THAI expects the bankruptcy court to approve the revised rehabilitation plan

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Thai Airways International (THAI) awaits its revision rehabilitation plan be approved by headquarters bankruptcy Court. The submitted revision comes after the ailing airline made a better-than-expected recovery from its demise caused by Covid-19. But his rehab plan didn’t come unchallenged by some creditors.

Chai Eamsiri, the airline’s acting chief financial officer and senior chief, says once the plan is approved, the company will continue with its debt restructuring program.

“THAI wants to make sure it has strong finances so it can recapitalize when the time is right.”

Chai says once the plan goes into effect, the company will lose its state-owned status. The Treasury’s stake in the company will fall from 44 percent to 33 percent after the plan begins.

“The plan marks the point of no return for THAI as it will then move on as one [public] company, not a state company.”

The revised plan will give creditors more stakes in the company than state agencies, a move Chai said will reduce political influence over the company’s operations.

“Reducing that influence will allow the board to run the airline professionally.”

According to Chai, the company expects to complete its rehab plan in two years. He expects the company to continue to do better than last year. THAI has forecast that it will carry 4.5 million passengers this year. Chai says that passenger volume will increase even further when Japan and China reopen this year.

According to the International Air Transport Association, this year’s traffic in July increased by almost 60 percent compared to the same period last year. Domestic traffic also rose by 4.1 percent year-on-year in July. Total domestic traffic in July 2022 was almost 87 percent of the July 2019 level.

SOURCE: Bangkok Post

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