Lifeline arranged to keep THAI afloat
Dec 1, 2014, 6:11 am
#61
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I really don't think this is good news.
Borrowing money is never a solution where a business has systemic problems. In such a case, increasing borrowing just kicks the can down the road a bit. In the absence of business change, borrowing defers the inevitable and the collapse, when it comes, is all the more spectacular.
TG has been on a downward spiral since Piyasavit Amarand (not sure about the spelling) was pushed out. Things were going so well for a while...
Borrowing money is never a solution where a business has systemic problems. In such a case, increasing borrowing just kicks the can down the road a bit. In the absence of business change, borrowing defers the inevitable and the collapse, when it comes, is all the more spectacular.
TG has been on a downward spiral since Piyasavit Amarand (not sure about the spelling) was pushed out. Things were going so well for a while...
Three months ago TG said that it was in desperate need of cash. Two weeks later, TG said that it had no need for borrowing till march 2015 as its business was improving. Now, it seems that TG needs 7 billion (well over USD100 million) in a rush.
The text of the article is truly funny, especially:
"The national carrier would normally issue a formal document ensuring the bank that the amount will be paid back within one year or earlier if THAI is able to find other source of funds to support its liquidity."
Dec 1, 2014, 6:53 pm
#62
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Perhaps my use of the term "good news" was misinterpreted?
Obviously THAI, like nearly all of the State Enterprises here, is in deep, deep, deep trouble. And for many/most of the same reasons.
But at least the cash infusion will keep operations going for a bit longer, and travelers won't be left stranded?
Obviously THAI, like nearly all of the State Enterprises here, is in deep, deep, deep trouble. And for many/most of the same reasons.
But at least the cash infusion will keep operations going for a bit longer, and travelers won't be left stranded?
Dec 5, 2014, 5:00 am
#63
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Perhaps my use of the term "good news" was misinterpreted?
Obviously THAI, like nearly all of the State Enterprises here, is in deep, deep, deep trouble. And for many/most of the same reasons.
But at least the cash infusion will keep operations going for a bit longer, and travelers won't be left stranded?
Obviously THAI, like nearly all of the State Enterprises here, is in deep, deep, deep trouble. And for many/most of the same reasons.
But at least the cash infusion will keep operations going for a bit longer, and travelers won't be left stranded?
But what are needed are drastic restructuring actions and a serious viable business plan and coherent strategy. None of this is likely.
So, TG will muddle down deeper into a hole.
Dec 5, 2014, 7:25 pm
#64
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THAI boss unveils take-off plan
Ticketing tactics key to fixing airline's woes
Published: 5 Dec 2014 at 06.16
Struggling national carrier THAI will promote its online ticketing more aggressively rather than giving a quota to sales agents in one of its first moves to turn its finances around, newly appointed Thai...
http://www.bangkokpost.com/news/gene...-take-off-plan
Ticketing tactics key to fixing airline's woes
Published: 5 Dec 2014 at 06.16
Struggling national carrier THAI will promote its online ticketing more aggressively rather than giving a quota to sales agents in one of its first moves to turn its finances around, newly appointed Thai...
http://www.bangkokpost.com/news/gene...-take-off-plan
Dec 23, 2014, 6:34 pm
#65
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In today's Nation newspaper. More route cuts and selling off aircraft, but no mention of service improvements as part of a solution to their troubles.
Interesting that they will be selling off ten aircraft in 2015. With a total of 89 active aircraft, that is a substantial cut in fleet capacity.
Thai Airways International plans to cut ineffective routes and sell more than 10 aircraft next year in a bid to turn around years of operational losses.
These moves are part of company's draft five-year master restructuring plan to deal with its financial problems and shield itself from global economic instability.
The THAI board of directors approved these plans, proposed by new president Charamporn Jotikasthira, at the company's monthly meeting on Monday.
http://www.nationmultimedia.com/busi...-30250501.html
Interesting that they will be selling off ten aircraft in 2015. With a total of 89 active aircraft, that is a substantial cut in fleet capacity.
Thai Airways International plans to cut ineffective routes and sell more than 10 aircraft next year in a bid to turn around years of operational losses.
These moves are part of company's draft five-year master restructuring plan to deal with its financial problems and shield itself from global economic instability.
The THAI board of directors approved these plans, proposed by new president Charamporn Jotikasthira, at the company's monthly meeting on Monday.
http://www.nationmultimedia.com/busi...-30250501.html
Dec 23, 2014, 6:49 pm
#66
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But having said that, TG have 33 aircraft in storage, including the A340-500s that they cannot seem to get rid of. They also still have all the old A300s in storage. And then there are six 747-400s in storage. Maybe he is talking about selling off stored aircraft? Sounds sensible to me, particularly when they are having to borrow money to stay afloat.
http://www.airfleets.net/flottecie/Thai%20Airways.htm
http://www.airfleets.net/flottecie/Thai%20Airways.htm
Dec 24, 2014, 9:06 am
#67
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But having said that, TG have 33 aircraft in storage, including the A340-500s that they cannot seem to get rid of. They also still have all the old A300s in storage. And then there are six 747-400s in storage. Maybe he is talking about selling off stored aircraft? Sounds sensible to me, particularly when they are having to borrow money to stay afloat.
http://www.airfleets.net/flottecie/Thai%20Airways.htm
http://www.airfleets.net/flottecie/Thai%20Airways.htm
Dec 27, 2014, 7:32 pm
#68
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Old aircraft have no or little resale value (including the 744 with old engines).
That could mean that TG will sell some of its recent 777, 787, A380 or A330 and cut international service accordingly.
BTW, all Tha airlines have problems. Thai AirAsia just announce a drastic drop in profits. Yield factors have gone down, due to increased capacity (5 new planes). they plan to reduce international flights and increase domestic ones. The problem mentioned is the military coup and martial law.
That could mean that TG will sell some of its recent 777, 787, A380 or A330 and cut international service accordingly.
BTW, all Tha airlines have problems. Thai AirAsia just announce a drastic drop in profits. Yield factors have gone down, due to increased capacity (5 new planes). they plan to reduce international flights and increase domestic ones. The problem mentioned is the military coup and martial law.
Jan 24, 2015, 5:27 am
#69
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Rumors, which have been circulating since the first of this month ( 1 Jan. 2015), are heating up again over this weekend with some media reports of the need for a significant restructuring effort being required sooner rather than later.
I think most people expect the ruling military junta to continue to provide funding for operations - the loss of national face in the event of a bankruptcy would be HUGE - but THAI may have to make radical changes going forward. Maybe some sort of tie-up with a Chinese carrier is in the cards?
Some rumors point to a significant announcement, maybe as early as Monday, 26 January.
http://www.bangkokpost.com/business/...l-off-property
I think most people expect the ruling military junta to continue to provide funding for operations - the loss of national face in the event of a bankruptcy would be HUGE - but THAI may have to make radical changes going forward. Maybe some sort of tie-up with a Chinese carrier is in the cards?
Some rumors point to a significant announcement, maybe as early as Monday, 26 January.
http://www.bangkokpost.com/business/...l-off-property
Last edited by transpac; Jan 24, 2015 at 5:55 am
Jan 24, 2015, 6:17 am
#70
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"rumours" that are reported in the media:
http://www.bangkokpost.com/business/...l-off-property
http://www.bangkokpost.com/business/...l-off-property
Jan 24, 2015, 4:26 pm
#72
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Jan 24, 2015, 6:04 pm
#73
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Jan 24, 2015, 6:13 pm
#74
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Slightly OT.
I have a client who strictly enforces 'cheapest-of-the-day' policy even in C - for BKK-ICN I wanted to book TG (because of schedule) but had to book OZ as TG fuel surcharge (YQ) was some USD 200 higher (per RT). I am not sure how - with so low fuel prices-m airline can justify so high surcharges... Anyway - 2 RT tickets in C went to OZ...
I have a client who strictly enforces 'cheapest-of-the-day' policy even in C - for BKK-ICN I wanted to book TG (because of schedule) but had to book OZ as TG fuel surcharge (YQ) was some USD 200 higher (per RT). I am not sure how - with so low fuel prices-m airline can justify so high surcharges... Anyway - 2 RT tickets in C went to OZ...
Jan 24, 2015, 7:57 pm
#75
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It seems that, at a minimum, the next iteration of a restructuring program by the new management will likely include some route cuts. But who knows? With a still bloated board, another super-board overseeing them and various/sundry military types running the Kingdom maybe just run the course, add a few amulets and hope for the best?
Recent analysis here: http://centreforaviation.com/analysi...al-2014-206334
Recent analysis here: http://centreforaviation.com/analysi...al-2014-206334
