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Straits Times
2 days ago
- Business
- Straits Times
Thai Airways exits debt restructuring plan with Court approval
BANGKOK – Thai Airways International won court approval to exit a debt restructuring program, paving the way for resumption of trading in its stocks after a four-year gap. The Central Bankruptcy Court in Bangkok on June 16 granted the national carrier's plea to emerge from the court-supervised debt rehabilitation. The airline successfully completed the restructuring as it managed to increase capital as specified under the plan, restructure business its without any delay, and generate profit before tax, the court said in a statement. The exit will now allow the company to carry out normal business operations five years after it fell into pandemic-triggered financial distress with more than 400 billion baht of debt. Trading of the company's shares may also resume in late July or early August following the court's decision, Thai Airways has said. 'It's now the duty of the new board to ensure sustainable growth of Thai Airways as the court-appointed debt rehabilitation team members have laid the groundwork for the company's business expansion,' Piyasvasti Amranand, court-appointed debt administrator, told reporters. The airline is currently benefiting from a post-pandemic travel boom, which has boosted its earnings and cash flow. Its improved financials have allowed it to order a new fleet of Boeing and Airbus jets to support its expanding operations. Thai Airways saw its net income jump fourfold in the first quarter of this year as the number of passengers it served rose more than 11 per cent from a year earlier. The airline sees strong bookings in the second quarter, led by rising demand for its flights to Europe, Australia and India, CEO Chai Eamsiri said in May. The airline appointed a new board of directors in April, including two senior officials from the Finance Ministry, to prepare for the debt program exit. The ministry's permanent secretary Lavaron Sangsnit is among the 11-member board. As part of the rescue plan, the carrier's creditors agreed to convert about 53 billion baht of debt into shares. It also sold about 23 billion baht in new shares to existing shareholders to boost its capital. Thai Airways' shareholder equity returned to a surplus after completing the debt-to-equity conversion and rights offering. It had a negative shareholder equity of about 27 billion baht after years of losses. 'We have a lot of financial strength in Thai Airways to continue our expansion and success in the competitive air travel industry,' Mr Chai said in a statement. 'Thai Air's main mission is to sustain its long-term growth and push for Thailand as the region's aviation hub.' BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
2 days ago
- Business
- Business Times
Thai Airways exits debt restructuring plan with court approval
[BANGKOK] Thai Airways International won court approval to exit a debt restructuring programme, paving the way for resumption of trading in its stocks after a four-year gap. The Central Bankruptcy Court in Bangkok on Monday (Jun 16) granted the national carrier's plea to emerge from the court-supervised debt rehabilitation. The airline successfully completed the restructuring as it managed to increase capital as specified under the plan, restructure business its without any delay, and generate profit before tax, the court said. The exit will now allow the company to carry out normal business operations five years after it fell into pandemic-triggered financial distress with more than 400 billion baht (S$16 billion) of debt. Trading of the company's shares may also resume in late July or early August following the court's decision, Thai Airways has said. 'It's now the duty of the new board to ensure sustainable growth of Thai Airways as the court-appointed debt rehabilitation team members have laid the groundwork for the company's business expansion,' Piyasvasti Amranand, court-appointed debt administrator, told reporters. The airline is currently benefiting from a post-pandemic travel boom, which has boosted its earnings and cash flow. Its improved financials have allowed it to order a new fleet of Boeing and Airbus jets to support its expanding operations. Thai Airways saw its net income jump four-fold in the first quarter of this year as the number of passengers it served rose more than 11 per cent from a year earlier. The airline sees strong bookings in the second quarter, led by rising demand for its flights to Europe, Australia and India, chief executive officer Chai Eamsiri said in May. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up The airline appointed a new board of directors in April, including two senior officials from the Finance Ministry, to prepare for the debt programme exit. The ministry's permanent secretary Lavaron Sangsnit is among the 11-member board. As part of the rescue plan, the carrier's creditors agreed to convert about 53 billion baht of debt into shares. It also sold about 23 billion baht in new shares to existing shareholders to boost its capital. Thai Airways' shareholder equity returned to a surplus after completing the debt-to-equity conversion and rights offering. It had a negative shareholder equity of about 27 billion baht after years of losses. 'We have a lot of financial strength in Thai Airways to continue our expansion and success in the competitive air travel industry,' Chai said on Monday. 'Thai Air's main mission is to sustain its long-term growth and push for Thailand as the region's aviation hub.' BLOOMBERG
The Star
06-06-2025
- Business
- The Star
Thai Airways shuts down Thai Smile after 12 years of losses
BANGKOK: Thai Airways International (THAI) has officially dissolved its subsidiary, Thai Smile Airways, marking the end of the budget airline after more than a decade of continuous losses totalling over 20.9 billion baht and a negative shareholder equity of approximately 9.7 billion baht (US$297 million). According to a report from Thai Airways International Public Company Limited, the airline notified the Stock Exchange of Thailand (SET) on June 5, 2025, that it had completed the legal process to dissolve Thai Smile Airways Co, Ltd., in which it held a 99.99% stake. The decision followed the resolution passed at the 14th Executive Plan Administrator Meeting on May 8, 2025, which approved the proceeding with the legal dissolution of Thai Smile. The registration of the dissolution was finalised with the Department of Business Development (DBD) under the Ministry of Commerce on June 5. Thai Airways confirmed that the closure of the subsidiary will have no impact on its ongoing operations and that the legal liquidation process will continue accordingly. Thai Smile was established on Oct 17, 2013, with cabinet approval granted on Sept 24, 2013, during the tenure of Piyasvasti Amranand as Thai Airways' President. The airline launched with registered capital of 1.8 billion baht, fully owned by Thai Airways. The first Thai Smile flight took place on April 10, 2014, from Suvarnabhumi Airport across 10 domestic routes under airline code WE, and the final flight, WE268 from Hat Yai to Bangkok, departed at 8:45pm on Dec 31, 2023. Financial records show that Thai Smile reported losses every year over its 12 years of operation, making it one of Thai Airways' most costly ventures. As of its final financial statement: > Accumulated losses exceeded 20.929 billion baht >Shareholders' equity was negative by 9.676 billion baht The long string of losses ultimately led to the decision to wind down operations — a hard-earned lesson for Thai Airways as it continues its financial restructuring. - The Nation/ANN
