Thai Airways prepares for board shake-up as rehab nears end

 

Thai Airways International (THAI) is in the final stages of its rehabilitation plan and is preparing to exit bankruptcy proceedings.  

 

The airline is poised to appoint a new board of directors following a recent share sale, with a resumption of trading on the Stock Exchange of Thailand expected in the second quarter.

 

Chansin Treenuchagron, board member and rehabilitation plan administrator, confirmed that THAI has met the criteria for exiting rehab.  

 

These milestones include full debt repayment, capital restructuring resulting in positive equity of between 30 and 40 billion baht, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of at least 20 billion baht annually.

 

The final step is the appointment of a new board.

 

Shareholders have nominated 11 to 15 candidates, whose qualifications and experience will be assessed by the management team on February 25.  

 

The chosen candidates will then be presented to shareholders for approval at the annual general meeting on April 18. 

 

Following shareholder approval, the airline will formally notify the Central Bankruptcy Court and appoint the board members to positions such as chairman, vice chairman, and independent director.

 

"The previous board structure consisted of 15 members," Chansin noted. "We will be looking at a more streamlined structure going forward, as a smaller board allows for greater flexibility. Board members will need expertise in aviation, finance, business, and emerging technologies to ensure Thai Airways' continued success."

 

 

 

Chansin said that while the management team will assess the candidates, the final decision rests with the shareholders. They will have the power to approve or reject the proposed board at the April meeting.

 

THAI's business performance has significantly improved.

 

In 2024, the airline reported a profit of 15.195 billion baht, with continued growth predicted.  

 

The capital restructuring has not only restored positive equity but also provided 90 billion baht in cash reserves.

 

Debt has been reduced from 150 billion baht prior to rehabilitation to approximately 80 billion baht.

 

However, THAI faces ongoing challenges, including staff shortages, rising labour costs, increased competition, and potential economic downturns.

 

"Once we exit rehabilitation and resume trading on the Stock Exchange of Thailand later this year, we will operate as a normal private company," Chansin said. "Our priority for 2025 and beyond is sustainable growth, becoming a source of national pride, and increasing our market share in the Asia-Pacific region."

 

Govt nominates board members

Sources say the government, the largest shareholder with a 38% stake (48% when including other government agencies), has nominated four individuals for the new board.

 

These nominees are understood to have primarily financial backgrounds, prompting questions about the balance of expertise on the board and how it will contribute to the airline’s broader development.

 

Other major shareholders – including Bangkok Bank (8.5%), the Electricity Generating Authority of Thailand Cooperative (5.4%), and other creditors who converted debt to equity (collectively holding 52%) – will also have representation on the board.
 

 

Existing board members may remain

The shareholders’ meeting will also address the future of three existing board members – Chansin, Air Marshal Amnat Jeeramanimai, and Piyasawat Amranand, the airline’s court-appointed administrator – whose terms have not yet expired. 

 

A decision will be made on whether their positions will be automatically extended. The future of CEO Chai Eamsiri, whose contract was recently extended by the management team, will also be considered.