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Thai Airways restructuring approved

Melburnian1

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This is part of a syndicated article from 'The Australian' of 14 September 2020:

'A Thai court has approved the restructuring of Thai Airways, which is billions of dollars in debt and struggling to survive the coronavirus tourism crash.

The global aviation sector was plunged into crisis by the pandemic as countries severely restricted travel, forcing airlines to ground vast numbers of planes and seek government help as they haemorrhaged cash.

The kingdom, once a majority shareholder in Thai, reduced its stake in May and went to the insolvency court to resolve the airline’s debt -- which totalled 332.2 billion baht ($US10.6 billion) by the end of June, according to local media.

“The problem that caused debtor’s financial situation is not from its business but from the rapid change in aviation, particularly the impact from COVID-19,” Bangkok’s Central Bankruptcy Court said.

It approved Thai’s request for a rehabilitation plan, which would see its debt and company organisation restructured...'
 

drron

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Though it isn't going to be straight forward and the Company says it may take 7 years to finalise.

"Industry strains have been mounting in Asia, with Singapore Airlines Ltd eliminating about 20% of its workforce. Thai Airways creditors are likely faced with a protracted process: the company is estimating that the rehabilitation could take as long as seven years. "

Basically precipitated by the auditors not signing off on the accounts.

And Thai officials are (pretending to) investigate the scandals and corruption.
 

Melburnian1

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Though it isn't going to be straight forward and the Company says it may take 7 years to finalise...

Seven years? The Biblical analogy of '70 times 7' that my parish priest referred to on Sunday comes to mind...

TG used to be a really big carrier into/ex Oz about 25 years ago but its market share has declined over the years.

I'm guessing being massively overstaffed for what's become the case with coronavirus, and nepotism rather than promotion on merit would be two of its many problems.
 

MEL_Traveller

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Seven years? The Biblical analogy of '70 times 7' that my parish priest referred to on Sunday comes to mind...

TG used to be a really big carrier into/ex Oz about 25 years ago but its market share has declined over the years.

I'm guessing being massively overstaffed for what's become the case with coronavirus, and nepotism rather than promotion on merit would be two of its many problems.

It's hard to say why they were losing so much money, pre covid. On paper they tick all the right boxes... fly to a major tourism hotspot, new planes, a solid product in all classes, perfectly positioned for connecting and stopover traffic, usually had pretty high load factors - at least on all the flights i was on (6-8 a year). Fares were not particularly cheap.
 

Happy Trails

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Lack of fleet commonality wouldn't have helped.
I'm struggling to think of an aircraft model that they haven't purchased, at least a few of, in the last 20 or so years.
 
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OZDUCK

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If you wanted to lose a Billion dollars has Thai Airways got a bargain for you!

34 aircraft for sale - in "As is " condition. You can top up your B747-400 fleet with 10 on offer. Plus various marks of the A340 and even an A300. I can't imagine these aircraft will be in any sort of flyable condition and would be pretty much valueless except as 'parts donors'. Even then the cost of scrapping and getting the parts to where they are wanted may well be excessive in this current climate.

 

MEL_Traveller

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If you wanted to lose a Billion dollars has Thai Airways got a bargain for you!

34 aircraft for sale - in "As is " condition. You can top up your B747-400 fleet with 10 on offer. Plus various marks of the A340 and even an A300. I can't imagine these aircraft will be in any sort of flyable condition and would be pretty much valueless except as 'parts donors'. Even then the cost of scrapping and getting the parts to where they are wanted may well be excessive in this current climate.


Gosh... dun leave them with much left! The 747s should in theory be ok to fly. The A340s haven't been in regular service for quite some time!

They're keeping their 777-300ERs, and -200ERs, 787s, 330s, 350s, and oddly, their A380s. (so around 61 medium to long haulers)
 

OZDUCK

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Gosh... dun leave them with much left! The 747s should in theory be ok to fly. The A340s haven't been in regular service for quite some time!

They're keeping their 777-300ERs, and -200ERs, 787s, 330s, 350s, and oddly, their A380s.

Yes I was wondering about there A380's. As far as I am aware they have been a big problem for them for years. It almost seems as though the purchase, possibly lease, contract was so cleverly written that it costs more to be rid of them than just paying the ongoing fees.
 

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