Thai Airways Awaits Bailout Plan

Thai Airways International (THAI) is still waiting on the greenlight to enter the much anticipated rehabilitation program. This is in part due to two laws requiring legal procedures to be followed.

Prime Minister Prayut Chan-o-cha has noted that the Finance Ministry is still surveying several options to save the national airline and that THAI does not need to file for bankruptcy as of yet.

The two laws that require procedures include one governing the company’s labor union, and the State Enterprise Act.

But Prayut says, “A method must be established to take care of the problem.”

As a majority shareholder in THAI, the ministry says they must look at the strengths and weaknesses of other plans to recover the airline with one plan detailing a 50 billion-baht loan guaranteed by the ministry.

However, the 50-billion-baht bailout loan comes with strings attached as THAI was ordered to furnish an all-out rehabilitation plan to be submitted to the Transport Ministry, the Finance Ministry, the SEPC and later to the cabinet for approval.

Furthermore, the plan has been criticized by several experts and politicians who say it would be costly and affect reforms that the national carrier needs to carry out.

THAI posted a net loss of 2.11 billion baht in 2017, which ballooned to 11.6 billion in 2018 and 12 billion last year, according to The Stock Exchange of Thailand (SET).

Study results need to be reported to Finance Minister Uttama Savanayana before they are mulled over with Transport Minister Saksayam Chidchob with the first set of discussions expected to happen in the near future.

SOURCE: Bangkok Post

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