Cash-strapped Thai Airways plans to buy 20 to 30 aircraft in 2025

UPDATE: The acting president for Thai Airways says the company does not plan to buy more airplanes in 2025 and if flight demand goes up, the company will consider renting first. A source told Nation Thailand that the airline plans to buy more planes when the aviation industry recovers, but acting president Chansin Treenuchagron says that is just a “rumour.” 

Read the update HERE.

Original story… 

Cash-strapped Thai Airways International plans to buy 20 to even 30 aircraft by 2025, when the airline industry is expected to recover from the Covid-19 crisis. Thai Airways is currently coming up with a rehabilitation plan to recover from its roughly 300 billion baht debt and recently put 35 of its passenger planes up for sale. The 30 new airplanes could cost the company up to 100 billion baht.

Thai Airways will need to submit its plans for the purchase of new aircraft along with its business rehabilitation plan to the Central Bankruptcy Court on March 2. The new aircraft purchases are intended to strengthen the airline’s fleet and replace the sold and decommissioned planes. A source told Nation Thailand that the airline industry is expected to recover by 2025.

A major factor for the airline’s financial problems was the decision back in 2003 and 2004 to buy 10 Airbus A340-500 and A340-600 jets. Due to higher costs for maintenance and fuel, the A340 flights led to significant losses. All but 1 of them have been decommissioned and stored at the U-Tapao airport.

Last November, Thai Airways put 34 used passenger planes on the market in order to survive the financial crisis. Aircraft up for sale include Boeing 747 and Airbus A380 double decker jets.

SOURCE: Nation Thailand