Thai Airways is a step closer to restructuring in bankruptcy court.
Flag carrier Thai Airways International is a step closer to restructuring its business with the Central Bankruptcy Court.
According to reports, an agreement has been reached between the airline and the Thai government to restructure the business.
“The State-Enterprise Planning Office agreed in principle for the rehabilitation of Thai Airways in court…the procedure will be submitted to Cabinet tomorrow,” government spokeswoman Narumon Pinyosinwat told Reuters.
Restructuring via a bankruptcy court is not the same thing as filing for bankruptcy and being wound up, she clarified.
The carrier initially sought a $1.7 billion bailout loan from the government, however, that no longer seems to be the case as the ‘restructuring procedure’ has been agreed in principle.
The airline recorded losses of $374 million in 2019 and $361 million in 2018. Analysts say Thai Airways is carrying a debt burden of almost $9.4 billion.
Governments worldwide have committed more than $85 billion to propping up airlines after the Covid-19 pandemic wiped out travel demand and grounded fleets.