Thai Airways International (THAI) is looking to spin off some of its business units into subsidiaries to keep the company growing.
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Thai Airways International (THAI) is looking to spin off some of its business units into subsidiaries to keep the company growing.
Chai Eamsiri, president of THAI, said the company will have the opportunity to upgrade various business units that have the potential to operate their own businesses into subsidiaries.
The strategy would initially be implemented in business divisions in charge of aircraft maintenance and catering.
With an estimated average profit margin of almost 20% a year, those business units have the potential for “good profitability”, he said.
This is greater than the main airline industry, which has an annual profit margin of roughly 5–6%, he said.
Furthermore, because the spin-off would display business gains and losses, it will be evident which business unit has a future, he said.
As subsidiaries, they will have to compete with…