Thai Airways International (THAI) Public Company Limited revealed that from September 14, 20, the Central Bankruptcy Court ordered the Company to rehabilitate its business. With the planning team At this time, the planning team is in the process of preparing the rehabilitation plan. Which is expected to be able to submit a business rehabilitation plan to the Official Receiver by early January ’20.
After that, the Receiver will call a meeting of creditors so that the creditors can consider the plan and vote on whether they will agree with the plan or not. Before the official receiver can present a plan with creditors approval to the Central Bankruptcy Court. If the court considers and orders to approve the rehabilitation plan and appoint a plan administrator It is expected that the plan approval process will be completed within the first quarter of the second quarter of ’21. The Company will then begin the rehabilitation as planned.
In addition, the planning team is EY Corporate Advisory Services Co., Ltd., Gen. Chaiyapruek Disayasarin, Mr. Jakkrit Parapankul, Mr. Peeraphan. Satcharath Wipak, Mr. Boontak Wangcharoen, Mr. Piyasawat Amranant and Mr. Chansilp Ternuchakorn
Guidelines for solving problems in the financial status of the company
1. Cost reduction In the third quarter of 2020, the Company still took measures to reduce expenses, mitigate the impact of the COVID-19 situation. Continued intensely from the previous quarter In particular, staff expenses were reduced by still reducing salaries. And continuing high-level executive compensation And ask for cooperation for employees to join the Non-Salary and Compensation Leave Program (Together We Can Project)
In addition, in October 20, two projects “Unite for the Organization” were launched: The Unity Sacrifice Program for Organization Package A (MSP A) and Leave without pay program, both of which will take effect in Q420 to reduce expenses for the company to maintain cash in Sufficient hands to operate the business while there is no cash flow from normal airline business operations And from other sources of funds Along with the delay in investment and procurement Including the reduction of expenses that are not related to the operation. And the danger and criteria prescribed by law
2. Focusing on additional income from businesses that do not involve the transportation of passengers. By penetrating into the market more ground customers, including Tasty Over the Sky Project, Thai Flying Experience & Beyond Project
For guidelines for operational improvement The company has the main guideline for business reorganization in order to return proudly sustainable profits again. By relying on the drive for changes that are important in 3 main areas which are
1. Revenue Excellence by generating income in all aspects, both aviation and non-aviation revenue. It will consist of a network of routes, commercial fleets by adjusting the size of the fleet accordingly. Strengthen the route network that is profitable for the company, including routes with connections to strategic points of flight Or potential new flight routes Streamline commercial processes to increase unit revenue and market share. Improve digital monetization at every stage of the customer journey. Including operations And business units Creating income opportunities other than aviation and new ideas Such as income from the aviation kitchen department Freight transport On-ground service Aircraft maintenance etc.
2. Simpler, leaner and more cost efficient by driving all processes into efficiency through cost management. Increase opportunities to improve costs arising from aviation operations, such as increasing efficiency from fuel consumption, such as aircraft rentals. And engines, efficient purchasing There is a transparent and concise process, aircraft maintenance. For efficiency and effectiveness
3.World class ways of working by adapting to a smaller organization but increasing the skills and capabilities. And work together more efficiently Along with bringing digital technology to help reduce the work process to be quick, easy, concise, with an organizational structure that needs to be improved along with the organizational culture. Increasing the talent of personnel with digital technology
The factors that will affect the success in solving the problems of the company. In the situation of the COVID-19 epidemic Make the journey drop immediately And is expected to exist for a long time The implementation of the rehabilitation plan to achieve its goals requires adequate creditors’ cooperation and support in accordance with the legal requirements. Both in considering the appointment of the plan maker A plan to approve the plan And considering the appointment of a plan administrator
Including the support of the government in conducting business rehabilitation The government has set up a committee to monitor the implementation of the problem. To follow up and advise on relevant actions so that Thai Airways can successfully implement the Company’s rehabilitation plan.