The government has accepted a new rehabilitation plan for Thai Airways International (THAI) after a meeting led by Prime Minister Prayut Chan-ocha on Wednesday that could see it become mostly owned by the private sector, according to the State Enterprise Policy Office’s director-general Prapas Kong-ied.
The government has accepted the short and long term rehabilitation plan earlier approved by the Ministry of Finance (MOF) and the Ministry of Transport (MOT), said Prapas. He did not provide further detail, according to local reports.
The short term plan involves a loan or a bond worth 50-70 billion baht which will provide them with enough liquidity to continue operations until December.
The long term plan involves the government selling some of its stakes in the company to provide more liquidity.
The Ministry of Finance currently holds 51.03 per cent of THAI’s shares but under the new rehabilitation plan, that ratio will be reduced to 48 per cent.
If carried through the airlines will no longer be a majority state-owned company.
Other business units will now become subsidiaries, including its catering, ground service, cargo, and technical departments.
THAI Smile Airways will also become its own company.
