technocrats from the Thai Airways boardroom and replaced them with military officers who have little relevant experience or expertise. Even now, though Thai Airways is no longer a state enterprise, its chairman is Air Chief Marshal Chaiyapruk Didyasarin.

At the same time, members of the armed forces have been appointed chairmen and board members of almost every SOE in Thailand. Unqualified managers have proved unable to revitalize Thai Airways and are unlikely to do so for other struggling SOEs.

Another troubling sign is that some of the most profitable Thai SOEs have monopolies in their sectors. In 2019, the state enterprise that generated the highest revenue, 41 billion baht, was the Government Lottery Office. The national lottery is one of only two forms of legal gambling, in addition to horse racing. Similarly, the Tobacco Authority of Thailand is a highly profitable SOE and the sole manufacturer of tobacco products in the country.

Lessons from Thai Airways suggest that these monopolistic enterprises would struggle in a competitive market. One of the reasons Thai Airways survived for so long despite its inefficiencies was because it enjoyed state protection until two decades ago but could not respond to increased competition.

[...]

The Thai government should therefore reform these SOEs to keep them from suffering the same fate as Thai Airways. Keeping generals out of the boardroom and appointing qualified technocrats to important management positions is an important first step. To ensure that these technocrats can do their jobs, the government should remove conflicts of interests of influential figures from SOEs.

 

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  • A345_Leadership changed the title to [TÍTULO ATUALIZADO] Thai Airways entra em processo de concordata
  • 1 month later...

Thai Airways' record $900m loss wipes out shareholder equity

National flag carrier's shares suspended after auditor questions airline's future

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Liabilities at Thai Airways ballooned to 332.1 billion baht as of June, up nearly 37% from the end of 2019. (Photo by Akira Kodaka)
MASAYUKI YUDA, Nikkei staff writer
 

BANGKOK -- Thai Airways International has revealed the damage to its financial status inflicted by the coronavirus pandemic, which gave it a final push to give up the idea of self-resuscitation.

The cash-strapped national flag carrier's net loss for the first half of this year was 28 billion baht ($900 million), according to financial results released on Friday. The loss ballooned 4.4-fold compared to the same period the previous year, marking the largest retreat for the first half of a fiscal year since comparable data became available in 2007.

Its total revenue decreased by 56.9% to 40 billion baht, reflecting the coronavirus's strong impact, which has come despite successful social-distancing measures. In pre-coronavirus times, the first half, especially the first quarter, of each year provided Thai Airways with most of its profit, as Thailand attracts many Chinese tourists during the Lunar New Year.

 

Deloitte Touche Tohmatsu Jaiyos, the airline's auditor, decided not to express an opinion on the interim financial results due to uncertainty regarding Thai Airways' ability to continue as a going concern. In response to the auditor's decision, The Stock Exchange of Thailand on Friday morning suspended trading in Thai Airways' shares.

The auditor pointed out that the airline has had losses "from operations since year 2013 which resulted in capital deficiency and lack of financial liquidity." The pandemic "may have a significant impact on the flight plan, the financial position, the ability to generate revenues, and current and future cash flows of the group," it added.

The results were posted ahead of the first Bankruptcy Court hearing, scheduled on Monday, to discuss the rehabilitation of the troubled carrier. Thai Airways filed corporate reorganization proceedings at the court in May, as COVID-19 travel restrictions eroded its cash management.

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The announcement of results on Friday was the first time the financial damage of COVID-19 to the national flag carrier had seen the light of the day. Thai Airways was granted an extension on submitting its March results by the Stock Exchange of Thailand until Friday. The March results were posted along with the June results.

It recorded a net loss of 5.3 billion baht for the quarter ending June, following another net loss of 22.6 billion baht in the first quarter.

The result announcements posed the airline an urgent need for a swift recovery to maintain its listed company status. Its total shareholders' equity turned negative at minus 18.1 billion baht. At the Stock Exchange of Thailand, shareholders' equity lower than zero leads to consideration of delisting. The airline is given three years to raise itself from negative shareholders' equity, before facing removal from the bourse.

The national flag carrier's total liabilities ballooned to 332.1 billion baht as of June, up 36.7% from the end of 2019.

The petition for rehabilitation accepted by the Central Bankruptcy Court gave Thai Airways an automatic stay on debt repayments. At the hearing on Monday, the court will decide whether to allow Thai Airways to advance in the rehabilitation process and to appoint a committee to draw up an actual restructuring plan.

The restructuring plan is expected to be submitted to creditors and the court for approval next year. Rehabilitation administrators will be able to begin restructuring in May or June 2021, if the process goes smoothly, according to a legal adviser of Thai Airways.

But the outlook for a swift rehabilitation is looking grim. The Tourism Authority of Thailand said revenue from international visitors in 2021, under its base-case scenario, could shrink to 618 billion baht, or about 32% of the 1.9 trillion baht earned in 2019. The revenue falls to 298 billion baht in its worst-case scenario.

Deloitte Touche Tohmatsu Jaiyos also pointed out lingering uncertainties -- that creditors will approve Thai Airways rehabilitation plan, that the plan will be successfully implemented and that the business will continue to operate.

Slimmer earnings opportunities limit Thai Airways' ability to manage a rehabilitation through revenue growth and cost cuts, raising the need for a capital injection. The last time the airline raised capital was in 2010.

Thai Airways' regional peers have all shown net losses in their latest financial results.

Hong Kong-based Cathay Pacific Airways turned to a net loss of HK$9.8 billion ($1.3 billion) in the six months ending June, from a net profit of HK$1.3 billion a year earlier. Garuda Indonesia reported a net loss of $712 million for the first half. Singapore Airlines' net loss was at 1.1 billion Singaporean dollars ($820 million) for the three months ended in June.

In Thailand, budget carrier Nok Airlines in July filed for rehabilitation under court supervision. The carrier on Friday announced its results for the quarter ended March, showing a net loss of 2.1 billion baht. Shareholder equity was at minus 5.1 billion baht as of March. The trading of Nok Airlines' shares has been suspended as well.

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  • 1 month later...

Thai Airways puts all B747s, B777-200s, -300s up for sale

06.11.2020 - 08:16 UTC

Thai Airways International (TG, Bangkok Suvarnabhumi) has put all of its B747-400s, B777-200s, and B777-300s up for sale in a bid to reduce fleet complexity and raise much-needed cash.

According to an announcement, the ten B747-400s, six B777-200s, and six B777-300s will be available for delivery during the second quarter of 2021. All three types were retired by late March 2020, when Thai Airways suspended nearly all operations due to the closure of Thai borders.

The ch-aviation fleets advanced module shows that Thai Airways' B747-400s are 21.6-years-old on average. Since March, three units have been stored at Utapao and the remainder at Bangkok Suvarnabhumi. Thai Airways also owns another, eleventh B747-400, but it has been stored at Mojave since November 2014.

In turn, the carrier's fleet of B777-200s is 23.9 years old on average. They remain parked at Suvarnabhumi, except for one stored at Bangkok Don Mueang. The -300s are 21.1 years old and are all at Suvarnabhumi airport. The airline is not selling its six B777-200(ER)s or fourteen AC!B77Ws (of which it owns six and leases the remaining eight).

Thai Airways has also reiterated its attempts to sell six A340-600s and three A340-500s, which it has been trying - unsuccessfully - to offload for several years. The carrier also put up for sale its last two narrowbodies, B737-400s, which were retired in 2017 and 2018. The third B737-400 owned by Thai Airways, HS-TDD (msn 26611), which has been parked at Utapao airport since 2017, was not listed for sale.

Finally, the list of aircraft for sale also includes a 1993 vintage A300-600R.

Besides the B777-200(ER)s and -300(ER)s, Thai Airways will also retain fifteen A330-300s, twelve A350-900s, six A380-800s, six B787-8s, and two B787-9s. As such, its active widebody fleet will decrease by around 25% compared to pre-COVID times.

In other news, the airline is hoping to reduce its bloated workforce by around 10% after some 1,900 staff signed up for voluntary layoffs, to be implemented in December 2020. Nikkei Asia reported that a further 2,700 workers applied for half-yearly paid leaves, wherein they will receive only 20% of their regular salaries.

Facing the ongoing near-total closure of Thailand's borders, Thai Airways operates a skeleton network mostly for repatriation and cargo purposes.

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  • 1 month later...

Thai Airways has listed several aircraft for sale online, inviting participation in the bidding process. The planes are all being sold “as is, where is,” and include the following:

  • 10 Boeing 747-400s, delivered between 1993 and 2003
  • Six Boeing 777-200s, delivered between 1996 and 1998
  • Six Boeing 777-300s, delivered between 1998 and 2000
  • Six Airbus A340-600s, delivered between 2005 and 2008
  • Three Airbus A340-500s, delivered between 2005 and 2007
  • Two Airbus A380-800s, delivered in 2013
  • Two Boeing 737-400s, delivered between 1992 and 1993
  • One Airbus A300-600, delivered in 1993

 

the airline also has a further three leased 777-300ERs on order, which could be delivered soon.

https://onemileatatime.com/thai-airways-selling-boeing-747-airbus-a380-fleet/

 

 

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  • 2 months later...

 

On 15/02/2021 at 03:36, FCRO said:

Acredito que é o 777-200ER, visto que o 747 foi desativado ano passado.

Mas ainda é insuficiente. Os A330, apesar de antigos, são mais baratos e abrange toda a rede da Thai na Ásia. Enquanto isso manterá uma frota de A350, B777-300ER e B787, deveria se concentrar em apenas um modelo, como o A350 ou o B787, visto que a demanda vai demorar a recuperar.

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THAI airways to sell assets to raise more funding
February 24, 2021 
 

THAI airways is selling its Laksi training center building, in the Bangkhen district of Bangkok, its Nok-Air shares, its Bangkok Aviation Fuel Services (BAFS) shares and Boeing 737- 400 engines, after the bankruptcy court gave the go-ahead to do so.

THAI airways has been hit hard by limited travel due to the COVID-19 pandemic, which comes as they were entered bankruptcy protection and sit on the verge of liquidation.

The acting director of THAI airways, Chansin Treenuchagron, said that the funding derived from this sales of assets is for the business operations and investment in projects which can create further income, or to be used as permitted by law.

Potential buyers can contact THAI airways for the Terms of Reference, or access more details on its website’s “Property for Sale” page.

https://www.thaipbsworld.com/thai-airways-to-sell-assets-to-raise-more-funding/

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Thai Airways to halve workforce to become profitable by 2025

Flag carrier announces rehabilitation plan that focuses on downsizing of operations

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Thai Airways was one of the world's first major airlines to seek the protection of a bankruptcy court due to COVID-19 travel restrictions.   © AP
MASAYUKI YUDA, Nikkei staff writer
 

BANGKOK -- Thai Airways International announced on Tuesday that it would downsize its operations significantly by cutting 50% of its workforce and its aircraft in operation from 102 to 86 as part of a rehabilitation plan that it submitted to the bankruptcy court earlier in the day.

The rehab process will see the airline's number of full-time employees reduced from 27,944 as it stood in 2019 to between 13,000 and 15,000. This effort alone will bring the proportion of total flight revenues that are taken up by crew costs down from 23% to 13%, the carrier said.

The financially battered-airline will aim to be in a stable state of profitability by 2025 through the restructuring measures and assuming that air travel recovers to normal levels by 2024.

 

The airline first asked the court to supervise a rehabilitation plan back in May 2020, becoming one of the world's first major airlines to seek legal relief due to massive financial damage brought on by COVID-19 travel restrictions.

The motion was accepted in September, but the airline has since slipped further. According to its 2020 financial results, released on Thursday, the legacy carrier recorded its worst-ever net loss, 141 billion baht ($4.6 billion), as the COVID-19 crisis decimated its revenues, bringing its shareholder equity to minus 128.6 billion baht as of December, down from 11.7 billion baht a year earlier.

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Trading of Thai Airways' shares was halted on Thursday morning due to the airline's negative shareholder equity. "The Stock Exchange of Thailand is considering whether the company is subject to possible delisting because of negative equity and will determine this issue within seven business days or [by] March 8, 2021," the stock exchange said in a notice to investors.

Most of Asia's airlines have also suffered hardships from the travel restrictions, but Thai Airways was already in a precarious financial position as its profitability had eroded over the years. In the past decade, Thai Airways earned a net profit only twice, in 2012 and 2016.

If the plan is approved by creditors, the national flag carrier will have at least five years to implement it. Under the rules, the execution of the plan can be extended for a year no more than twice. This could drag out the process to seven years.

Thai Airways will need to show it can improve its organizational profitability to win endorsement from holders of at least 50% of its debt.

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Other Asian carriers to fall on hard times pre-COVID include Japan Airlines, which went through a thorough rehabilitation after a bankruptcy filing in 2010. Thai Airways now faces similar challenges with its aging aircraft and highly paid staff.

Its capital deficit as of December was $4.2 billion, about half of the roughly $9 billion that Japan Airlines was buried under when it went bankrupt.

Eleven years ago, commercial banks were asked to write off 87.5% of their Japan Airlines receivables. Japan's oldest airline -- it was established in 1951 -- was forced to cease flying roughly 40% of its international routes and 30% of its domestic routes. It reduced its fleet by 30%, laid off 16,000 employees and took other cost-cutting measures.

Japan Airlines' plan might offer perspective for Thai Airways' creditors, especially listed ones, as they decide if they can accept the rehabilitation plan and sell their shareholders on it.

To show current management's commitment to restructuring the organization, Thai Airways has been releasing its reform plan in bits. On Feb. 19, it announced the elimination of more than 30% of its executive positions.

In addition, it has shed around 10% of its workforce, or 2,202 employees, through an immediate early retirement program that management proposed last year.

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Thai Airways International acting President Chansin Treenuchagron speaks during a news conference on March 2. (Photo by Masayuki Yuda)

In September, an investigative panel commissioned by the Ministry of Transport found that corruption among management and workers led to the company's woes. "The main cause of this chronic issue is the procurement of 10 aircraft," said Deputy Transport Minister Thaworn Senneam, who was party to the panel. Thai Airways "has been making losses [on these aircraft] since their inaugural Bangkok to New York flight in July 2005 up until their decommissioning in 2013, and they remain a burden for maintenance costs even today."

The panel found evidence that bribes of at least 2.6 billion baht were paid to politicians, officials and Thai Airways' executives in connection to the purchase of the 10 jetliners, according to a report published by the panel.

In addition, price discrepancies of as much as 589 million baht in operating leases on eight Boeing planes were uncovered. The panel believes the gap explains some $7.2 billion in bribes that Rolls-Royce pushed through middlemen to officials and airline executives for the purchase of engine parts and the payment of a flat rate for repair and maintenance services.

The panel also pointed out that some workers' rights were overprotected and their paychecks were not monitored properly. It found some employees reporting unrealistically long overtime hours. Frequent managerial reshuffles in line with political swings and the re-employment of air force officers regardless of their business experience are also widely seen as key reasons for the carrier's financial crisis.

https://asia.nikkei.com/Business/Transportation/Thai-Airways-to-halve-workforce-to-become-profitable-by-2025

 

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