Thai Airways International (THAI) has revealed plans to spin off several business units into subsidiaries as part of its long-term growth strategy. The initiative will allow the company to enhance operations in business units with high potential, such as aircraft maintenance and catering.
THAI President Chai Eamsiri emphasized that these units could operate profitably, boasting an estimated 20% profit margin compared to the airline’s overall margin of 5–6%. The spin-off strategy will allow each business unit to manage gains and losses independently, helping to identify those with promising futures.
The new subsidiaries would also compete for contracts with Thai Airways and other organizations. Mr. Chai noted that the employees in these units are likely to support the move, as they could benefit from higher rewards than those currently offered by the airline.
This approach aligns with global airline industry practices and will lighten the management’s workload, enabling better focus on Thai Airways’ core operations. The move also coincides with THAI’s involvement in the U-Tapao Maintenance, Repair, and Overhaul (MRO) center project in the Eastern Economic Corridor (EEC). This project aims to boost the aviation sector in Thailand and position U-Tapao International Airport as the country’s third major airport.
While there has been speculation about THAI returning to state enterprise status, Mr. Chai dismissed the idea, citing the company’s successful rehabilitation plan over the past four years as evidence that it is more agile and better suited to remain a public corporation.
In 2023, THAI served 13.8 million passengers and reported net income of 165.49 billion baht, a 57% increase from the previous year. By 2029, the airline plans to expand its fleet from 103 to 143 aircraft, with additional routes to Europe, including Brussels, Milan, and Oslo.
THAI aims to complete its restructuring process by the end of this year, with plans to relist on the Stock Exchange of Thailand in the second quarter of 2025, while supporting the government’s strategy to establish Bangkok as a regional aviation hub.
Key Figures:
- 2023 Net Income: 165.49 billion baht (up 57% from 2022)
- Passenger Growth: 13.8 million passengers (up from 9 million in 2022)
- Fleet Expansion Goal: 143 aircraft by 2029
