THAI moving forward with fleet expansion

Airline signs lease agreement with SMBC Aviation Capital for eight Airbus A321neo aircraft

Thai Airways International Pcl (THAI) said on Sunday that it is moving forward with expanding its fleet. The airline has signed a lease agreement with SMBC Aviation Capital, a leasing company headquartered in Ireland, for eight Airbus A321neo aircraft. The delivery of these airliners is scheduled for 2026 and 2027, as part of a broader order placed by SMBC Aviation Capital with Airbus.

THAI currently has orders for a total of 19 A321neo, 27 A321-200NX, and four A321-200NX(LR) planes. The acquisition of these narrow-body aircraft aligns with Thai Airways' long-term strategy to enhance operational efficiency, replace older leased models, and retire ageing aircraft from its fleet.

Previously, THAI also announced an order for 45 Boeing 787-9 aircraft and signed an additional lease agreement with AerCap, which includes 10 more A321neo aircraft. 
Conor Stafford, head of airline marketing at SMBC Aviation Capital, said the A321neo will improve Thai Airways' operational efficiency, enhance passenger comfort, and contribute to reducing the airline's environmental impact, helping to meet the strong recovery demand in the aviation sector.In a separate development, L3Harris Technologies, a US-based aviation and defense-technology company, has partnered with Thai Airways to sign a two-year pilot-training agreement. This agreement involves providing pilot training on a full-flight simulator (FFS) for the Airbus A320. 

The training will take place at L3Harris' Pilot Training Centre near Suvarnabhumi Airport, which is designed to develop pilots’ skills in line with global standards. 

David Coward, general manager and vice-president of training services at L3Harris, emphasised that this collaboration supports its goal of being a key partner for leading airlines worldwide. Training for Thai Airways pilots began last month, with both companies committed to carrying out the programme over the next two years.

As part of its recovery and future plans, THAI aims to exit its rehabilitation plan in May. The conditions for the success of the plan have been fully met, and the airline is in the final stages of fulfilling the last condition. This involves collecting the list of representatives proposed by shareholders to form the new board, with the deadline for submissions having passed on January 31.Chai Iamsiri, chief executive of THAI, announced that the company has received the list of proposed board members from shareholders. The management team will compile this list and present it for approval at the first annual general meeting (AGM) of shareholders, scheduled for April 18. Shareholders will vote to appoint suitable candidates to the board, which will oversee Thai Airways' policies after the airline exits the rehabilitation plan.

Chai emphasised that an appropriate board structure is essential for greater operational flexibility. He noted that while many companies have boards with five to 15 members, Thai Airways' board has typically operated at full capacity, with most members being government representatives because of THAI’s status as a state enterprise. He suggested that to improve operational efficiency, the board size should not exceed the 15-member cap.

The new board members will be selected from shareholder representatives in proportion to their shareholdings. The government remains the major shareholder, holding about 48%, which would entitle it to appoint around three to four representatives to the board.

Meanwhile, other shareholders, including creditors who converted their debt into equity, hold around 52% of the shares and will have the right to appoint their own board members. 

Notable shareholders include Bangkok Bank, which is entitled to appoint one representative, and the Electricity Generating Authority of Thailand Savings Cooperative, which also has the right to appoint one representative.

Thai Airways plans to file its request to exit the rehabilitation plan in April. Afterward, the approval process is expected to take about one month. Once approved, THAI is projected to resume trading on the Stock Exchange of Thailand (SET) in the second quarter of 2025.

(2025/02/09-00:00)