Thai Airways International Pcl (THAI.BK) may for all time diminish the quantity of airplane types it sends once the coronavirus pandemic, said a senior government official on Monday.

Thai Airways is landing 69 of its 82 planes following a drop in traveler volume and course cancellations from the expanded border limitations forced by the outbreak, the state-owned carrier said in an announcement before on Monday.

The aircraft's board and management will accompany two plans by one month from now, the first to get the carrier through the coronavirus pandemic and another for business recovery, Deputy Transport Minister Thaworn Senniam, the administration official liable for Thai Airways, said on Monday.

The rehabilitation plan must be done fast because by October, if COVID subsides, we will need to deliver services to travelers and tourists, Thaworn said, alluding to the respiratory disease brought about by the coronavirus.

He included that deals and leasebacks of planes and different sorts of capital infusions were being considered.

We have to reduce aircraft types to as much as possible to reduce cost ... we can take out old aircraft, replace them with new ones through leasing or other procurement methods, he said including the plans ought to be finished by next month.

Thai Airways was already facing financial trouble, reporting losses since 2017. Losses in 2019 widened to 12.2 billion baht ($385 million) from losses of 11.6 billion baht a year earlier.

Thai Airways' losses in 2019 broadened to 12.2 billion baht ($385 million) from losses of 11.6 billion baht a year sooner.

The coronavirus pandemic and the subsequent travel limitations restricting the travel industry in Thailand have exacerbated the airline s decline.

The administration a week ago restricted entry to outsiders and announced a state of emergency to cure the illness.

Thailand on Monday stated 136 new coronavirus cases, raising the absolute number of contaminations in the nation to 1,524. Nine individuals have already passed away.

The flag carrier had dropped about the entirety of its international routes after its leader resigned in the midst of the outbreak.

The airline said a year ago it was auditing long postponed plans to buy 38 planes for its expansion plan.

Other Thai aircrafts are likewise suffering in the midst of the pandemic.

Regional carrier Bangkok Airways Pcl (BA.BK) said it was suspending 20 international routes and 10 domestic routes until October, with staff taking compensation cuts of 10% to 50%.

Budget carrier Thai AirAsia is resting its fleet in the wake of suspending its international and domestic flights, its biggest investor, Asia Aviation Pcl (AAV) (AAV.BK) said.

https://www.umarkets.com/en/news/thai-airways-may-reduce-plane-types-permanently-after-landing-jets

Topics