Thai Airways International (THAI) Plc and the Transport Ministry have denied a rumour the national carrier will be declared bankrupt in May.
Caretaker Transport Minister Chadchart Sittipunt said yesterday there was no substance to the rumour which is spreading on social media and the internet.
He also denied a rumour that a politician would take over the airline.
Mr Chadchart was responding to a report that a political group which has influence over the airline's board is attempting to ruin the company financially.
Their efforts helped push the company to a loss of 6.35 billion baht in the third quarter of last year.
According to the rumour the company, which is listed on the Thai stock exchange, would declare bankruptcy in May.
That would pave the way for a debt-restructuring process and for ousted prime minister Thaksin Shinawatra to take over the company.
"The rumour is groundless," Mr Chadchart said.
Chokchai Panyayong, THAI senior executive vice-president and acting president, said it was impossible THAI would go bankrupt since the company is a state enterprise in which the Finance Ministry holds a stake of up to 51%.
Therefore, those who want to be shareholders must buy shares on the stock market knowing they can only hold a minority interest.
He said THAI's financial status is still far from bankruptcy.
"THAI has never once defaulted," he said.
Despite its loss in the third quarter of last year, the company still has high liquidity and has a clear plan for debt repayment, he said.
Mr Chokchai said that as of Sept 30 last year, THAI had 315.9 billion baht in assets and liabilities of only 183.5 billion baht.
He said the loss stemmed from the company's huge investment in improving its fleets and services to attract more customers.
Mr Chokchai said THAI aims to increase revenue by 5% next year, thanks to its new fleet of 14 aircraft and an energy cost reduction plan.