The national flag career airline of Thailand, Thai Airways International is struggling and needs a rehabilitation plan. The company is looking for the government’s support for negotiating with foreign creditors and renegotiating contracts with other enterprises.
The airline, affected by the corrupt practices, requested Central Bankruptcy Court for rehabilitation. Its request for rehabilitation is accepted by the Central Bankruptcy Court and the company is seeking the government’s help in different areas.
The company’s president Sumeth Damrongchaitham resigned from his post as soon as the results were released in March. Even though the airline saw an increase in the passenger number in early 2020, its losses continue to increase.
The airline has a total of 82 craft, but as of now only 13 are operational, and rests are grounded amid coronavirus crisis. The career is looking for ways to boost finances but needs the government’s support. The country’s Prime Minister Prayut Chan-o-cha showed an intention to help the airline, but he later announced that the airline will be placed in court-supervised business rehabilitation.
Two other options were also in consideration i.e. finding funds to keep it operational or letting it go bankrupt. He said that they need to keep the money, so they can help those affected badly and directly by the pandemic.
He also added that by deciding not to finance the airline, we are risking the abandonment of around 20,000 staff. The government does not want this, but with the rehabilitation process, the situation for Thai Airways will improve and the staff won’t lose their jobs.
The company has a list of legacy problems including change in presidents, constant political interference, and laziness in adopting new technology. The airways also acquire aircraft that did not fit the needs. The pandemic added to the problems.
The company wouldn’t have to go for rehabilitation in such a short time if the coronavirus crisis wouldn’t have happened. But, they were already in trouble, so going for rehabilitation is a positive thing. The government has taken a hard decision, but it shows the willingness to secure the future of the company.