Cash-strapped Thai Airways to seek restructuring

Thailand's cashstrapped 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", though its union said.