Thai Airways International (TG, Bangkok Suvarnabhumi) will present a new turnaround plan to the State Enterprises Policy Commission on September 12, the Bangkok Post has reported.
The new plan will focus on improving the carrier's premium product in a bid to become one of the top five airlines in the world. Among the leaked proposals is a cooperation with Michelin-rated street food vendors from Bangkok to improve the quality of the on-board catering.
In terms of its business strategy, the Thai flag carrier will look into its cooperation with Thai Smile (Bangkok Suvarnabhumi), its fully-owned regional subsidiary, and Nok Air (DD, Bangkok Don Mueang), an LCC in which Thai holds a 21.8% stake. The group is mulling launching travel packages for foreigners visiting Thailand which would include an international flight operated by the mainline unit and domestic services to secondary regional cities onboard Thai Smile or Nok Air.
Chairman Ekniti Nitithanprapas also said that Thai Airways could take part in a new round of financing for financially struggling Nok Air, but only if other shareholders also approve the new plan. Thai Airways is the second-largest shareholder of the LCC after the Jurangkool family who collectively owns 49.34% of shares.
Thai Airways itself has been financially struggling for a number of years. In 2017, the carrier lost THB2.86 billion bahts (USD87.4 million). It barely broke even in 2016, but posted a net loss in 2013, 2014, and 2015.
The junta-run State Enterprises Policy Commission listed Thai Airways as one of six state-owned firms in urgent need for a turnaround. Among the other five is the Thai national railway operator and the Bangkok urban transport authority.
