Long before the COVID-19 pandemic had any effect on Thai Airways International Plc’s finances, the Southeast Asian Carrier was already in trouble, having failed to post a profit in all but one year since 2012 and reported losses of 12.04 billion baht (US$377.3 million) in 2019.
The state-controlled airline has struggled to deal with bloated costs and stiff competition from low-cost carriers in the region. However, the dramatic effect the pandemic is having on airlines, globally, now sees Thai Airways forced to seek a restructuring of the airline through a bankruptcy court. However, “Thai Airways will not be dissolved or go into liquidation or be declared bankrupt,” Thai Airways Acting President Chakkrit Parapuntakul said in a statement. “The government has reviewed all dimensions … we have decided to petition for restructuring and not let Thai Airways go bankrupt. The airline will continue to operate,” Prime Minister Prayuth Chan-ocha told reporters at a news briefing. “Thai Airways will be protected by the courts …. and a professional will be appointed to oversee the restructuring,” Prayuth said, adding the airline’s workers will continue to have jobs.
The airline will continue to operate as normal during the restructuring with passenger and cargo transportation continuing in parallel with the plan.
