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Thai Airways: No resolution of filing for bankruptcy

Thai International Airways has responded to earlier news that it is filing for bankruptcy. In a statement, the airline said, "Thai’s reform plan has been approved by [Thai’s] board of directors on 17 April 2020 and presented to the State Enterprise Policy Office for consideration on 29 April 2020. The plan will soon be presented to the cabinet for further action. The board of directors had no resolution of filing for bankruptcy as appeared in the news.”

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Earlier news from Reuters however said that the airline will be restructuring in a bankruptcy court. A senior spokeswoman from the Thai government confirmed to Reuters the filing similar to a Chapter 11 bankruptcy. Narumon Pinyosinwat, Thai Government spokeswoman said, "“The State-Enterprise Planning Office agreed in principle for the rehabilitation of Thai Airways in court… the procedure will be submitted to cabinet tomorrow."

It is however understood that the Thai government will extend US$ 1.4 billion in lifelines to the Thai flag carrier.

There are still no details regarding the rehabilitation plan as the airline has US$ 2.87 billion in debt. The airline has also posted losses since 2013.

Thai Airways' woes was further accelerated by the CoviD-19 pandemic which has caused the airline to suspend commercial passenger flights in March.

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