Transport
Thai Airways ponders bankruptcy as it enters rehab

Thai Airways, which turns 60 years old this month, recorded a net loss of US$66 million in 2017, US$361 million in 2018 and US$374 million last year. As the airline contemplates getting its grounded planes back in the air, it’s now confronted with a PR disaster at home as the government ponders a bailout valued around 60 billion baht, around US$1.8 billion.
Thai social media has turned on the national carrier wondering why they are eligible for a massive state bailout and loans whilst many Thais, now out of work, are struggling to get their 5,000 baht hand-out from the government or end up waiting in food queues each day.
Now it emerges that one of the options could be putting the ailing airline into bankruptcy as an option to enable its rehabilitation. Ultimately the decision will be made by the Thai cabinet but the Thai Aways board has been resisting vital restructure for a decade, and filing for bankruptcy is seen as an option to take the key decisions out of their hands.
Thailand’s Finance Minister, Uttama Savanayana, says the government is open to the option but is looking at all possibilities for the national carrier. The government is a 51% shareholder. Rehabilitation of the airline could be enabled by an order from the bankruptcy court, or by the State Enterprise Policy Committee approving a rehabilitation plan.
Mr Uttama says that “time has run out, and the operator must change. While all parties try their best to solve the problem, there must be serious co-operation between them.”
Meanwhile, the Thai PM, Prayut Chan-o-cha has agreed to the moves towards rehabilitation for Thai Airways. And Deputy PM and Health Minister, Anutin Charnvirakul, said that several internal rehab plans have been conducted, but with no success. Another new option would involve debt rehabilitation with each of the lenders providing $300,000 or more. But the proposed plan will have to be decided by Thai Airway’s shareholders.
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.

-
Business3 days ago
Thai Airways has sold 11 of its old aircraft, 26 to go
-
Patong1 day ago
UPDATE: 19 year old Australian falls to his death at a Phuket hotel
-
Patong2 days ago
19 year old Australian falls to his death at a Phuket hotel
-
Crime3 days ago
More than 100 foreigners in Phuket swindled by visa agency
-
Expats2 days ago
Norwegian man stabs himself in Pattaya hotel
-
Coronavirus (Covid-19)3 days ago
Thai health chief received special drug due to obesity, not privilege
-
360 Reviews2 days ago
The best honeymoon resorts in Phuket for 2022
-
Thailand1 day ago
Storm ‘Chaba’ to impact Thailand, meteorologists say
You must be logged in to post a comment Login