Thai Airways CEO: Rebuilding Confidence was Key to Profitable Turnaround
Thai Airways' turnaround shows that rebuilding trust, not just balance sheets, is key to recovery. As the airline exits restructuring, the real test will be sustaining momentum in an increasingly competitive Asian hub landscape.
The chief executive of Thai Airways has spoken candidly about the importance of rebuilding trust. Speaking at the Skift Asia Forum in Bangkok on Thursday, Chai Eamsiri, said gaining stakeholder confidence was the foundation of the company's recent transformation.
'The most important part was to get the confidence of our stakeholders, especially at the beginning. We needed to earn confidence from our partners because at that time, it was very difficult,' he said.
Eamsiri described the pandemic period as 'survival mode,' adding: ' Airlines are a cash-burning industry. If you don't have revenue your cash will gone quickly.'
In 2021, the Thai flag carrier started restructuring debt worth 400 billion baht ($12 billion) as part of a major shoring up of the business.
Eamsiri, who previously served as chief financial officer, before stepping up to CEO in February 2023, offered insight into the scale of the turnaround: 'No one could imagine that Thai Airways can come back as it is today. At that time, four years, five years ago, nobody thought that Thai Airways would come back this strong.'
Eamsiri also highlighted the importance of being a financially credible business: 'Once we were halfway [through the plan], I went back to our partners and our stakeholders [and said] that we did what we promised on day one; this is what we've delivered.'
End of the Rehabilitation Period
The Thai Airways CEO confirmed to Skift that the carrier's rehabilitation plan is due to conclude in 'about a month.' The milestone marks a radical reversal in fortunes for the company, which is now one of the world's most profitable major airlines.
The restructuring hasn't been without difficult decisions. Eamsiri and his team oversaw huge cuts to the Thai Airways workforce, with total headcount slashed from around 30,000 to just 15,000.
But there are also promising signs of growth. Thai Airways has large orders with both Airbus and Boeing for new-generation jets. These will be used to replace older models, but also expand the network.
Asked about the prospect of Bangkok becoming a stopover hub on par with regional or Middle Eastern rivals, Eamsiri said a collaborative effort was essential: 'Thai Airways cannot do it by ourselves. We need the airport to work closely with Thai Airways. Bangkok as a hub is not only a mission for Thai Airways, it's a mission for the country.'
A True Network Carrier
The CEO said a strong network airline was his goal, and emphasized the importance of feeder routes as a competitive advantage. 'Lately we've changed our strategy to change from point-to-point sales into more on the network airline. We're not ignoring point-to-point but if network sales bring incremental revenue on top of the point-to-point sales, then it's proven that our strategy is the right decision.'
Eamsiri cautioned that frequencies as well as routes are a key consideration when developing the Thai Airways network: 'The domestic and the regional routes are an attractive selling point for us. We operate long-haul, intercontinental flights from Europe or Australia into Bangkok, and to make the domestic and regional routes interesting for these passengers, we need to put more frequency into these routes. Otherwise, we cannot give the variety of products, with scheduling also part of the product. If we only have one or two flights a day, passengers will not choose us, so we need to build our network to serve each other.'
With the rehabilitation plan nearly complete and a modernized fleet on the horizon, Thai Airways is positioning itself not just as a survivor of the pandemic era, but as financially stable, strategic player.
This interview was lightly edited for clarity.
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