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Thai Airways to file for bankruptcy -Will that effect Traveling to Pakistan ?

Pakistani Community in Australia

Thai Airways to file for bankruptcy -Will that effect Traveling to Pakistan ?

Since 2017 Airline is reporting there losses.

Thai Airways, will begin restructuring proceedings in a bankruptcy court. A senior government spokeswoman confirmed to Reuters that the airline will be filing for the Thai equivalent of Chapter 11 Bankruptcy.

The company had previously planned to seek a 58.1 billion baht ($1.8 billion) rescue package from Prime Minister Prayut Chan-ocha’s government, who in recent years has kept the under performing company from collapse.

Thai media reports say it is carrying a debt burden of almost $9.4 billion. There is speculation that its reorganization under bankruptcy could take the government’s ownership share below 50%, effecting a form of privatization. All rescue options were likely to lead in cuts in staff, fleet and flights.

Thai Airways has issued a statement contradicting reports of bankruptcy that have appeared in news outlets worldwide.

“Thai’s reform plan has been approved by [Thai’s] board of directors on 17 April 2020 and presented to the State Enterprise Policy Office for consideration on 29 April 2020. The plan will soon be presented to the cabinet for further action. The board of directors had no resolution of filing for bankruptcy as appeared in the news.”

Thai Airways statement

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