Thai Airways Files for Bankruptcy
May 18, 2020
Source: Sam Chui Aviation News
By: Ted Perton
The Thai Government has confirmed that its national airline, Thai Airways International, will begin restructuring proceedings in a bankruptcy court.
A senior government spokeswoman confirmed to Reuters that the airline will be filing for the Thai equivalent of Chapter 11 Bankruptcy.
“The State-Enterprise Planning Office agreed in principle for the rehabilitation of Thai Airways in court… the procedure will be submitted to cabinet tomorrow,” Source: Narumon Pinyosinwat, Thai Government spokeswoman, via Reuters
The declaration of bankruptcy will replace a previously announced business rescue package. It is understood that the Thai Government will now extend 58.1 billion baht ($1.4 billion) in lifelines to the struggling airline.
No plans for rehabilitation have been detailed, although it is understood that Thai Airways currently has over 92 billion baht ($2.87 billion) in debt. A restructure will likely see the airline’s long-haul fleet cut down significantly.
Thai Airways is the long-time flag carrier of Thailand, the vast majority of the airline is owned by the Thai Finance Ministry.
Thailand has been in a State of Emergency since mid-April, as most international flights are forbidden from landing in Thailand. Thai Airways has posted consistent annual losses since 2013.