Thai pitches simplified fleet and rental haircuts: sources

THAI has outlined a broad plan to its lessors that would involve reductions in both its total fleet size and the number of aircraft types it operates, plus haircuts for lessors, sources have revealed. The carrier’s CFO presented the proposals during a 21 October virtual meeting held over Webex, four of the attendees said. “They are simplifying the fleet and they are asking for the restructuring of all their leases as well,” said one. “The meeting yesterday was mainly an introduction of their restructuring plan and what they are going to do with the fleet in future.” Thai’s fleet includes multiple aircraft types ranging from Boeing 737-400s to Airbus A380s. Market sources have suggested to Cirium that the diversity of aircraft does not make for a sustainable business model, especially in the Covid-19 environment. Requests for proposals will set a 4 November deadline, two of the Webex meeting’s attendees said, giving lessors less than two weeks to present their best offers to the airline. “[They are saying]: ‘This is what we want; what can you offer?’ If you don’t give them what they want and other people do, you have more chance of being rejected. Even if everyone gives them what they want, they don’t want all the aircraft,” said one of the two. Sixteen lessors have exposure to Thai Airways to the tune of 41 aircraft, Cirium fleets data indicate.<br/>