Creditors to vote on rehabilitation plan for Thai Airways
Thailand’s cabinet will convene today to vote on the rehabilitation plan of Thai Airways International.
The airline company is on the verge of bankruptcy after the pandemic exacerbated the firm’s lackluster financial standing, brought on by years of mismanagement. Today’s cabinet meeting will determine if the airline company’s largest stakeholder–the Thai government–will reinstate the airline as a government-owned enterprise.
Despite the cabinet’s clear polarization concerning the matter, it’s unlikely that Thai Airways will become a state-owned company. Given the present situation, it would be challenging for the Thai government to provide the necessary capital funding for the airline to improve economically.
Instead, expect the Thai government to consider reducing its shares in Thai Airways in the short- to medium-term depending on the size of outside investment. On the other hand, creditors will likely approve the rehabilitation plan, which in turn, will benefit the airline company as it targets to bounce back from its poor economic state and continue its international flight routes this year. The rehabilitation plan and the continuation of international air travel will also have a positive impact on Thailand’s tourism sector as it’s a major component of Thailand’s GDP.
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