Thai Government Approves Plan for Bankruptcy Court-led Restructuring of Thai Airways

Thailand’s cabinet approved a plan to restructure troubled Thai Airways International Pcl’s finances through a bankruptcy court, the Southeast Asian country’s prime minister said on Tuesday, Reuters reported. The plan for a court-led restructuring of the national carrier replaces a previous proposal of a government-backed rescue package that was heavily criticised in the country. The airline’s troubles are the latest example of how the coronavirus pandemic is crippling the global airline industry. Colombia’s Avianca Holdings SA AVT_p.CN and Virgin Australia Holdings Ltd (VAH.AX) have filed for bankruptcy protection since the pandemic broke out. Thai Airways, though, had been in trouble even before the outbreak of the coronavirus due to stiff competition from budget airlines and bloated costs. It posted losses every year after 2012, except in 2016. In 2019, it reported losses of 12.04 billion baht ($377.3 million). Read more

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