Thai Airways declares insolvency

For several weeks there have been various speculations about the future of Thai Airways. The Thai airline has been in the red for years, as a state-owned airline the Thai government has repeatedly pumped billions into Thai. The Corona crisis gave reason to reconsider this approach.

Thai Airways files for self-administered insolvency

The management of Thai Airways has developed a restructuring plan in recent weeks. This plan was approved by the Thai cabinet this week. Thus, Thai can reposition itself under the legal reform plan and has a chance for the future. Detailed information about the measures contained in this plan are not yet public at this time.

Thai Airways Business Class

However, it is important that Thai Airways does not cease operations or goes bankrupt. Thanks to the creditor protection procedure, Thai will be able to maintain its flight operations. All tickets remain valid and can be used. In a press release, the airline provides the following information on the current process:

Although THAI’s reform plan will be implemented and exercised through the business reorganization chapter under the bankruptcy law, THAI will not be dissolved or go into liquidation or to be declared bankrupt.  On the contrary, the business reorganization chapter will enable THAI to reach its reform plan’s objectives even more effectively step by step as required by the law which provides equitable protection to all relevant stakeholders while THAI will be able to conduct its normal business operations including passenger and cargo transportation.  The business will be conducted in parallel with the reform plan to increase operational efficiency and improve product and service quality.

 THAI is committed to do everything possible to emerge from the crisis situation.  This is an important step for THAI to change in order to become a stronger and more sustainable entity. THAI expressed its gratitude to all concerned in every sector of the economy, shareholders, partners, alliance, customers and in particular all THAI passengers for their continued support and confidence in the airline.  THAI will resume full operations once the Covid-19 situation subsides.

Thai Airways Press Release

Whether the airline will really recover remains questionable at present. Either way, it is a step in the right direction and it is positive that things will not simply continue as before.

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