Prayut happy with progress of THAI’s rehab plan
Prime Minister Gen Prayut Chan-o-cha said on Monday that he was satisfied with the progress made so far in the rehabilitation of the national carrier Thai Airways International (THAI).
“The economic team informed me this morning [November 8] that the rehabilitation is progressing as planned, with the airline having enough cash flow and unnecessary expenses reduced. Monthly expenditure is also dropping,” Prayut said. “THAI will always remain the national carrier and continue to operate under the rehabilitation plan. The airline will undergo some changes based on necessity and urgency.”
The prime minister also promised that the funds sought by the airline will not be reduced, but said the money will not be disbursed as yet. “Instead, I have suggested that the airline raise funds from other sources first,” he said.
THAI submitted a rehabilitation plan with the Central Bankruptcy Court on March 31 after its cash flow was blocked due to the Covid-19 pandemic and losses began piling up. The rehabilitation plan, which aims to restructure the airline and bring it back to making profits, was approved by the court on June 15.
The airline now has five years to recover under the court-approved plan. It can extend the deadline twice, and no more than one year per time. This means the entire rehabilitation process must be completed within seven years.
