Thai Airways has shared their ambitious plans to expand their aircraft fleet by the end of this year. In an interview with Reuters held at their headquarters in Bangkok, Chief Executive Chai Eamsiri revealed that the airline intends to acquire at least 30 new aircraft. This bold move could potentially double the size of their current fleet of narrowbody jets over the next decade.
The airline has prepared to issue a ‘request for proposal’ to industry giants Airbus and Boeing for 30 wide-body aircraft, alongside an undisclosed number of narrow-body aircraft. Despite concerns about whether Airbus and Boeing can meet delivery targets, Thai Airways is eagerly anticipating a post-pandemic travel boom and preparing to strengthen their regional routes.
Emerging from Financial Restructuring
In 2021, Thai Airways began a financial restructuring process under bankruptcy protection due to a debt totaling 400 billion baht ($11.17 billion). Since then, they have managed to secure a dozen new A321neo on lease, scheduled for delivery in 2025 and 2026. Currently, the airline operates with 20 Airbus A320 aircraft.
Chai shared future plans for the airline’s fleet composition. “The long-term narrow-body composition of our fleet should be 30-40 aircraft,” he said. These planes will primarily serve routes in Southeast Asia, India, southern China, and southern Japan. These medium-haul routes are areas Thai Airways is keen to strengthen. “We have to concentrate and focus more on the regional routes, which is our weak point,” admitted Chai.
A Bright Outlook for Long-Distance Travel
Thai Airways’ wide-body fleet is also set to increase from 45 to 56 aircraft by the first quarter of next year. These additional jets, acquired on dry lease contracts (typically not including crew), will be used for long-distance intercontinental routes. Destinations like Australia and Europe have demonstrated strong recovery since the pandemic, and these aircraft will aid in meeting this demand.
“The aircraft will be used on long-distance intercontinental routes to Australia and Europe that have seen a strong recovery since the pandemic. That’s for the short term,” Chai said.
Promising Bookings and Future Goals
Chai provided an optimistic update on the airline’s performance, sharing that their cabin factor was at about 84% in the last quarter. Advance bookings from markets like Europe have been looking “promising”.
As a former Thai Airways Chief Financial Officer who stepped into the role of CEO in November of last year, Chai assured that the airline’s restructuring plan is on track. The goal is to relist Thai Airways on the stock market by the first quarter of 2025. Chai stated, “If we can do it earlier, we will do it. But it depends on the performance this year also.”
Thai Airways’ commitment to expanding their fleet signals the airline’s confidence in the aviation industry’s post-pandemic recovery.
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