A Thailand court on Monday approved the restructuring of Thai Airways, which is billions of dollars in debt and struggling to survive the coronavirus tourism crash. Most stock quote data provided by BATS. Another curiosity from airport tales in China was reported in the media this week as four men who were booked on a domestic flight... © 2011–2021 LoyaltyLobby.com - Site & Contents, Never seen a mural on a #watertower before. It finally happened: Thai Airways has filed for Bankruptcy Protection in Bangkok’s Central Bankruptcy Court on Tuesday and the petition was accepted on Wednesday afternoon. The carrier has requested a bailout package of around ฿70 billion from the government, according to media reports. The plan is intended to prevent the company from being dissolved, forced into liquidation or formally declared bankrupt. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. "[This] was such a hard decision, but it was done in a way to protect our nation and people's interests," Prayut said Tuesday. The Central Bankruptcy Court accepted a Thai Airways International (THAI) debt rehabilitation petition on Wednesday amid concerns of a technical setback after one of the airline’s board members poised to be made a rehab planner resigned. Four Chinese Passengers Eat 66 Pounds Of Oranges At Check-In To... Marriott Bonvoy Bonus Points & Rates Update February 2021. The carrier’s petition for rehabilitation, filed on 27 May 2020, was granted by the Central Bankruptcy Court on 14 September, allowing the company to proceed with its recovery plans. Considering THAI hasn’t operated any international or domestic flights in April, May and June I’d estimate that (considering the size of the airline) at least one Billion US$ [31 Billion THB] is outstanding to be repaid to passengers. The others are Piyasvasti Amranand, a former THAI president; Pirapan Salirathavibhaga, a former justice minister; and Boontuck Wungcharoen, a former CEO of TMB Bank. At the same time of the court filing the company did a big re-shuffle of their board of management as previously announced. This could have been a chance for THAI to get rid of their massive debt burden and restructure under competent leadership, maybe even looking beyond Thailand to find competent management that isn’t just a lackey of the government and local dignitaries. 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Thai Airways said on Monday that it would file for bankruptcy after suffering severe economic setbacks in the wake of the coronavirus pandemic, reported Khaleej Times.. A spokeswoman for Thai Airways said the flag carrier would declare bankruptcy in the coming days instead of going ahead with a rescue plan it had drafted following the most recent round of losses as a result of the … Just to recollect, Mr Piyasvasti was Thai Airways president between 2009 – 2012 and then dismissed by the board over “communication problems” concerning procurement of new aircraft, so basically corruption. Thai Airways was majority-owned by the Thai Government. THAI, which turns 60 years old this month, recorded a net loss of $66m in 2017, according to filings with the Stock Exchange of Thailand. Depending on who you asked or how you measured it, Thai Airways had debts above US$7.75 billion. Thai Prime Minister Prayut Chan-o-cha said at a press conference Tuesday that his cabinet weighed several options for the country's beleaguered airline, including liquidation. That was much of the problem. Thai Airways logged losses of $374.3 million in 2019, $361.9 million in 2018 and $65.8 million in 2017. Thai media reports say it is carrying a debt burden of almost $9.4 billion. More from Thai Airways. The airline had more than 21,000 employees at the end of last year. THAI earlier announced on its website that it will resume flight operations in July, a delay by one month as borders slowly begin to reopen and passenger start trickling in. May 5, 2020; 17 shares 17. By Kocha Olarn and Michelle Toh, CNN Business. 3 minute read; Advertisement: Struggling national carrier Thai Airways has been given a reason to hope today as it appears the government will support a bailout package for the airline. Cronyism at it’s best! Thai Airways files for bankruptcy at the Central bankruptcy court in Bangkok as 4 new heavyweight directors take their seats on the board. 8 Comments. Of course the chances of that were slim from the get go and considering who has been let go from management and reappointed to the board just reinforced the “good old boys club” policy that got Thai Airways into this position in the first place. 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. THAI’s Corporate Image and Communications Department said on Thursday it is unable to offer refunds at this time as the Central Bankruptcy Court admitted the airline’s request for rehab under the bankruptcy law on Wednesday. 0. He was one of four new additions to the airline’s board. All rights reserved. Those challenges had pushed management to forge ahead with an extensive 10-year turnaround plan, including looking for new joint venture opportunities to bolster its portfolio and investing in technology to become more efficient and cut costs. The Ministry of Finance and state-run Government Savings Bank own a majority stake in the carrier. Airlines that operated as subsidiaries of major groups have been among the most affected by closures during this 2020 unprecedented crisis. All times are ET. The final Thai Airways Airbus A380 passenger flight landed in Bangkok on 2nd April 2020. Now it will have to hit reset once again. Thai Airways officially entered its bankruptcy reorganization on Monday. May 29, 2020. Asking where the largest companies in the world are located and where the biggest bankruptcies of 2020 have taken place will give, quite unsurprisingly, the same answer. Factset: FactSet Research Systems Inc.2018. THAI is monitoring the situation and preventive measures and lockdowns in each country as well as travel demand to resume services as the Covid-19 situation improves,” the airline’s website said. Subsequently, the Ministry of Finance reduced its shareholding in Thai Airways to 48 percent, making the … Lovely r, How often do you do remote work at Starbucks? Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Thai Airways will be looking to get rid of planes once the coronavirus is over. The airline pledged to continue to take care of customers holding valid tickets as well as members of the Royal Orchid Plus, its loyalty programme. If a bank refuses one might have the option to complain to the national regulator for banking and financial products or the assigned ombudsman. Now Accepting Applications: What Does It Take To Become A $2000... Alaska Airlines Delays Oneworld Awards To Summer 2021. If you enjoyed this article, get our blog updates for free! Thai Airways International (THAI) has admitted that debt rehabilitation has kept it from refunding customers for unused tickets. All rights reserved. The government of Thailand announced Tuesday (19 May) that flag carrier Thai Airways International will be restructured in a bankruptcy court in a process that was finalised Monday by the country’s State Enterprise Committee, which oversees policies for state-owned enterprises. A new slate of seven planners were nominated by the company and also approved by the court. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Photo: Getty Images THAI has suffered heavy losses. The airline also lost over US$900 million in the first half of 2020. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Whoever thought the the overhaul of the board would result in industry experts being hauled in was probably dreaming, as the developments this week show all appointees are cronies of the political leadership, in other words: Business as usual at Thai Airways. … As Bangkok Post reported today many customers are also out of luck for their ticket refunds. Thai Airways currently operates a wide range of long haul aircraft including B747-400, B777-200/ER, B777-300/ER, B787-8, B787-9, A330-300, A350-900 and A380. "Thailand, and the whole world, are facing a crisis. The travel downturn pushed Thai over the fiscal cliff, but the airline had bled red ink for years. …. It is unclear what, if any, services offered by Thai Airways could be affected by the restructuring plan or whether any jobs will be lost. Th, Hyatt Asia-Pacific 20% Off Through May 14, 2021, Le Meridien Bora Bora Closes For Renovations (18 To 24 Months), Thai Airways Postpones Bankruptcy Plan Until March 3, 2021, Some Of Bangkok Airways & THAI Domestic Airport Lounges Shutting Down Again Due To Covid-19, Thai Airways Resumes Mini-Schedule To Chiang Mai & Phuket, Cancels New Year Celebration Flight. “Thai’s reform plan has been approved by [Thai’s] board of directors on 17 April 2020 and presented to the State Enterprise Policy Office for consideration on 29 April 2020. The airline reported a net loss of 28 billion baht ($927 million) in the first half of 2020. But it promises to return the money within six months without any fees. "I and every Thai would wish the same thing, that ... it will become our national airline, which used to be our national pride, again.". Likely the creditors and the customers. Analysis: Pakistan’s room to grow Posted 12 October 2020 11:54; Thai Airways International files special outbound flights in Nov 2020 Posted 7 October 2020 03:00 Thai Airways has issued a statement contradicting reports of bankruptcy that have appeared in news outlets worldwide. THAI i København-----Dear passenger, The COVID-19 outbreak has caused an unprecedented number of flight adjustments and cancellations across the world. The Southeast Asian carrier is the latest major airline to pursue restructuring after. Thai Airways’ (and its affiliates) revenue was 184.046 billion baht in 2019, That’s 15.454 billion baht lower than the previous year, or 7.7%. …. (Photo: TJDarmstadt) Is it farewell First Class? The losses spiraled to $361m in 2018 and $374m last year. Thai Airways has recorded constant annual losses since 2013. ", Like many other airlines, Thai Airways has. Prayut said instead of allowing the airline to go bankrupt, it will ask the insolvency court's for a reorganization that will allow it to set out a debt restructuring plan. Disclaimer. More than half of the debt of the company is held abroad and THAI will have to file for Chapter 11 Bankruptcy Protection in the U.S. as well as the most debt is held there. Thai Airways has long been the standard bearer of Thailand; the vast majority of the airline belongs to the Thai Ministry of Finance. Of course this amount will go up with each month where the airline can’t operate. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Bangkok/Hong Kong (CNN Business)Thailand's flagship carrier will be restructured with the help of a bankruptcy court, making it the latest airline to succumb to pressure from the coronavirus pandemic. Here's what the industry needs to get back on its feet. Formally, Thai Airways lost its standing as a majority state-owned enterprise in May 2020, when the Ministry of Finance sold a 3.17% stake in the airline, thus reducing its shareholding to 47.9%. Its shares jumped 14.6% in Bangkok on Tuesday afternoon. …. The final Thai Airways Airbus A380 passenger flight was TG921 from Frankfurt to Bangkok, flown by aircraft registration HS-TUC, touching down back at the carrier’s home base at 6.08am on 2nd April 2020. The only narrow body planes are A320's, operating under their subsidiary Thai Smile. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. The Central Bankruptcy Court had announced the trial order regarding the petition of business rehabilitation of Thai Airways International Public Company Limited … With Thai Airways fleet grounded since late March there many thousand passengers waiting for refunds of their tickets but this bankruptcy protection (or “Debt Rehabilitation” as they call it) filing refunds will be a long way out, even though THAI has promised they will eventually pay. Thai Airways will resort to the country's Bankruptcy Act to enter a sweeping "rehabilitation" plan following the government's refusal to extend a bailout package to the trouble's flag-carrier.. The stock has slumped 32% so far this year. #villa, On a positive note, at least it wasn't a bus gate, Interesting Covid-19 related restrictions. But as the petition was approved in court, Pailin Chuchottaworn, former CEO and president of PTT Plc, quit as a newly-appointed member of the THAI board, citing a violation of an anti-graft regulations. 0. No unde, Lovely afternoon walking around the #centrohistori, Difficult to find an item that doesn't have this E, Merida nights before the curfew kicks in. Thailand has been in a state of emergency since mid-April, as most international flights are prohibited from landing in Thailand. You just need to scroll up this list of 2020 airline bankruptcies to find a few examples (Avianca Perú, Germanwings, … Everyone's income is decreasing from the Covid-19 effect," added the prime minister. Thai Airways International Plc is a step closer to restructuring via a bankruptcy court after a key government panel backed the plan, which is due for consideration by the Cabinet on Tuesday. Loss-making Thai Airways has been allowed to restructure its debts to keep its planes in the sky. The firm is also reported to be pursuing a Chapter 11 bankruptcy filing in the United States with debts to foreign creditors appearing to be higher than initially anticipated being quoted on Wednesday at 70% of its outstanding liabilities. It all started on Tuesday when Thai Airways went to court and then Wednesday their petition was accepted according to Bangkok Post. "We have to prioritize our budget to help people in the future. Thai Airways announced Tuesday that the government has approved its proposal for a sweeping restructuring plan to be overseen by the country's Central Bankruptcy Court. “The revenue from passenger and cargo transport decreased by 8.6%, or 15.767 billion baht, while the total expenditure stood at 196.470 billion baht, or 5.8%, lower than last year.” The procurement of aircraft at Thai Airways has always been controversial as it’s widely known that the process of acquiring new planes the THAI presidents and CEO’s is being used to line their own pockets through kickbacks, a situation that led to the carrier having pretty much every single commercial aircraft in their fleet which cause skyrocketing maintenance costs. Who is going to suffer from all of this? To say it didn’t go exactly well would be an understatement. A THAI source said Mr Chakkrit also faced a conflict of interest allegation as he sits on the executive board of the Siam Commercial Bank, one of THAI’s creditors. Mind you this is an estimate on my side, there are no official figures that would prove- or disprove this right now. Forthcoming actions include a major debt restructuring, deep cost cuts, all-round reorganisation of the company, an income-generating capability shake-up and flight route improvement. It’s unclear how much money – if any – has so far been refunded. Thai Airways International has released details of its winter flight schedule, valid from 1 January to 27 March 2021. The Cabinet last week adopted a plan for Thai Airways to enter rehabilitation via the Bankruptcy Court, according to the Bankrupcy Act BE 2483. National – 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. Thai Airways is running out of its cash reserves, which reportedly, will last the carrier for one more month and is in the desperate need for a bailout package. Unfortunately, we have to inform you that TG951/TG950, Copenhagen-Bangkok v.v. If a charge back is successful often depends on the bank and how customer friendly they are. Thai Airways website has been updated to the affect that they will put THAI Smile back into service on June 1st, serving some domestic routes. Thai Airways announced Tuesday that the government has approved its proposal for a sweeping restructuring plan to be overseen by the country's Central Bankruptcy Court. Thai Airways, which turns 60 years old this month, recorded a net loss of US$66 million in 2017, US$361 million in 2018 and US$374 million last year. Bangkok Airways schedules new domestic routes in W20 Posted 11 October 2020 13:20; View More. As luck would have it, the bad news didn’t take long to come as the carrier announced that refunds won’t be forthcoming for at least six months as the law prevents THAI from any cash disbursements. Mr. Chansin Treenuchagron, Acting President and Member of the Board of Directors, Thai Airways International Public Company Limited (THAI), revealed that on 14 September 2020, the Central Bankruptcy Court issued an order for THAI’s business reorganization and appointed the planner as nominated by TH Want daily blog updates delivered straight to your inbox? Thai Airways expects to continue operating throughout the process, meaning that passenger and cargo flights can run as the company's schedule allows. The … It ultimately decided against a sale because that could have caused "more than 20,000 staff to lose their jobs," said Prayut. Thai Airways is facing a financial crisis due to the ongoing COVID-19 pandemic. In October the President of Thai Airways told employees that the airline was on the verge of shutting down with only a month's runway to execute a turnaround. The third quarter of 2020 showed a net loss of 21.53 billion baht ($713 million), according to Thai Airways financial statements. The Thai finance ministry will play the role of a guarantor. The airline is restricted by obligations under the law which prevents it from disbursing refunds at this point in time. The airline promptly worked to walk that back, suggesting it was hyperbolic, but it nonetheless underscored that Thai Airways is underperforming and in financial difficulty, propped up by the Thai government. “However, the (planned) resumption in July 2020 is still under consideration. It's Free! Passengers who paid by credit card and are now left hung out to dry might be well advised to attempt a chargeback through their credit card company considering the airline has now filed their case and is officially not completing any refunds anymore. The petition said THAI deserved to be revived because of its sound business foundations, years of experience, the profit-generating potential of its business units, and its brand value. Tough negotiations with creditors will commence before that process can get under way, a court source said. Those four and two other board members — THAI acting president Chakkrit Parapuntakul and airline chairman ACM Chaiyapruk Didyasarin — were nominated as rehabilitation planners in the petition submitted to the court. It finally happened: Thai Airways has filed for Bankruptcy Protection in Bangkok’s Central Bankruptcy Court on Tuesday and the petition was accepted on Wednesday afternoon.

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