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Solution to Thai Airways woes ‘in 2 months’

Solution to Thai Airways woes ‘in 2 months’

THAILAND: The Finance and Transport ministries have pledged to work together to find a solution within two months to turn ailing Thai Airways International (THAI) around, according to finance permanent secretary Prasong Poontaneat.

CoronavirusCOVID-19tourismtransport
By Bangkok Post

Thursday 26 March 2020, 11:33AM


The Civil Aviation Authority of Thailand has okayed airlines’ decision to scale back flights or stop flying due to the COVID-19 outbreak. Photo: Somchai Poomlard

The Civil Aviation Authority of Thailand has okayed airlines’ decision to scale back flights or stop flying due to the COVID-19 outbreak. Photo: Somchai Poomlard

Mr Prasong said the ministries are well aware of the extent of the problems faced by the national carrier stemming from its financial crisis and which have been aggravated by the COVID-19 outbreak.

He said the Finance Ministry was ready to help rescue THAI and see to its recovery as soon as possible.

The permanent secretary said the ministries would discuss rescue measures and finalise the issue within two months.

To ease the liquidity crunch, the practical solution would be to either recapitalise the airline or procure loans to sustain its operations.

However, how the COVID-19 situation unfolds will have a bearing on how measures will be tailored, Mr Prasong said.

“We need to do our homework carefully before we decide on measures [to assist THAI],” the finance permanent secretary said.

“It’s crucial to assess developments in the COVID-19 outbreak and how long it will last.”

This week, THAI announced it was to suspend all international flights and close its overseas offices in light of the intensifying global coronavirus crisis. (See story here).

Chakkrit Parapuntakul, the national carrier’s acting president, said THAI was not able to fly to many countries because of border closures, which has caused passenger traffic to dry up.

The airline, already in financial dire straits, decided the best option was to curtail most flights to stop losses.

THAI has now cancelled all flights in the Asia-Pacific region (except Cambodia) starting from today (Mar 26), and will suspend all Europe routes from April 1.

The cancellations will last until May 30, according to information released by THAI offices in Singapore and Vietnam.

This decision made on yesterday’s flights to and from countries such as Singapore and Vietnam means it is the carrier’s last flights there until May 30.

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robknight | 27 March 2020 - 13:29:03

 Synergy in this case means not having too many aircraft types that means it is difficult to substitute aircaft as pilots are not trained on all types substitue an Airbus 319 for an Airbus 321 No problem as the crew are licensed on all those aircraft types Highly unlikely an a380 Pilot would be dual licensed on a 747 for example owing to license type rating validity 30 yrs in aviation 4 me BTW FYI

Kurt | 27 March 2020 - 09:02:08

CAAT has okayed? Hahaha. What other option CAAT had? About Thai Airways, a 20 year problem is unlikely to be fixed in 2 months time. Funny solution: Stop flying, stop losses.

malczx7r | 27 March 2020 - 08:47:32

As soon as I hear the word "synergy" reminds me when we used to play management bs bingo, for buzzwords like "touch base, keep me in the loop, all phrases and buzzwords used by people wanting to sound intelligent without a clue what they are talking about!

DeKaaskopp | 26 March 2020 - 16:06:58

@Aachen  Wouldn't take that for granted.

Aachen | 26 March 2020 - 15:51:11

This moment Thai Airways confirmed Frankfurt for April and said (Hotline) they will continue flights.

robknight | 26 March 2020 - 12:50:21

The airline was always going to be in trouble because quite frankly they fly too many uneconomic routes and have far too big a fleet of differing aircraft types IMHO , not enough synergy and pilots on extortionate pay

 

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