Thailand’s Central Bankruptcy Court has approved of Thai Airways rehabilitation plan under the appointment of EY Corporate Advisory Services and the company’s board members as a team of debt rehabilitation planners.
The Central Bankruptcy Court had announced the trial order regarding the petition of business rehabilitation of Thai Airways International Public Company Limited today, September 14, at 10:00 AM, allowing Thai Airways to officially enter the rehabilitation process.
The rehabilitation plan will be primarily conducted by EY Corporate Advisory Services, a global financial advisory services company, and six Thai Airways Directors including Air Chief Marshal Chaiyapruk Didyasarin, Chakkrit Parapuntakul, Piraphan Salirathavibhaga, Boontuck Wungcharoen, Piyasvasti Amranand, and Chansin Treenuchagron.
Thai Airways had clarified 5 initial financial solutions in the rehabilitation as follows:
1. Debt restructuring: The repayment obligations and repayment periods must be in line with current cash flows. The company will find additional financial sources and funds to improve liquidity in the short term while adjusting the long-term capital structure.
2. Improve flight routes and the overall aircraft fleet: The cancellation of non-profitable routes including modifying flight route management and reducing aircraft types to reduce costs.
3. Improve the organization and business companies relating to the airline: By improving flexibility in management services such as forming a subsidiary, providing joint venture with other business partners, and finding new business opportunities
4. Improve the company’s commerce strategy and earning potential: By improving the service system and ticketing procedure such as the internet and other platforms
5. Reduce the organizational structure: By reducing duplicate work, increasing the potential of each business sector, adjusting the sufficient number of employees as well as adjust compensation benefits to the social security system and other relevant laws.
Previously, Chansin Treenuchagron, Acting President of Thai Airways, told the Associated Press that the terms and details of customer’s refund policy were also included in the rehabilitation plan.
They were expected to take effect within 1-2 months after the examination of the rehabilitation petition by the Central Bankruptcy Court was completed. All customers would only have to fill an application form to refund their payment while the rest of the process would be done by our officers, according to the Acting President.
It is important to note customers interested in a refund or voucher will need to wait until Thai Airways announces the process involved is completed.