Thai Government Approves Bankruptcy Plan for Thai Airways

Thailand's Cabinet approved a plan to restructure troubled Thai Airways International's finances through a bankruptcy court, the Southeast Asian country's prime minister said on Tuesday (May 19). Thai Airways, though, had been in trouble even before the outbreak of the coronavirus due to stiff competition from budget airlines and bloated costs.

It posted losses every year after 2012, except in 2016. In 2019, it reported losses of US$377.3 million.

Thai Airways will not be dissolved or go into liquidation or be declared bankrupt," Thai Airways acting president Chakkrit Parapuntakul said in a statement.

Operations, including passenger and cargo transportation, will continue in parallel with the plan, he said.

Thai Airways shares surged 11.7 per cent on Tuesday, but are still down by about a third this year.