The government of Thailand is allowing national flag carrier Thai Airways International to restructure under the supervision of the local bankruptcy court.
The airline was previously seeking a 58.1 billion baht ($1.81 billion) loan from the government to help it through the coronavirus crisis. Thai officials told the airline to come up with a restructuring plan to avoid bankruptcy.
“The Thai Cabinet approved the reform plan for [Thai Airways] which will be implemented through the business reorganisation chapter under the auspices of the Central Bankruptcy Court of Thailand and the Bankruptcy Act. In the meantime, [Thai Airways] is able to operate flights and run its business as usual,” the carrier said in a statement posted on its website.
The state-owned carrier also said “it will not be dissolved or go into liquidation” or be “declared bankrupt”.
The carrier has previously denied “rumours” that it was looking to file for bankruptcy.
“[Thai Airways] is committed to do everything possible to emerge from the crisis situation. This is an important step for [Thai Airways] to change in order to become a stronger and more sustainable entity,” the carrier said on its website.
The airline said yesterday that it will extend international flight cancellations until the end of June after the Civil Aviation Authority of Thailand extended its ban on international flights coming in to Thailand for another month. The airline also noted that the resumption of flights in July “is still under consideration”.