Ted has a private pilot license and has volunteered extensively with the Royal Flying Doctor Service, providing aeromedical care across the vast expanses of Australia. The Thai cabinet on Tuesday approved the ailing state enterprise Thai Airways International (THAI) to file for bankruptcy protection at the Central Bankruptcy Court to rehabilitate its business in the face of Covid-19 disruptions, evaporating liquidity and insurmountable debt, ending all possibility that the airline will receive any financial assistance from the government. Join 70,000+ others by subscribing to Sam Chui's weekly newsletter and be inspired by latest Aviation & Travel reviews and breaking deals! Its current liabilities of 84.4 billion baht far exceed its current assets of 49.5 billion baht, hindering its debt servicing ability. 20 May 2020 by Seher Asaf The government of Thailand is allowing national flag carrier Thai Airways International to restructure under the supervision of the local bankruptcy court. Ted has previously lived in San Francisco and Taipei, and is thrilled to be a part of the editorial team.I’m not sure if this would change things much. Thai Airways International Plc is a step closer to restructuring via a bankruptcy court after a key government panel backed the plan, which is due for consideration by the Cabinet on Tuesday. The decision will help the flag carrier avert bankruptcy and save it from furloughing its entire workforce of over 20,000.However, as the Ministry of Finance, THAI’s largest shareholder, will reduce its stake in the airline from the current 51 per cent to below 50 per cent to transform THAI into a limited company, THAI staff will no longer be protected by the State Enterprise Labor Relations Act. Thai was at one point the biggest Asian airlines to serve Europe but their market share were declined sharply due to competition from Gulf carriers and low cost carriers.Ted is an Australia-based content editor at SamChui.com. This is an important step for [Thai Airways] to change in order to become a stronger and more sustainable entity,” the carrier said on its website.The airline said yesterday that it will extend international flight cancellations until the end of June after the Civil Aviation Authority of Thailand extended its ban on international flights coming in to Thailand for another month. “Thai Airways will enter a rehabilitation process under the court,” said Thailand’s Prime Minister Prayuth Chan-ocha after a cabinet meeting on Tuesday. Thai Airways, like every other carrier in the world, has suffered because of the COVID-19 pandemic and the virtual halt to air traffic. The Thai cabinet on Tuesday approved the ailing state enterprise Thai Airways International (THAI) to file for bankruptcy protection at the Central Bankruptcy Court to rehabilitate its business in the face of Covid-19 disruptions, evaporating liquidity and insurmountable debt, ending all possibility that the airline will receive any financial assistance from the government. The firm is also reported to be pursuing a Chapter 11 bankruptcy filing in the United States with debts to foreign creditors appearing to be higher than initially anticipated being quoted on Wednesday at 70% of its outstanding liabilities. THAI is currently scheduled to resume flying passengers after June 30.THAI has been loss-making every year since 2013, except in 2016 when a small profit of 15 million baht was reported.
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COVID-19 is just one of the reasons that drags it to this point sooner. The hammer has come down on Thai Airways although not as drastic as it could have been as the government decided to send the airline through the bankruptcy process.