Embattled flag carrier Thai Airways has invited potential buyers to join the bidding process for the sale of its 34 used Boeing and Airbus passenger aircraft.
The move is part of the carrier’s efforts to restructure THB350bn ($11.4bn) of debt amid the ongoing Covid-19 crisis, which has had a serious impact on the aviation industry.
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Those interested to submit their bids have a deadline of 13 November.
In September, Thai Airways International (THAI) secured approval from the Central Bankruptcy Court for its restructuring petition.
The aircraft on sale includes ten Boeing 747s, 12 Boeing 777s, nine Airbus 340s, two Boeing 737 and one Airbus 300. The planes are being offered on an ‘as-is, where-is’ basis, according to a statement on the airline’s website.
Thai Airways expected to deliver the planes to buyers by the second quarter of next year. It did not provide additional details on the sale.
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By GlobalDataThe company was quoted by Bloomberg as saying that it will ‘need to decrease the fleet size to be suited with the routes and efficiency required in the cost management plan. The actual sale would require approvals of relevant stakeholders and the Bankruptcy Court’.
In addition, budget carrier Nok Airlines, in which Thai Airways has a 13% holding, recently secured court approval to continue its debt rehabilitation plan after the pandemic affected its business.
Thai Airways holds an estimated debt burden of around TBH332bn ($10.8bn), according to the Stock Exchange of Thailand.
Earlier this year, the Thai Government reduced its controlling stake in the airline to 47.86%.
Late last month, nearly 5,000 Thai Airways International employees signed up for the company’s early retirement programme as the carrier struggles to reduce its operating costs.
