Coronavirus: Thai Airways files for restructuring through bankruptcy court

Thai Airways airplanes park at the tarmac of the Suvarnabhumi airport in Bangkok. (File photo: Reuters)

Thailand’s flag carrier Thai Airways International will file a plan for restructuring its business with the Central Bankruptcy Court, a government spokeswoman said Monday.

Narumon Pinyosinwat said the plan submitted by the State Enterprise Policy Office to salvage the airline will be submitted Tuesday to for Cabinet approval. She said she had no details of the plan.

Thai Airways had been suffering financially even before the coronavirus crisis brought travel and tourism in the country to a near standstill.

Read more:

Coronavirus: Emirates announces flights between Dubai, UAE and 9 cities from May 21

Coronavirus: Air travel recovery could take three years, say Emirates, Etihad

The airline initially sought a 54 billion baht ($1.7 billion) bailout loan from the government. There is speculation that its reorganization under bankruptcy could take the government’s ownership share below 50 percent, effecting a form of privatization. All rescue options were likely to lead in cuts in staff, fleet and flights.

Thai Airways logged losses of 12 billion baht ($374.3 million) in 2019, 11.6 billion baht ($361.9 million) in 2018 and 2.11 billion baht ($65.8 million) in 2017.

Thai media reports say it is carrying a debt burden of almost 300 billion baht ($9.4 billion).

The airline stopped all its flights at the beginning of April as Thailand imposed strict precautions to curb the spread of the coronavirus. Almost all its staff were put on leave at greatly reduced salaries. The government last week extended to the end of June a ban on arrivals on international passenger flights, ruling out their immediate resumption.

Read more:

Coronavirus: Newborn babies in Thailand don face shields to protect them from virus

Coronavirus: Thailand lockdown pushes 60,000 migrant workers to leave: Official

SHOW MORE
Last Update: Wednesday, 20 May 2020 KSA 10:06 - GMT 07:06
Top