The first airline in Asia region filed for bankruptcy since the coronavirus outbreak
May 28, 2020
Thai Airways International Public Company Limited (Thai Airways) submitted a request for a restructuring of its debt to the Central Bankruptcy Court in Bangkok on May 26, 2020. Reflecting on the current tendency in the aviation industry, the company has recently been hit by the impact of coronavirus consequences. However, even before the restriction of flights, Thai Airways had already been in financial difficulties due to the growing competition from low-cost carriers.
Previous attempts to support the struggling airline with the help of government-funded rescue package were ineffective and heavily criticized in the country. The new plan is intended to prevent Thai Airways from formally declared bankruptcy as a court's approval of bankruptcy protection allows the business to get a support plan as an alternative. The new plan also aims to provide the company with more flexibility and opportunities to follow market demands because since last week Thai Airways has been no longer a state-owned enterprise.
As a result, acceptance of Thai Airways’ bankruptcy petition granted protection from any creditor demanding debt repayment, which means that all of its debt obligations have been placed on automatic standstill by law. The company is given time to negotiate with its creditors until the first day of hearings on August 17, 2020.
Company — Thai Airways International
Full nameThai Airways International Public Company Limited