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