Thai Airways rehab chief says no return to state enterprise

Piyasvasti Amranand emphasised that a state enterprise model "cannot respond to the needs of the aviation business in the modern digital economy".

“The company has to be managed under laws and regulations,” he added, stressing the importance of maintaining the airline's independence from political interference.

THAI lost its status as a state enterprise after the Finance Ministry was ordered to reduce its shareholding by at least 50% as THAI applied for business rehabilitation at the Central Bankruptcy Court in May 2020.  

Over the past four years of rehab, THAI has issued new shares, converted debt to equity, and halved its workforce from 30,000 to 15,000.

THAI is due to resume trading on the stock market in 2025 after emerging from rehab.

Piyasvasti also outlined the company's strategy to attract new investors – targeting those with expertise in the aviation sector.

"The opening of share sales to specific investors is a way to bring new expertise into Thai Airways. We don't want to see THAI return to its old ways," he stated.

"Thai Airways has started negotiating for partners to buy shares in a group that will be offered to specific investors, namely foreign capital in the airline business,” said Piyasvasti, a former energy minister who was president of Thai Airways from 2009 to 2012.

The size of the deal, which is expected soon, would depend on how many shares were left over from debt conversion, he added.

The rehabilitation plan features a debt-to-equity conversion process, with various creditor groups having the option to convert up to 24.5% of their debt into equity at 2.5452 baht per share. Additional shares will be offered to existing shareholders, employees, and specific investors, with the total number of new shares not exceeding 31,500 million.

The plan aims to raise 80 billion baht in capital for the airline, Piyasvasti said.  

THAI is due to submit its securities offering report and draft prospectus to the Stock Exchange of Thailand by 30 September. The airline expects to be relisted on the Stock Exchange of Thailand by the second quarter of 2025.

Piyasvasti also confirmed that THAI’s performance is back in positive territory, with record earnings of approximately 20 billion baht last year.

In the second quarter of this year, the national carrier reported total revenue of 43.9 billion baht, up 17.7% up on the same period last year. This year it aims to increase to the workforce to 17,000 to support the operation of 79 aircraft, expanding to 100 aircraft in the future.

Piyasvasti warned, however, that THAI’s new status as a privately owned company must be safeguarded against possible political interference.

"We must watch this matter carefully because we do not want THAI to return to the same track," he cautioned. "The important issue is about people. To manage an organisation, people must be able to work. Because if the management is undermined through lobbying and interference, which is what happened in the past, it will return to the old Thai Airways."