THAI Airways Eyes Investment in MRO Centre in Eastern Economic Corridor
THAI Airways is set to invest in an MRO centre in Thailand's Eastern Economic Corridor, awaiting conditions from the EECO. The airline is progressing with a capital restructuring plan, converting debt into equity, aiming for completion by late 2024. Mixed financial results for the first half of 2024 show resilience amid recovery efforts, including strategic route adjustments and acquiring new aircraft.
THAI Airways is considering investing in a Maintenance, Repair, and Overhaul (MRO) centre in Thailand's Eastern Economic Corridor (EEC).
Currently, the airline is in discussions with several potential domestic and international partners but awaits concrete conditions from the Eastern Economic Corridor Office (EECO).
The announcement coincides with the EECO's recent approval documents for a new MRO operator auction near U-Tapao Airport.
THAI CEO Chai Eamsiri stated that owning an MRO facility would boost the airline's competitiveness.
He assured stakeholders that the airline has sufficient cash flow and that current debts would not affect investment plans.
In tandem with this, THAI is progressing with its business rehabilitation plan under Chairman Piyasvasti Amranand, involving a debt-to-equity conversion and share offerings.
A registration statement and draft prospectus will be submitted by September 2024, with the entire restructuring aimed for completion by late 2024.
Despite mixed financial results for the first half of 2024, including a 14% increase in revenue but a decline in net profit to 2.7 billion baht, the airline remains resilient.
Recent steps, like acquiring A320 aircraft from Thai Smile Airways and modifying its strategic marketing, aim to enhance route and network planning.
THAI plans to open a new route to Brussels and increase flight frequencies to Europe, North Asia, and South Asia.
As of June 30, THAI and its subsidiaries operated 77 active aircraft and had a cash flow of 80 billion baht.
Currently, the airline is in discussions with several potential domestic and international partners but awaits concrete conditions from the Eastern Economic Corridor Office (EECO).
The announcement coincides with the EECO's recent approval documents for a new MRO operator auction near U-Tapao Airport.
THAI CEO Chai Eamsiri stated that owning an MRO facility would boost the airline's competitiveness.
He assured stakeholders that the airline has sufficient cash flow and that current debts would not affect investment plans.
In tandem with this, THAI is progressing with its business rehabilitation plan under Chairman Piyasvasti Amranand, involving a debt-to-equity conversion and share offerings.
A registration statement and draft prospectus will be submitted by September 2024, with the entire restructuring aimed for completion by late 2024.
Despite mixed financial results for the first half of 2024, including a 14% increase in revenue but a decline in net profit to 2.7 billion baht, the airline remains resilient.
Recent steps, like acquiring A320 aircraft from Thai Smile Airways and modifying its strategic marketing, aim to enhance route and network planning.
THAI plans to open a new route to Brussels and increase flight frequencies to Europe, North Asia, and South Asia.
As of June 30, THAI and its subsidiaries operated 77 active aircraft and had a cash flow of 80 billion baht.
