BANGKOK: Thai Airways International Pcl, the nation’s flagship carrier, has received court approval for its business restructuring.
The Central Bankruptcy Court has decided that the airline can proceed with its business reorganisation plan, a crucial step forward for the embattled company, which has around 350 billion baht (US$11bil) of debt, according to acting president Chansin Treenuchagron.
The flagship carrier is facing one of its biggest challenges in its 60-year history as the pandemic hits the country’s tourism-dependent economy. The company’s shares jumped as much as 10.7%, the most since Aug 5. Shares of Nok Airlines Pcl, a budget carrier in which Thai Airways holds a stake, also rose.
The Covid-19 crisis has devastated the global travel industry, forcing airlines to suspend flights, lay off employees and seek financial help from governments and investors.
Virgin Australia Holdings Ltd and Avianca Holdings SA, Latin America’s second-largest airline, have gone into administration or sought bankruptcy protection.
If the airline fails to rehabilitate, it would damage the company, employees, debtors, investors and the whole economy, the court said in a statement after ruling on the carrier’s petition yesterday.
Industry strains have been mounting in Asia, with Singapore Airlines cutting about 20% of its workforce.
The court also approved Thai Airways’ request to appoint EY Corporate Advisory Services Ltd and the carrier’s board members as debt revamp planners. The airline plans to submit a debt plan to the court in the fourth quarter and aims to complete the restructuring process in five years, according to Chansin. — Bloomberg
Did you find this article insightful?
100% readers found this article insightful