7-9-2023 (BANGKOK) Thai Airways, currently undergoing bankruptcy protected debt restructuring, is reportedly in discussions with Boeing and Airbus regarding a potential order of more than 90 jets, according to industry sources. The airline’s previous indications suggested a need for 30 or more jets, but the latest request for bids opens up the possibility of acquiring up to 95 aircraft. The order would include 15 narrow-body jets and potentially up to 80 wide-body jets, making it one of the largest orders for big jets from Southeast Asia in recent years. Typically, such large orders are spread out over a decade or longer.
Both Boeing and Airbus declined to comment on any commercial discussions with their customers, while Thai Airways stated that it is in the early stages of exploring the market for various studies. The airline emphasized that no decisions have been made regarding long-term strategies or fleet commitments.
Thai Airways’ Chief Executive, Chai Eamsiri, previously announced the airline’s intention to finalize a deal to purchase 30 wide-body jets and an undisclosed number of narrow-body jets by the end of this year.
The Southeast Asian carrier aims to capitalize on the anticipated post-pandemic travel boom by strengthening regional routes. However, concerns have been raised regarding the ability of aircraft manufacturers Airbus and Boeing to meet the surging demand by ramping up production.
As part of its ongoing debt restructuring, Thai Airways initiated a plan to restructure 400 billion baht ($11.17 billion) worth of debt in 2021. The airline’s current fleet consists of 20 Airbus A320 aircraft, and it has secured the lease of a dozen new A321neo jets scheduled for delivery in 2025 and 2026. Additionally, the carrier operates a mixed fleet of approximately 45 larger wide-body jets, including Boeing 787 and Airbus A350, as well as older models such as Boeing 777 and Airbus A330.
In the near term, Thai Airways plans to increase its wide-body fleet from 45 to 56 aircraft by the first quarter of next year through leasing arrangements. These additional planes will be deployed on long-distance intercontinental routes to Australia and Europe, which have been experiencing a strong recovery.
The airline remains committed to its pandemic-driven restructuring plan and aims to relist on the stock market by the first quarter of 2025. After reporting a net profit of 2.2 billion baht ($61.8 million) in the second quarter of this year, Thai Airways is optimistic about its financial turnaround, having faced losses in almost every year from 2012 to 2021.
