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THAI Seeks Court Approval Of Its Revised Rehabilitation Plan
(CTN News) – On July 1st, Thai Airways International filed a petition with the Central Bankruptcy Court seeking to revise its rehabilitation plan, with the expectation that it may exit by 2025.
A government spokesman said yesterday (Tuesday) that THAI’s progress report, prepared by the committee charged with following up on the airline’s progress under the court-approved rehabilitation program, was acknowledged by the cabinet.
Thailand filed for bankruptcy protection at the end of 2019 after reporting total debt of 245 billion baht. The Bankruptcy Act rehabilitation was approved by the cabinet in May 2020. A bankruptcy court approved the Rehabilitation plan later.
It is reported that THAI’s revenue from transportation operations has increased significantly, with an average of 12,654 passengers a day, including over 12,000 passengers using Thai Smile during June.
Thailand’s Rehabilitation Plan carried 33% of all passengers. Freight and parcel revenues for June amounted to 2.06 billion baht, up 44% from the same period last year.
Downsizing by 73% has reduced THAI’s personnel costs from 29.4 billion to 7.9 billion baht per year. By reducing aircraft types in its fleet from nine to four, it has cut operating costs by about 8.5 billion baht.
There have been sales of eleven Boeing 737-400s, an Airbus 340-500, and four Airbus 340-600s, with 18 more in the works.
It has also managed to reduce aircraft maintenance costs by 4.5 billion baht a year and sold non-core businesses for 9.5 billion baht.
The Royal Thai Air Force and the Royal Thai Police are among the government agencies it is attempting to recoup payments from. A portion of the airline’s head office has also been leased out.
As of June 30th, THAI reported 14 billion baht in net cash reserves, the highest level in 24 months. As a result, the Rehabilitation Plan may require new funding of about 12.5 billion baht, rather than 50 billion baht as permitted under the restructuring program.
According to Thanakorn, creditors will meet in September to discuss the revised rehabilitation plan after it has been approved by the court.
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