From Crisis to Comeback: Thai Airways’ Rehabilitation and Recovery Story
In 2020, Thailand’s flagship airline, Thai Airways, went into bankruptcy as COVID-19 unraveled some impending issues. How did the airline react and recover from dire times?
At a glance
Country
Thailand
Industry
Aviation
Founded
1991
Destinations
48 in 23 countries
(as of 2022)
Abstract
Thai Airways International, Thailand's national flag carrier and a founding member of the Star Alliance, has been a key player in the country's aviation sector since its inception in 1960. Known for its strategic location and regional connectivity, the airline has long served as a gateway between Southeast Asia and the world. However, years of financial difficulties, intensified by the COVID-19 pandemic, culminated in bankruptcy.
This case study investigates the factors contributing to Thai Airways’ financial decline. It also examines the airline’s recovery through its Business Rehabilitation Plan, which included debt restructuring, asset sales, workforce downsizing, and a merger with subsidiary THAI Smile. By 2023, these efforts yielded tangible results, with Thai Airways achieving profitability and targeting an early exit from rehabilitation. The case study delves into the airline's strategies, resilience, and opportunities for sustainable growth in a competitive global aviation market.
All rights reserved. © 2025 Nikkei Business Lab Asia. No part of this publication may be copied, stored, or transmitted in any form. Copying or posting is an infringement of copyright.
Disclaimers:
(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).