Thai Airways to enter restructuring through bankruptcy court

    Thai Airways announced (19-May-2020) Thailand‘s Cabinet approved a reform plan to be implemented through a business restructuring under the the Central Bankruptcy Court of Thailand and the Bankruptcy Act. Details include:

    • The carrier will continue to operate services and run its business as usual during the reorganisation;
    • It will not be dissolved, go into liquidation or be declared bankrupt;
    • The law provides equitable protection to all relevant stakeholders;
    • The business will be conducted in parallel with the reform plan to increase operational efficiency and improve product and service quality;
    • Thai will resume full operations once the COVID-19 situation subsides.

    Thailand’s Transport Minister Saksayam Chidchob stated: “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” (Reuters, 19-May-2020).