THAI's new rehab plan gets court nod
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THAI's new rehab plan gets court nod

The Central Bankruptcy Court has approved Thai Airways International's (THAI) revised business reorganisation plan, setting in motion its full financial restructuring process, according to a high-ranking source in the company.

The court decision came after the airline submitted its revised plan last month.

The ailing flag carrier presented the revised plan following a better-than-expected recovery from the most financially trying period in its history.

It has reported steadily improving operational and financial performances and a healthier balance sheet since the easing of Covid-19 restrictions and the reopening of the country's borders, which has pushed up passenger and cargo traffic in recent months.

The plan was given the nod by the majority of creditors, including the Finance Ministry, which viewed it as a critical instrument for pulling the airline out of financial rehabilitation and returning it to the stock market faster, most probably by 2025, according to the source.

THAI will now proceed with hiring a financial adviser tasked with preparing the processes of debt-to-equity conversion and recapitalisation worth 25 billion baht to be completed over the next two years. The target is half of what was set prior to the business plan revision, the source said.

THAI has a cash flow of around 20 billion baht. It has reportedly added three more Boeing 777-300ER aircraft to its fleet. Two planes received this week were royally bestowed the names of Alongkorn and Srimongkhon. The third, also given the royally bestowed name of Theparat, is due to be delivered on Oct 26.

The planes, with eight seats in first class, 40 in business and 255 in economy, are also fuel-efficient and environmentally friendly.

Back in April, the airline took delivery of three Boeing 777-300ERs to meet the growing demand for flights. The jets are serving lucrative long-haul routes.

The flag carrier has reportedly sold or is in the process of selling 45 jets, leaving it with just 58 aircraft, excluding the three leased 777-300ERs.

THAI is deploying or re-deploying aircraft as it has continually restored flight frequency to several routes.

The airline's cabin factor has climbed to a solid 80% this year.

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