Why is an airline under bankruptcy protection receiving new aircraft?
Today, Thai Airways is taking delivery of two new Boeing 777 aircraft, despite spending most of the pandemic under bankruptcy protection and on the verge of liquidation. Why would an airline seemingly in financial trouble make such a purchase?
New aircraft despite bankruptcy protection
It is exceptionally odd for Thai Airways to be taking new aircraft deliveries at this time for multiple reasons. The airline has been in bankruptcy protection for years, but it has also faced liquidation, retired numerous aircraft, cut routes, laid off staff, and the list goes on... Thai had three Boeing 777s on order, and in December 2020, it was in conversations with Boeing about the fate of the three new widebody aircraft. The order was never canceled, and two of the three aircraft are being delivered today.
Previously, Thai's Boeing 777 aircraft featured a business class cabin, but never first class. The three new 777s will feature a flagship first product, which Thai does not offer on its current aircraft. One Mile At A Time suggested that the reason for the new aircraft with first-class cabins is so that the king can continue flying first, using the airlines' aircraft for his private travels.
The two 777s are currently en route to Bangkok (BKK) from Paine Field (PAE) in Everett, Washington, in the United States. The aircraft are registered as HS-TTA and HS-TTB and are named "Alongkorn" (HS-TTA) and "Theparat" (HS-TTB). Both names have a royal connotation, and "Alongkorn," specifically, is part of the king's name, "Vajiralongkorn." The third 777 is still performing test flights in the United States and will be delivered soon.
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New Interiors
Since retiring its Boeing 747 and Airbus A380 fleets, Thai has not offered a first class product. There is speculation that although the new aircraft will have a first class cabin, tickets will be sold as a 'business-plus' option. It is unknown what the Thai first class cabin will look like on the new 777s, as nothing has been released. Rumors are that the airlines' first class product is very similar to British Airways' first class cabin, but with different finishes.
British Airways first class cabin on a Boeing 787. Photo: British Airways
Turbulent times for Thai Airways
Thai Airways is no stranger to financial struggle. Simple Flying has written numerous articles about Thai's financial struggles. Some examples of the airlines' financial struggles include, but are not limited to:
- September 2018 - Thai Airways Significantly Reducing Flights to Australia
- November 2018 - Thai Airways Losses Double Whilst Turkish Airline Profits Triple
- August 2019 - Thai Airways Seeks New Turnaround Strategy
- August 2019 - Thai Airways Asks Their Passengers For Cost Cutting Ideas
- October 2019 - Thai Airways Places The Brakes On Major Order Plan
- November 2019 - Thai Airways Chairman Resigns - Here's What We Know
- April 2020 - Thai Airways Gets $1.8 Billion Government Bailout
- February 2021 - Thai Airways To Lay Off 395 Employees In Restructuring Plan
- March 2021 - Thai Airways To Lay Off Half Its Staff In Next Four Years
- June 2021 - Thai Airways CEO Resigns As Court Approves Rehabilitation Plan
- October 2021 - Thai Airways Set To Sell 3 Airbus A330s And A Flight Simulator
Thai is the third airline to announce the retirement of the Airbus A380. Photo: Thomas Boon | Simple Flying
For years, Thai has shown a pattern of immense struggles. Could it be that the airline is slowly pulling itself back from the brink? What do you think? Let us know in the comments.
Source: One Mile At A Time