Image courtesy of Aerolopa
Thai Airways International (THAI) is set to transform some of its business units into subsidiaries as part of its growth strategy.
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Thai Airways International (THAI) is set to transform some of its business units into subsidiaries as part of its growth strategy. Chai Eamsiri, THAI President, announced the plan, emphasising the potential for various business units to operate independently.
Chai highlighted the initial focus on the aircraft maintenance and catering divisions, which boast an estimated average profit margin of nearly 20% annually. This figure stands in stark contrast to the main airline industry’s annual profit margin of approximately 5% to 6%, indicating strong profitability potential for these units.
“The spin-off will reveal the financial performance of each unit, making it clear which ones have future prospects. As subsidiaries, they will need to compete for contracts from Thai Airways and other organisations.
“We believe our employees in these units will not…