Uttama: Bankruptcy an option for THAI

Uttama: Bankruptcy an option for THAI

A traveller approaches the counter of Thai Airways International at Suvarnabhumi airport in Samut Prakan province last month. Finance Minister Uttama Savanayana said on Thursday the national airline needed a massive revamp, and filing for bankruptcy protection was one option. (Photo: Varuth Hirunyatheb)
A traveller approaches the counter of Thai Airways International at Suvarnabhumi airport in Samut Prakan province last month. Finance Minister Uttama Savanayana said on Thursday the national airline needed a massive revamp, and filing for bankruptcy protection was one option. (Photo: Varuth Hirunyatheb)

Filing for bankruptcy is an option for the rehabilitation of Thai Airways International (THAI), and the cabinet will make the final decision, Finance Minister Uttama Savanayana said on Thursday.

Rehabilitation could be through approval of a plan by the State Enterprise Policy Committee and the cabinet, or through an order issued by the Bankruptcy Court, he said.

"The Finance Ministry and the Transport Ministry, which supervises Thai Airways because it is a state enterprise, have discussed the development of a rehabilitation plan, but it will eventually depend on the decision of the cabinet, which will choose the best option for Thai Airways and all parties involved," Mr Uttama said.

He did not know when a decision would be made. It would have to be handled carefully and according to laws, because THAI was a state enterprise. If it was a private company, it would not be so difficult, the finance minister said.

Asked if THAI could still afford to pay staff salaries, Mr Uttama said negotiations with creditors were successful to a certain extent, keeping liquidity to some degree.

"All parties are trying their best to solve the problem. Time has run out. Thai Airways must change. All parties must seriously cooperate," he said.

"Conventional practices cannot continue. There must be a massive overhaul. Solutions are being considered and will be concluded with the cabinet's decision," Mr Uttama said.

According to Stock Exchange of Thailand filings, THAI posted a net loss of 2.11 billion baht in 2017, which ballooned to 11.6 billion in 2018 and 12 billion baht last year.


Do you like the content of this article?
COMMENT (57)

Two killed in separate incidents in Narathiwat

NARATHIWAT: A man was shot dead after returning from a forest to collect wild products and hunt animals in Si Sakhon district while a woman was found dead with gunshot and stab wounds in Tak Bai district of this southern province.

12:13

Omicron spreading in US: Virus Update

The Omicron variant is now in at least 10 US states and White House chief medical adviser Anthony Fauci said there is "absolutely" community spread. Gilead Sciences Inc recalled two lots of its Covid-19 drug remdesivir in the US after a complaint about glass particles in the vials.

11:52

5,896 new Covid cases, 37 new deaths

Thailand logged 5,896 new Covid-19 cases and 37 new fatalities during the previous 24 hours, the Public Health Ministry announced on Saturday morning.

08:23