Proposed THAI rehab changes raise eyebrows
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Proposed THAI rehab changes raise eyebrows

Opposition sees two appointments as an attempt by government to regain control of airline

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Thai Airways aircraft on the tarmac at Suvarnabhumi airport. (Bangkok Post file photo)
Thai Airways aircraft on the tarmac at Suvarnabhumi airport. (Bangkok Post file photo)

Thai Airways International (THAI) has proposed to amend its rehabilitation plan for a second time and add two more members to the team overseeing the national carrier’s preparation to exit court-ordered debt restructuring.

The two members would be added to the executive team at the request of the Ministry of Finance, a major creditor, THAI said in a statement to the Stock Exchange of Thailand (SET).

The main opposition People’s Party (PP) has questioned the motive behind the ministry’s move. It accused the government of having an ulterior motive of trying to gain control over the airline at a time when it is starting to return to profit after almost three years of rehabilitation.

THAI made some changes to the rehabilitation plan on Sept 13 and now needs to amend it again to pave the way for a successful exit from rehabilitation, said CEO Chai Eamsiri.

The ministry, which is still a major shareholder, has requested that two more members be appointed to the rehabilitation planning team. Their expertise would be helpful in guiding the airline through the final stages of the process, according to Mr Chai.

The two prospective members are Punya Chupanit, director-general of the Office of Transport and Traffic Policy and Planning, and Polchak Nimwatana, a deputy director of the State Enterprise Policy Office (Sepo).

The three other members of the rehabilitation team are former energy minister Piyasvasti Amranand, Fiscal Policy Office director Pornchai Thiraveja and former THAI president Chansin Treenuchagron.

According to the ministry, the two officials would play a role in making important decisions with binding effect that may concern shareholders of the airline in the future, said Mr Chai.

THAI said earlier that it aims to issue new shares worth at least 42 billion baht to creditors and other investors by December, a major step towards exiting debt restructuring and resumption of trading on the SET.

Sirikanya Tansakun, the deputy leader of the People’s Party, drew attention to the issue in a post on her Facebook page titled: “Leave THAI alone!”

She said the government aims to control the airline’s rehabilitation by putting its own members on the team. The appointments would give the government decisive votes at meetings.

“THAI staff are still haunted by the government’s interference in THAI’s A340 aircraft procurement plan 20 years ago, which was responsible for the airline slipping into debt and related crises,” she wrote.

THAI lost its state enterprise status in 2020 after the Vayupak 1 Fund bought a 3.2% stake from the Ministry of Finance, reducing the latter’s holding in the carrier below 50%.

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