Economy

Cash strapped Thai Airways to seek bankruptcy rehabilitation

Cash strapped Thai Airways to seek bankruptcy rehabilitation”

Thailand's national carrier, Thai Airways International PCL (Thai Airways), has chose to enter rehabilitation, making it the latest victim of the tourism decline brought about by the COVID-19 pandemic.

It would seem that the trend of businesses going in the red isn't about to change anytime soon, as it has just been reported recently that one of the world's most renowned airline companies, Thai Airways, will be filing for bankruptcy after suffering massive losses in revenue according to Asian Aviation.

Thai Airways, though, had been in trouble even before the outbreak of the coronavirus due to stiff competition from budget airlines and bloated costs.

Previously, the airlines had been awaiting a 58.1 billion baht (RM 7,912,736) bailout from the Thai government, reports The Star. "The airline will continue to operate", Prayuth said.

"Holders of Thai Airways' bonds are watching closely for details of its rehabilitation plan", Thiti Tantikulanan, senior executive vice president of Kasikornbank Pcl, said at a seminar.

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The government decided against extending the rescue loans, saying the firm was slow to make restructuring plans that were expected to include significant cuts in staff.

Thai Airways logged losses of 12 billion baht ($374.3 million) in 2019, 11.6 billion baht ($361.9 million) in 2018 and 2.11 billion baht ($65.8 million) in 2017.

Thai media reports say it is carrying a debt burden of nearly 300 billion baht ($9.4 billion).

The airline stopped all its flights at the beginning of April as Thailand imposed strict precautions to curb the spread of the coronavirus. Thailand's borders are restricted under a state of emergency through May and most inbound worldwide flights are banned until the end of June, though some domestic flights have restarted.



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