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Monday, June 5, 2023

Thai Airways International Plc and Thai Smile Airways Granted Approval for Merger

Thai Airways International Plc (THAI) and its subsidiary, Thai Smile Airways, have received the green light from the Thai Airways Creditors Committee for their merger, marking a significant milestone in THAI’s restructuring plan. The committee’s decision, announced on May 18, paves the way for the consolidation of the two airlines.

Under the merger, Thai Smile’s fleet of 20 aircraft will be transferred to THAI later this year. This strategic move is expected to bring about a reduction in operational costs by up to 20% and an increase in daily flight hours by 11. Currently, Thai Smile leases its fleet from THAI, and the integration will streamline operations and improve efficiency.

By combining resources, THAI aims to enhance the utilization rates of its aircraft. Thai Smile’s average daily flight hours currently stand at 9, whereas THAI operates at an average of 12-13 flight hours per day. By integrating Thai Smile’s Airbus A320 aircraft into its fleet, THAI anticipates a boost in daily aircraft utilization by 11 flight hours.

The increased utilization will enable THAI to expand its coverage of both domestic and international routes, extend night-time flight operations, and achieve significant cost savings of up to 20%, as highlighted by THAI CEO Chai Eamsiri.

THAI plans to inform the Stock Exchange of Thailand regarding this development and initiate the necessary procedures for transferring the management rights of the 20 aircraft. Notifications will also be communicated to the Civil Aviation Authority of Thailand and the Ministry of Transport as part of the merger process.

Noah Gallix
Author: Noah Gallix

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