Thailand

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

Published

Sunday, February 21, 2021 15:47

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

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17 Comments

Toby Andrews

Sunday, February 21, 2021 at 4:20 pm

I recommend anyone who sell Thai Airways an aircraft demands cash on delivery.
No checks. No money transfers.
This airline will not even refund a one way ticket to Germany, that did not fly, so they certainly will not pay for an aircraft if they can swindle their way out of paying.

Reply
- Slugger
  
  Sunday, February 21, 2021 at 5:50 pm
  
  Yes, every airline in the world pays cash for it’s aircraft. Cretin.
  
  Reply
  - Yan
    
    Sunday, February 21, 2021 at 8:08 pm
    
    Except Thai…they only buy on credit…look at Thai households, it is all on credit.
    
    Reply
  - Shane
    
    Sunday, February 21, 2021 at 8:26 pm
    
    It’s “its”. Cretin.
    
    Reply
    - Toby Andrews
      
      Sunday, February 21, 2021 at 11:45 pm
      
      Yes despite all his other ignorance slugger cannot spell as well. A one line idiot.
      
      Reply
- Stefan Svensson
  
  Sunday, February 21, 2021 at 6:43 pm
  
  It’s part of Thai DNA!
  
  Reply
  - corwin
    
    Sunday, February 21, 2021 at 10:56 pm
    
    All aircraft are on credit not only Thai airways
    
    Reply
Me

Sunday, February 21, 2021 at 4:31 pm

If you paid for the ticket by credit card get your bank to chase up the credit card people to ask for a chargeback on the money owed. it will likely be a quicker process than waiting for Thai airways.
I have had two refunds PAID via VISA for flights and currently have another chargeback via Mastercard under dispute with a different bank to the visa card bank.

Reply
Paul

Sunday, February 21, 2021 at 4:42 pm

Heard and read Thai Airways acted through deeply corrupted managements and even tricked from technical staffs unions for many years, hence terrible number staff ratios against the profitable international competition like double the numbers required per planes in activity. Better be sold out before further losses for many years again. At least 40 or 50% of staff could be saved, a new good quality company would be available in Thailand And part debts paid.good luck for Thailand.

Reply
Ian

Sunday, February 21, 2021 at 4:52 pm

Is this the same airline that was bankrupt a week ago another disaster in the making

Reply
Wayno

Sunday, February 21, 2021 at 4:55 pm

“A major factor for the airline’s financial problems was
the……” Greed and dishonesty of the Thai people from the ground up.

Reply
Grumpy John

Sunday, February 21, 2021 at 6:25 pm

Leasing would be better in these uncertain times. 2025 is still a long way away and even if the magic man in heaven whisked away the virus with the snap of his fingers it will take 3 to 4 years to get back to some sort of normality.

A lot of people have to worry about putting food on the table, paying rent or mortgage, car payments, school fees, insurance & rates. Holidays to Thailand….not on the radar!

Reply
Shane

Sunday, February 21, 2021 at 8:32 pm

I believe most airlines lease their aircraft. A simple issue of cash flow. Aircraft are not cheap.

Reply
Jim kelly

Sunday, February 21, 2021 at 9:38 pm

Ha ha ha ha ha ha ha ha ha ha…. I wonder if you can get bored laughing? Errr? No… HA HA HA HA HA!!!!

Reply
EdwardV

Sunday, February 21, 2021 at 11:31 pm

First thing they need to do is find someone who knows how to purchase planes. Buying the A340 toward the end of its life when it was already known to be expensive to operate was stupid. It’s why they only made about 380 A340s vs over 1,600 Boeing triple 7s. To then dump a bunch of money buying A380s? That was even dumber. They need to seriously rethink their business plan and purchase accordingly.

Reply
albert zweistein

Monday, February 22, 2021 at 1:24 am

Lord forgive them, They don’t know what they are talking about.

Reply
Toby Andrews

Monday, February 22, 2021 at 2:29 pm

I read above that Thai Airlines was buying aircraft.
I believed that.
Forgive me if this is not what airlines do. I have never bought an aircraft.
Still it makes sense. Who is going to lease an aircraft to Thai Airways?
They might sell it in south America.

Reply

Caitlin Ashworth

Caitlin Ashworth is a writer from the United States who has lived in Thailand since 2018. She graduated from the University of South Florida St. Petersburg with a bachelor’s degree in journalism and media studies in 2016. She was a reporter for the Daily Hampshire Gazette In Massachusetts. She also interned at the Richmond Times-Dispatch in Virginia and Sarasota Herald-Tribune in Florida.

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