Thailand’s Central Bankruptcy Court on Monday approved rehabilitation plans for troubled flag carrier Thai Airways and appointed Ernst and Young as well six of the current TG board to help oversee the plan.
THAI suspended all international flights and shut down its overseas offices since March 25 due to the coronavirus pandemic and the economic fallout.
The pandemic has hit the airline hard with the flagship carrier but the airline was already struggling even before the pandemic posting a net loss of 2.11 billion baht in 2017, 11.6 billion baht in 2018, and 12 billion baht in 2019.
The airline said in early April that they only have enough cash left to pay their employees’ wages for one month as the yearly budget for 2020 is now down to 10-12 billion baht.
It is unclear whether more employees will be let go because of the rehabilitation plan. As part of the troubled airline’s rehabilitation process, low-cost wing Thai Smile will be merged with TG.
The news that the rehabilitation plan was approved was greeted cautiously on the SET with shares of TG up 7.69 per cent before the lunchtime break.