The government of Thailand announced that their flag carrier Thai Airways will be restructured in a bankruptcy court.
“Thai Airways will enter a rehabilitation process under the court. We have decided to petition for restructuring and not let Thai Airways go bankrupt. The airline will continue to operate”
Thailand’s Prime Minister Prayuth Chan-ocha
“The Cabinet also agreed the government will reduce its holding in Thai Airways to under 50%, ending the airline’s status as a state-enterprise” said Thailand Transport Minister Saksayam Chidchob.
If the request is accepted by the bankruptcy court Thai Airways would be given an automatic stay, restricting legal action from creditors.
Thai Airways said that the plan will be implemented through the Central Bankruptcy Court and it would operate as usual as the restructuring took place.
“Thai Airways will not be dissolved or go into liquidation or be declared bankrupt,”
Thai Airways Acting President Chakkrit Parapuntakul
Thai Airways said they would not resume their international flight operations until 30th June, after the Civil Aviation Authority of Thailand extended their landing ban for international flights for another month.
Bottom Line
Thai Airways have been one of my long time favourite airlines, so I sincerely hope it will emerge from bankruptcy protection as a stronger and more efficient airline.
What is not clear in the rehabilitation plan is whether there will be layoffs of staff or downsize of fleet and operations. Thai Airways currently operates a wide range of long haul aircraft including B747-400, B777-200/ER, B777-300/ER, B787-8, B787-9, A330-300, A350-900 and A380. The only narrow body planes are A320’s, operating under their subsidiary Thai Smile.
Thai was at one point the biggest Asian airline to serve Europe, but their market share declined sharply due to competition from Gulf carriers and low cost carriers.
What changes do you think we’ll see at Thai Airways?
Article Source: Reuters and Twitter
5 Business class tickets Melbourne to Chiang Mai and return. Flights scheduled for early April. Constant email contact with Thai Airlines – goal posts keep changing. Initially told refunds would take ten weeks then recently told refunds would take six months. Now under bankruptcy restructuring. $21,000 outlay on tickets looks to be at risk. Insurance won’t cover because cancellation due to pandemic
I wish they could look after their members (ROP)during the Covid
Some of the Airlines (Star Alliance) did offer to extend the expiry on their membership.
THAI FAN
I still have Thai flights booked Melbourne to Milan (September). I received an email saying that now they will be taking me to Zurich instead. a good 4 hours+ drive to my accommodation I have booked and prepaid. I of course cancelled the accom and was refunded in 48 hours.
Thai are like ” we are looking into it for you”. When it comes down to it what I paid for is not what they have supplied. It is for four people so is a fairly good quantity of money. One of our party has a serious auto immune disorder (T1D) and can’t possibly go to northern Italy anyway.
The travel agent also suggests waiting. I am insured as I took out the policy when flights were booked in November 2019.
Waiting……………………………………………………..
I think it is worthwhile to wait further.
I purchased two business class tickets Sydney to London return.
I cancelled in March 2020 and it was logged into the Thai airways refund system in mid April.
I was told it will take about 120 days for a refund.
Now that it is going through a restructure bankruptcy
What are my chances of receiving my refund?
John
120 days is better then what we were advised. We were told 6 months to get a refund +. We Two return flights Melbourne to Italy early April which were promised a refund with them. Chances not good now i think.