Thai Airways, with US$5.9 billion in debt, will sell some of its US$1.99 billion in non-core assets to cover some of the seven straight quarters of operating losses, according to Reuters.
The Bangkok-based carrier said that, as part of its restructuring efforts, it will end freighter operations later this month with the end of its A340-600 and 747-400BCF services.
Ch-aviation said that Thai’s five A340-600s are scheduled to be decommissioned on March 29, along with four A330-300s and two 747-400BCFs. The airline is also planning to sell 22 jets by July to improve its overall financial standing. If the first round of sales doesn’t make a positive impact on the airline’s bottom line, a second-round of sell-offs of approximately 20 more aircraft is planned.
Thai Airways is also suffering from macroeconomic problems that have plagued the country since it was taken over last May by a military junta, which dissolved the previous government and Senate. As a result, exports have fallen and tourism has slowed. The only other cargo handler at Bangkok airport, Bangkok Flight Services, recently announced deals with Ethiopian Air and Iran’s Qeshm Air, but said exports fell 4 percent in February, year-on-year, while imports increased 18 percent.
China’s Cathay Pacific saw increased profit last year, in addition to building a new freight handling facility at Hong Kong International Airport. With Thai pulling back from the cargo market, Cathay will be in an even stronger position.
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