April air passengers fall to lowest level since 1997
The number of South Korean air travelers fell to the lowest level in more than two decades in April due to entry restrictions and lower demand amid the coronavirus pandemic, industry data showed Tuesday.
The number of air passengers on domestic and international routes here plunged to 1.35 million last month, down 22 percent from 1.74 million a month earlier and down 87 percent from 10.14 million a year earlier, according to Air Portal, an aviation data provider operated by the Korea Civil Aviation Association (KCA).
The April figure marked the lowest level since January 1997, when the corresponding number reached 3.7 million, the data showed.
Local airlines have suspended most of their flights on international routes since March as an increasing number of countries have closed their borders or have taken other measures related to incoming passengers due to concerns over the coronavirus pandemic.
The number of flights operated by local airlines also plummeted 73 percent to 16,057 in April from 59,294 a year earlier, the data showed. In May, Air Portal said it expected travel demand to recover compared with last month, with domestic air travel demand on the rise as the COVID- 19 outbreak seems to have passed its peak.
From May 1-17, the number of domestic air travelers jumped 55 percent to 1.04 million from 668,143 in the same period of last month, Air Portal said. Korean Air Lines Co. and Asiana Airlines Inc., the country's two biggest carriers, plan to start resuming flights on dozens of international routes in June as they prepare for increased travel demand after countries ease entry restrictions.
Thailand's cash-strapped national carrier will look to undergo a restructuring through the kingdom's bankruptcy court, premier Prayut Chan-O-Cha said Tuesday, as the stricken company is battered by the crash in tourism caused by the coronavirus.
Thai Airways-which is 51 percent owned by the government-has long fought to stay afloat, registering losses of almost $800 million over the past three years.
Its troubles come as the world aviation sector faces its biggest crisis, with borders globally being closed, which has sent a number of airlines either into bankruptcy or forced them to seek massive government help.
Thai Airways' debt was 245 billion baht ($7.6 billion) at the end of last year, according to local media, which also said it was set to outpace its assets in 2020.
Prayut said instead of allowing the airline to go bankrupt, it will ask the insolvency court's for a reorganisation that will allow it to set out a debt restructuring plan.
"I am letting Thai Airways submit into the rehabilitation plan and we will not let them go bankrupt as it will affect more than 20,000 lives," he said in a televised address after a cabinet meeting Tuesday.
"It is the one way that the airline can operate and the staff still have a job," he said, adding the government would not provide financial support.
In a statement after the announcement, the airline said it "will not be dissolved or go into liquidation or be declared bankrupt".
Under Thailand's bankruptcy laws, a company undergoing rehabilitation will not have to repay its creditors during the process, said lawyer Ukrit Detsiri of Price Sanond, which represents international hotel chains and food and beverage companies.
Thai Airways creditors will have to work out a "best solution", which could mean debtors can only recover some of their money, said Ukrit.
Aviation expert Brendan Sobie said the troubled carrier has tried restructuring in the past, to no success.
"They've had issues with government and political meddling on a lot of decisions," said the Singaporebased analyst.
The government was previously mulling a 54 billion baht bailout for the airline, which was met with a public outcry.
Thailand's economy is expected to shrink more than six percent this year as the outbreak shatters the country's crucial tourism industry, with all flights into the country banned until the end of June.