MIAMI – Thai Airways (TG) Executive Vice President of Finance, Mr. Chai Esmairi, announces that the loss suffered for the 2020 exercise amounts to US$4.05bn (BHT141.1bl).
According to the Stock exchange of Thailand, this is the highest loss ever encountered by a Thai company.
The main reason behind this negative result is the worldwide impact of the Covid-19 pandemic on international travel.
Thai Airways and its subsidiaries saw their total traffic, measured by Available Seat Kilometer (ASK), drop by 73.7% while passenger movements, measured by Revenue Passenger kilometer (RPK), fell by 78.5%.
Part of the loss was a one-time payment of US$3.04bn (BHT92bl) covering expenses for an employee’s separation plan, impairment losses on aircraft, right-of-use assets, and aircraft spare parts as reported by the Bangkok Post.
As stated by the TG press release, TG is under orders from the Central Bankruptcy Court – September 2020 – to rehabilitate its business.
Thai Airways’ Restructuring Plan
In October 2020 the State Receiver appointed a planning committee to establish a reorganization plan to be submitted to the creditors and subsequent consideration by the Bankruptcy Court.
According to Nikkei Asia of February 19, TG foresees a reduction of over 30% of its executive positions as part of the restructuring plan.
As reported by Aerotime.Aero, the carrier as also listed 10 B747 aircraft for sale as an exploratory move, or market survey, to eventually find potential buyers. The sale would only take place once the restructuring plan has won approval both internally and from the Bankruptcy Court.
As a message of hope, Thai Airways, cited by The Strait Times, commented that “vaccines will be a significant factor in the aviation industry because it affects entry restriction policy of Thailand and other countries around the world and would increase the traveling confident of tourists, however, air travel around the world is expected to return to normal in 2024.”
Featured image: Alberto-Cucini/Airways