THAI reveals key strategies to build strength amid fierce competition

Thai Airways International Pcl (THAI) has entered the final phase of its rehabilitation plan and is now focused on restructuring its capital according to the approved plan. 

In the first nine months of 2024, THAI and its subsidiaries reported total revenue of 135.81 billion baht, a 17.2% increase compared to the same period in the previous year, which recorded 115.89 billion baht.

The continued positive performance enabled THAI to repay 3.531 billion baht in debt under the rehabilitation plan.

It marks a remarkable turnaround for the airline that faced continuous losses from 2011 to 2021, accumulating negative equity of 70 billion baht, debt of 130 billion baht, and a long list of 13,000 creditors. 

Ultimately, it filed for business rehabilitation with the Central Bankruptcy Court on September 14, 2020, which approved the plan on October 20, 2022.

According to Taviroj Songkumpol, chief strategy officer, and Korakot Chatasingha, chief commercial officer, the airline's success stems from new strategies designed to enhance competitiveness, deliver comprehensive service excellence, and position itself as a high-quality airline that meets passenger needs. This aligns with its mission: "Flying further with the pride of the Thai people".

The four key missions

1. Enhancing customer experience, tailoring services to prioritise customer needs.

2. Expanding revenue opportunities, broadening income streams and maximising potential.

3. Boosting cost efficiency, streamlining fleet and engine management, major cost factors in aviation, overhauling procurement processes to reduce lead times for equipment and materials, 

4. Focusing on sustainable business practices, prioritising environmental and social impact, emphasising integrity and transparency through effective corporate governance.

To enhance competitiveness, Thai Airways is capitalising on Thailand’s globally recognised position as a premier aviation hub, the officials said. The airline is focused on expanding its flight network to maximise this advantage. Beyond drawing European tourists to Thailand, it seeks to position the country as a major transit point for destinations like Australia and other Asia-Pacific regions, they added.

A key element of the airline’s strategy is its transformation into a private enterprise. Recognising employees as its most valuable asset, Thai Airways has committed to workforce development and embedding new organisational values in line with private sector practices. This transformation includes modernising its digital infrastructure, adopting cutting-edge technologies, and striving for full digital integration.

Thai Airways has said it also intends to strengthen its unique selling points, such as direct flight routes. Despite intense competition, particularly in Europe, the airline has successfully established 10 direct flight destinations. These routes serve as distinctive “gateways”, offering seamless connectivity. By partnering with other airlines, Thai Airways further enhances the convenience of transit, solidifying its market position.