Cash strapped Thai Airways to seek bankruptcy rehabilitation

Thailand’s flag carrier Thai Airways International will file an idea 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 have been suffering financially even prior to the coronavirus crisis brought travel and tourism in the united states to a near standstill.

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%, effecting a sort of privatization. All rescue options were more 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 really is carrying a debt obligations of almost 300 billion baht ($9.4 billion).

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