THAI expects bankruptcy court to approve revised rehabilitation plan
Thai Airways International (THAI) awaits its revised version rehabilitation program be approved by the central Bankruptcy To research. The submitted review comes after the struggling carrier bounced back better than expected from its Covid-19-induced slump. But, his rehabilitation plan did not come without pushback from some creditors.
Chai Eamsiri, the airline’s acting chief financial officer and senior manager, said once the plan is approved, the company will continue with its debt restructuring program.
“THAI wants to make sure it has strong finances so it can recapitalize when the time comes.”
Chai says once the plan is launched, the company will lose its state-owned status. Shares in Finance Ministry companies will fall from 44% to 33% once the plan is launched.
“The plan marks the point of no return for THAI, because afterwards it will go forward as a [public] company, not a state enterprise.
The revised plan will give creditors more equity than state agencies in the company, a move that Chai says will reduce political influence over the company’s operations.
“Reducing such influence will allow the board to manage the airline professionally.”
Chai says the company expects to complete its rehabilitation plan in two years. He says he expects the company to continue to do better than last year. THAI expects to carry 4.5 million passengers this year. Chai says that passenger volume will increase even more if Japan and China reopen this year.
According to the International Air Transport Association, this year’s traffic in July was up almost 60% compared to the same period last year. Domestic traffic in July was also up 4.1% from a year ago. Total domestic traffic for July 2022 was nearly 87% of the July 2019 level.
THE SOURCE: Bangkok Post