Airlines Thai Airways agrees on government restructuring plan
Thai Airways has announced that the airline has agreed to a reform plan in order to secure the airline from going bankrupt.
After the Coronavirus hit Thai Airways, the carrier asked the government for a bail-out via a 58.1bn baht loan. Now, Thai came up with a new restructuring plan in order to avoid going bankrupt. The plan will be implemented through the business reorganization chapter under the auspices of the Central Bankruptcy Court of Thailand, the airline stated.
During this process, Thai is able to operate flights and to run its business as usual. "Although THAI’s reform plan will be implemented and exercised through the business reorganization chapter under the bankruptcy law, THAI will not be dissolved or go into liquidation or to be declared bankrupt," the airline said in a statement, citing Mr. Chakkrit Parapuntakul, Second Vice Chairman and Acting President at Thai Airways.
A severe financial crisis hit the global aviation industry, after coronavirus travel restrictions lead to a heavy decrease of passenger numbers. Thai had been struggling with its financial performance in the past and is especially hit by the pandemic.
The carrier added: "THAI is committed to do everything possible to emerge from the crisis situation. This is an important step for THAI to change in order to become a stronger and more sustainable entity. THAI expressed its gratitude to all concerned in every sector of the economy, shareholders, partners, alliance, customers and in particular all THAI passengers for their continued support and confidence in the airline. THAI will resume full operations once the Covid-19 situation subsides."
Thai Airways is the flag-carrier airline of Thailand and operates with a fleet of 75 aircraft, including 15 Airbus A330s, 12 A350 XWBs, six A380s, eight Boeing 747s, 26 777s and eight 787 Dreamliner. Thai was founded in 1960 and commenced operations in 1988. Main hub is at Bangkok Airport. The airline is member of the Star Alliance and has a subsidiary airline with Thai Smile.
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