- Thai Airways orders 45 wide-body jets from Boeing and GE Aerospace to replace ageing aircraft and expand its fleet, with deliveries starting in 2027.
- This investment aligns with the airline’s rehabilitation plan following its bankruptcy-protected restructuring in 2021, aiming for annual revenue of at least 180 billion baht by 2025.
- Thai Airways remains optimistic about emerging from restructuring due to growing demand, strong route performance, and streamlined operations.
Thai Airways International (THAI.BK) has announced a significant fleet expansion plan, confirming a firm order with Boeing and GE Aerospace for 45 wide-body jets. This move underscores its strategic commitment to rejuvenating the fleet and meeting rising demand as international travel rebounds after the pandemic.
The deliveries are set to begin in 2027, enabling the national carrier to strengthen its operations and align with its long-term growth strategy.
Replacing ageing aircraft
The newly ordered jets will replace older leased aircraft reaching the end of their operational lives. This acquisition will modernise the fleet while allowing Thai Airways the flexibility to respond to market shifts, as it includes options for additional aircraft. The fleet will expand to 96 jets, providing the airline with the capacity needed to achieve annual revenue of at least 180 billion baht ($4.98 billion) by 2025, as CEO Chai Eamsiri stated.
“Without aircraft, how can you reach that level? It’s simple. We need capacity; we need aircraft,” Eamsiri emphasised in an interview, highlighting the importance of this investment to meet future passenger and cargo demands. This new fleet will also help fulfil Thai Airways’ rehabilitation plan following its bankruptcy-protected restructuring in 2021.
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Restructuring and financial recovery
Since the onset of the COVID-19 pandemic, which grounded its fleet and halted global travel, Thai Airways has been navigating a restructuring process with debts of 400 billion baht ($11.08 billion). To recover, the airline sold off assets, streamlined its workforce, and adopted a leaner operating model. Eamsiri remains optimistic about exiting restructuring in 2024, citing the growing demand for air travel, increased ticket prices, and strong route performance.
European, Japanese, and Australian routes have outperformed expectations, with cabin occupancy exceeding forecasts. The new aircraft are expected to capitalise further on this momentum.
Thai Airways business model and operations
Thai Airways International Public Co., Ltd operates as a national enterprise under the Ministry of Transport. It is a public company listed on the Stock Exchange of Thailand, with the Ministry of Finance as the majority shareholder. The airline transports passengers, goods, and parcels between major Thai cities and global destinations, using Suvarnabhumi Airport as its main hub.
Thai Airways derives 95% of its revenue from passenger and cargo transportation, with the remaining 5% coming from these supporting businesses.
Challenges and innovations in the aviation industry
Thai Airways, like others in the global aviation industry, faces challenges such as fluctuating fuel prices, evolving regulations, and intense competition. The COVID-19 pandemic intensified these issues, forcing airlines to adapt quickly to changing safety protocols, border closures, and evolving passenger preferences.
To overcome these challenges, Thai Airways is committed to international operational standards and sustainable growth while prioritising customer satisfaction. The airline’s committee and management structure, divided between airline business operations and supporting units, ensure strategic oversight and flexibility to meet market changes.
Path Forward
This substantial investment in wide-body jets reflects Thai Airways’ confidence in the future of air travel and its determination to overcome challenges. The new aircraft will allow the airline to deliver comprehensive airfreight services with Thai hospitality while meeting high safety, convenience, and efficiency standards. With a renewed focus on fleet expansion, Thai Airways is set to leverage its global partnerships and operational flexibility to offer seamless travel for its passengers, reinforcing its status as “The First Choice Carrier with Touches of THAI.”
About Thai Airways International
Thai Airways International Public Co., Ltd, a national enterprise under the Ministry of Transport, is a publicly listed company on the Stock Exchange of Thailand since 1991. The Ministry of Finance holds a dominant share of over 50%.
Operating from its primary hub at Suvarnabhumi Airport, the airline connects Thailand’s major cities to key global destinations through scheduled and charter flights. Thai Airways specialises in transporting passengers, goods, parcels, and postal items across its network, serving international travel needs with a focus on Thai hospitality. Its global partnerships further extend the reach and connectivity of its air services.
