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Thai Airways union says it won’t oppose bankruptcy proceedings

Jack Burton

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Thai Airways union says it won’t oppose bankruptcy proceedings | The Thaiger
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“We opposed this position before but after reexamination, we have to show creditors that Thai Airways will genuinely follow the restructuring plan. Including adjustments to the board and staff.”

In an abrupt reversal, the president of Thai Airways’ labour union announced yesterday that the union won’t oppose the government’s plan to reduce holdings in the airline and restructure the carrier through bankruptcy proceedings.

The U-turn comes after the Cabinet resolved on Tuesday to reduce the government’s holdings in the national carrier to below 50%, stripping the airline of its status as a state enterprise and enabling it to file for bankruptcy.

The union previously indicated it would protest any plan that would reduce the government’s shares to less than 50%. Under Thai law, state-owned companies are governed by a separate set of management and labour laws. The Ministry of Finance currently holds a reported 51.03% in Thai Airways.

After the government finds buyers for its shares and Thai Airways loses its status as a state enterprise, its union will be dissolved. Its president says a new union will be formed in accordance with labour laws.

“This is a painful reality… we will hold discussions with the Transport Ministry to ensure workers are taken care of.”

Thai Airways shares were up nearly 15% in early afternoon trading yesterday, but are down 21% for the year to date.

PM Prayut Chan-o-cha defended the “difficult decision” to send Thai Airways into bankruptcy restructuring in a carefully worded statement.

In a Twitter thread yesterday afternoon, Prayut said (in English) that bailing out the financially battered Thai Airways did not make sense, particularly during the Covid-19 pandemic, as the government needs to reserve funds to help people facing financial hardship.

Thai Airways union says it won't oppose bankruptcy proceedings | News by The Thaiger

SOURCE: Chiang Rai Times

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Jack Burton is a writer, broadcaster, linguist and journalist who has lived in Asia since 1987. He attended the Henry Grady School of Journalism and his works have appeared in The China Post, The South China Morning Post, The International Herald Tribune and many magazines throughout Asia and the world.

1 Comment

1 Comment

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    Muhammad waseem

    May 21, 2020 at 7:08 pm

    Helo please now i want back home kindly start thai airline and open thai airport

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Business

No role for Transport Ministry in Thai Airways rehab plan

May Taylor

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No role for Transport Ministry in Thai Airways rehab plan | The Thaiger
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After initially insisting on having a say in the management of the rehabilitation plan for the beleaguered Thai Airways, the Ministry of Transport has conceded that, with its holding in the airline reduced to less than 50%, it no longer has any jurisdiction over what is now a listed public company.

Deputy Transport Minister Thaworn Senneam says the struggling carrier is no longer a state organisation under its control and administration of the court-approved rehabilitation plan now sits with the Finance Ministry.

Thai PBS World reports that both ministries had clashed over who would oversee the plan as, until filing for bankruptcy protection, the airline was both a listed public company with the Finance Ministry as its largest shareholder, and a state enterprise under the Transport Ministry.

The Transport Ministry had hoped to recommend 4 people as members of a “super board” that would oversee the administration of the airline’s rehabilitation plan, with other members to be nominated by the Finance Ministry.

The jockeying for position of the ‘super board’ has already begun with prominent names publicly putting themselves forward.

SOURCE: Thai PBS World

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Economy

Thailand’s economic forecast among Asia’s worst: central bank governor to step down

Jack Burton

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Thailand’s economic forecast among Asia’s worst: central bank governor to step down | The Thaiger
PHOTO: Bank of Thailand Governor Veerathai Santiprabhob - Chiang Rai Times

The governor of the Bank of Thailand will step down when his term ends in September. Veerathai Santiprabhob announced yesterday that he has decided against seeking a second 5 year term for “family reasons.” His departure comes as Thailand sees its economy contracting as much as 6% this year, mostly as a result of the impacts of lockdown provisions to protect citizens from the coronavirus, including closing the borders. Thailand’s economy is among the worst in Asia as Covid-19 has shattered its vital tourist sector.

Last week, the head of the BoT’s selection committee said said the application period for the next chief will run for 15 business days, from today to June 16, and the shortlist of candidates will be announced by July 2. The committee will meet on June 18 to compile the list of applicants, who will each present their vision for the central bank in late June. The candidates will not be announced until the selection process is finished, and if there is only one, or no candidates, the application period will be extended.

With the bleak economic outlook due to the the Covid-19 pandemic, the next BoT governor will face a challenging task.

Thailand’s gross domestic product is expected to shrink 5%-6% in 2020, according to the National Economic and Social Development Council. Yesterday’s estimate is “based on a limited outbreak in the second quarter,” a spokesman told journalists, adding that “the situation is still hard to predict.”

The new projection follows data showing GDP shrank 1.8% in the first quarter from a year ago, the first contraction since 2014. That was lower than the median estimate for a decline of 3.9% in a Bloomberg survey of economists and compares with revised growth of 1.5% in the fourth quarter.

Thailand relies heavily on tourism and trade, both of which have taken a severe blow as countries around the world imposed restrictions to contain the virus. Official data show a 74.6% plunge in tourist arrivals in March compared to last year.

“We don’t really see the full impact in this quarter yet. The worst is coming in the second quarter, and most of the population will be affected.”

SOURCES: Chiang Rai Times

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Events

Thai Fruit Golden Month festivals to be held in 8 Chinese cities

Jack Burton

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Thai Fruit Golden Month festivals to be held in 8 Chinese cities | The Thaiger
PHOTO: Chiang Mai CityLife

8 Chinese cities will host Thailand Fruit Golden Months Festivals as local governments there begin easing lockdown measures and travel restrictions. The director-general of the Department of International Trade Promotion made the announcement yesterday, saying the the festivals will promote Thai fruit exports around China.

“The campaign aims to increase the export of durian, mangosteen, longan, mango, rose apple, coconut, pomelo and banana. China will host the festivals from May to July in Shanghai, Qingdao, Nanning, Chengdu, Chongqing, Xian, Xiamen and Kunming.”

“For offline activities, sales booths will be set up at leading department stores in each city. As for online activities, the department and the local authorities will jointly host online business matching from May onwards to invite Chinese retailers to order Thai fruits online to sell in their stores as well as hold promotional campaigns with Chinese mobile applications, like Geso and Hema, to increase sales.”

“The department will also promote Thai fruits in other markets, such as Singapore, Myanmar and Laos in a similar manner once the local governments ease lockdown measures.”

In April, at the height of the Covid-19 pandemic, China opened 2 border gates in its southern Guangxi province to allow imports of Thai fruits from the Vietnamese side. Chinese are big importers of Thai fruit, especially Thai-grown durian.

SOURCE: Nation Thailand

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