Thai Airways announced Tuesday that the government has approved its proposal for a major restructuring plan that will be controlled by the country’s central bankruptcy court. The plan is intended to prevent the company from being dissolved, forced into liquidation or declared officially bankrupt.
The Ministry of Finance and the State Government Savings Bank hold a majority stake in the airline.
Thai Airways plans to continue operating throughout the process, which means that passenger and freight flights can be performed as scheduled by the airline. It is not clear which, if any, the services offered by Thai Airways could be affected by the restructuring plan or if any jobs will be lost.
His shares rose 14.6% in Bangkok on Tuesday afternoon. The stock has plummeted 32% so far this year.
Thai Prime Minister Prayut Chan-o-cha said at a press conference on Tuesday that his cabinet has considered several options for the country’s besieged airline, including liquidation.
Eventually he decided against a sale because it could have caused “more than 20,000 employees to lose their jobs,” said Prayut. The airline had over 21,000 employees at the end of last year.
“Thailand, and the whole world, are facing a crisis. Everyone’s income is declining from the Covid-19 effect,” added the prime minister. “We must prioritize our budget to help people in the future.”
These challenges prompted management to continue with a large ten-year turnaround plan, including the search for new joint venture opportunities to strengthen its portfolio and investments in technology to become more efficient and reduce costs.
Now he will have to press reset again.
“[This] it was such a tough decision, but it was made to protect our nation and people’s interests, “said Prayut on Tuesday.” I and all Thais would like the same thing, which … will become our national airline, which used to be our national pride again. “
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