Thai Airways learns 3 lessons, returns to trading 4 August

Thai Airways International Public Company Limited (THAI) is set to resume trading on the Stock Exchange of Thailand (SET) on August 4, marking a major milestone in its recovery after entering a court-supervised business rehabilitation programme on September 14, 2020. 

The Central Bankruptcy Court approved the airline’s rehabilitation plan on 20 October 2022, following a financial collapse with debts totalling 180 billion baht.

Chief Executive Officer Chai Eamsiri reflected on the transformation of the organisation during the rehabilitation period, highlighting three key lessons that have reshaped the airline’s operations and culture:

Lesson 1: Crisis within a crisis

Entering rehabilitation during the Covid-19 pandemic presented a dual challenge. With no cash flow and almost no revenue for a year, Thai Airways was forced to adopt a more conservative and risk-aware business approach. The experience instilled the need for worst-case scenario planning and greater financial discipline.

Lesson 2: Strength must come from within

Though the Cabinet initially approved the rehabilitation plan, it was ultimately the employees who carried the organisation through the crisis. The airline’s transition from a state enterprise to a private company mean/t it no longer operated under direct government direction. During this period, without state financial backing, it was the dedication and resilience of staff that sustained the business. This highlighted the importance of// building internal strength and fostering a sustainable corporate culture.

Lesson 3: Change is possible

Shifting from a state-owned enterprise to a privately-run company gave Thai Airways far greater decision-making flexibility and operational agility. Previously hindered by bureaucratic procedures, the airline now enjoys the speed and freedom of a private-sector structure. While the corporate culture still bears traces of its state enterprise past, the organisation is gradually adapting to its new identity.

“This transformation has made Thai Airways far more agile,” said Chai. “Our staff are adjusting well, and it’s clear that we are becoming a new kind of Thai Airways — one that will not return to its old state-enterprise model.”

The airline is now fully prepared to re-enter the stock market. The THAI stock will resume trading without a fixed price, with valuations determined entirely by market mechanisms (bid-offer) on the day of the listing.

Chai noted that investors can look to the airline’s improved fundamentals. Thai Airways has regained financial stability, with shareholder equity back in positive territory. Additionally, current bookings are outpacing last year’s levels, a positive indicator that could allow the company to resume dividend payments shortly.