fbpx

Govt approves plan for Thai Airways International to undergo restructuring

Deputy Prime Minister Somkid Jatusripitak will not allow ailing flag-carrier Thai Airways International to collapse and dismissed rumours of impending lay-offs. (Bangkok Post photo). Sketched by the Pan Pacific Agency.

Pan Pacific Agency | Subscribe

BANGKOK, May 20, 2020, NNT. The Prime Minister and Defense Minister, Gen. Prayut Chan-o-cha, says the cabinet ministers resolved that Thai Airways International (THAI) will undergo a restructuring process at the Central Bankruptcy Court and will appoint a professional administrator to help manage its operations, National News Bureau of Thailanf reported.

He insists that the decision was made after thorough consideration, while preventing some 20,000 workers from being laid off

The Prime Minister said today that the cabinet ministers agreed to have the national carrier undergo the restructuring process, so that their operations can continue. He admitted that it was a difficult decision to make, but after taking all factors, including the global outbreak of COVID-19, into consideration, it is important for the government to save public funding to help people in all sectors. Many people are having to cope with economic challenges and adjust their daily lives.

Although the country is able to control the public health situation to some extent, there are other areas that must be addressed, to make sure that people still have jobs and incomes. If THAI was allowed to go bankrupt, more than 20,000 people have lost their jobs.

The government will continue to provide full support to ensure that THAI can carry on with its operations. Even though the enterprise will not receive financial support from the government, it is protected by the Central Bankruptcy Court. The court will appoint a professional to help THAI manage its operations, bring growth and prosperity to the nation and complete a successful restructuring.

Share it


Exclusive: Beyond the Covid-19 world's coverage