Thai Airways gets court approval to exit bankruptcy plan

Thai Airways fleet docked at the main terminal from inside the new SAT-1 terminal at Suvarnabhumi International Airport in Bangkok on September 25, 2023 (Photo by Lillian SUWANRUMPHA / AFP)

BANGKOK, Thailand — A court has approved Thai Airways’ exit from its debt rehabilitation plan, launched after the flag carrier struggled to survive the collapse in tourism caused by coronavirus pandemic travel restrictions.

The Star Alliance member was plunged into crisis as global travel ground to a halt, triggering mass layoffs and forcing the airline to seek emergency government support.

Thai Airways entered court-supervised restructuring in 2020 to resolve debts of 400 billion baht ($12.3 billion), and said it has since “posted steady revenue since 2023”.

The Central Bankruptcy Court on Monday approved the airline’s exit from the program.

“Thai Airways has successfully rehabilitated its business through organizational restructuring, flight expansion and fleet improvement,” the airline said in a statement.

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To resume trading

The carrier plans to resume trading on the Stock Exchange of Thailand by early August after being delisted in 2021 over financial and shareholder issues.

The finance ministry remains the airlines’ largest shareholder, with a stake of nearly 40 percent.

The Central Bankruptcy Court ordered Thai Airways to repay around 190 billion baht to creditors over the next decade, of which it has already paid back 94 billion baht.

The airline had long been accused of mismanagement, and a 2020 transport ministry probe linked part of its financial woes to corruption.

Thailand’s tourism sector continues to lag behind prepandemic levels, with the government targeting 37 million visitors in 2025.

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