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SATURDAY, January 28, 2023
nationthailand
Thai Airways expects return to stock market by 2025 as revised rehab approved

Thai Airways expects return to stock market by 2025 as revised rehab approved

FRIDAY, October 21, 2022

Ailing Thai Airways International (THAI) has expressed confidence in completing rehabilitation within two years and returning to the stock market by 2025, after its new rehab plan was approved.

THAI’s CEO Suvadhana Sibunruang confirmed on Thursday that the Central Bankruptcy Court had approved the national carrier’s revised plan for financial restructuring.

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He said the airline would now hire a financial adviser to implement the rehab plan as soon as possible to return THAI to sustainable profitability. He expects the plan to be implemented from the beginning of next year.

Under the plan, THAI will launch a 25-billion-baht rights issue while securing 12.5 billion baht in credit to ensure liquidity for its 2023 budget. It will also refund purchases of all unused tickets by January 31, 2024.
The airline’s current cash flow is reported to be around 20 billion baht.

Suvadhana said THAI expects to resume stock market trading in 2025 after returning to continuous profit. Its profitability since filing its revised rehab plan with the Central Bankruptcy Court in July would likely continue as passenger numbers grow and the airline cuts costs and boosts revenue, he added.

The airline originally filed for bankruptcy protection in late 2019 after reporting accumulated debt of 245 billion baht. In May 2020, the Cabinet gave the rehabilitation plan the green light. The revised plan was issued after THAI halved its workforce from over 29,000 to 14,000, reduced its fleet to 58 aircraft and forecast better-than-expected performance with cabin loads at 80 per cent or higher this year.

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