Airline keeps losing money
Image adapted from: TTRW
Thai Airways’ future doesn’t seem to be as smooth as silk as the company may have to file for bankruptcy to get itself out of the debt-ridden situation.
On Monday, the State Enterprise Policy Office (SEPO) greenlighted the rehabilitation plan that will allow Thai Airways International (THAI) to file for bankruptcy.
The Thai national flag carrier has been consistently seeing net losses in recent years. The airline faced a net loss of ฿2.11 billion in 2017, before the number grew to ฿11.6 billion in 2018 and ฿12 billion last year, according to Bangkok Post.
Debate among taxpayers
Image credit: Thai Airways
THAI is legally a state-owned company as 51% of the shares is held by the Finance Ministry, making it the country’s responsibility to keep the national carrier going.
This pushed the government to seek a short-term loan of around ฿134 billion as the rescue cost.
However, many Thai taxpayers voiced their disapproval regarding the solution, especially when the world economy is now facing a huge recession due to the coronavirus pandemic.
Thirachai Phuvanatnaranubala, former finance minister, said: “it will be difficult to explain to the public why the state has to use taxpayers’ money to bail out an airline where private shareholders make up 49%, and some of them are foreign shareholders.”
Bankruptcy is not the end
Image credit: Chiangrai Times
Although Thai Airways has to face bankruptcy, it is not the end for the 60-year-old airline. It can still run the business in accordance with a rehabilitation plan under the Bankruptcy Act.
Also, the government can still provide financial help later when the economic situation is improved.
According to Thai Enquirer, the airline doesn’t have enough money to pay its 21,000 employees throughout the year of 2020.
There may not be a clear future for Thai Airways, but we hope this is just another heavy turbulence before the sky is cleared again.
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