Connect with us

Coronavirus (Covid-19)

Cabinet gives the green light for Thai Airways to file for bankruptcy



FILE PHOTO: Instagram@mr_luc4

Today PM Prayut Chan-o-cha has announced that the Cabinet approved the proposal from the Ministry of Transport that Thai Airways can file for bankruptcy at the Central Bankruptcy Court in order to be rehabilitated under the Bankruptcy Act.

“It was the best course to help the troubled airline back onto its feet. Under the rehabilitation plan, Thai Airways will not receive financial assistance from the government and its 20,000 staff will not be laid off. It was a difficult decision but it is in the national and public interest. With professional management, it will regain its strength. Staff will keep their jobs and it will be restructured. The court will decide the details.”

According to Nation Thailand, the premier declined to give details of the rehab plans, though the Cabinet has reportedly approved a plan by the Finance Ministry, the major shareholder in Thai Airways, to sell 3% of its shares in the carrier to the second largest shareholder The Vayupak Fund. The ministry currently holds 51% of the airline’s shares, while the Vayupak Fund owns around 15%, and the Government Savings Bank holds around 2.1%.

The carrier’s acting president said that airline “will not go bankrupt” but will carry out its rehabilitation plan effectively. Pending the rehabilitation process, Thai Airways will continue with its normal services.”

Thai Airways’ assets are estimated at 256 billion baht as of the end of last year, while its total debts stand at 245 billion baht, according to the SET (stock exchange of Thailand).

In 2018, Thai Airways International recorded a net loss of 11.6 billion baht and in 2019, 12 billion baht. The airline is forecast to lose 18 billion baht in the first half of this year, partly due to the impact of the international Covid-19 crisis.

SOURCE: Nation Thailand | Bangkok Post


Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

My name is Anukul, I a writer for the Thaiger, I specialise in translation articles and social media, and assisting with our video production. I previously worked at Phuket Gazette and attended BIS international school in Phuket.

Follow Thaiger by email:

Road deaths2 hours ago

Singaporean car driver dead, 7 injured in Phuket crash with bus

Thailand3 hours ago

FDA says Thailand unaffected by contaminated Haagen-Dazs

Crime5 hours ago

Foreign parrotfisher in Krabi says he’s sorry

Sponsored2 days ago

BKFC THAILAND 3: Moment of truth set for September 3

Chon Buri5 hours ago

17 year old the 18th victim of Mountain B fire, 27 still in hospital

Economy6 hours ago

After poor South Koreans die in flooded basement home, will there be change?

Thailand6 hours ago

10 Unique Superstitions of Thai People

Join the conversation on the Thaiger Talk forums today!
Weather7 hours ago

Tropical storm ‘Mulan’ makes a splash in the north of Thailand

Patong8 hours ago

Fire breaks out at Patong bar

Politics10 hours ago

Exiled Sri Lanka President warned to stay in his hotel in Bangkok

World10 hours ago

UPDATE: Salman Rushdie on ventilator, details on stabber emerge

Thailand11 hours ago

Campaign to get international training for Thai teen declared record sprinter

Crime11 hours ago

Royal birthdays bring over 100,000 royal prison pardons

Video11 hours ago

The Voice Behind the World’s Top Brands ft. Krit Tone Sukawat | Thaiger Podcast Ep.2

Press Room12 hours ago

Thailand as your next destination for Motorcycle Adventure post-COVID

Crime13 hours ago

Singaporean and Thai swindler couple arrested in Malaysia

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11