The government of Thailand announced Tuesday (19 May) that flag carrier Thai Airways International will be restructured in a bankruptcy court in a process that was finalised Monday by the country’s State Enterprise Committee, which oversees policies for state-owned enterprises. Thai Airways, like every other carrier in the world, has suffered because of the COVID-19 pandemic and the virtual halt to air traffic.
“Thai Airways will enter a rehabilitation process under the court,” said Thailand’s Prime Minister Prayuth Chan-ocha after a cabinet meeting on Tuesday. “This is my decision and the cabinet’s,” he added.
The committee retracted its earlier resolution to grant a short-term loan backed by the Finance Ministry.
“The prime minister has stressed the need to make the public understand that this is not about entering bankruptcy, but undergoing a process of rehabilitation,” said government spokesperson Narumon Pinyosinwat on Monday. Thailand’s bankruptcy law covers both bankruptcy proceedings and rehabilitation proceedings.
Thai Airways said it would not resume its international flight operations until 30 June, after the Civil Aviation Authority of Thailand extended its landing ban for international flights for another month.
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