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Thai Airways Refunds Are Possible For Passengers, Reorganization Approved

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Thai Airways Refunds Are Possible For Passengers, Reorganization Approved

(CTN News) – The Central Bankruptcy Court approved Thai Airways International’s revised business reorganization plan. After submitting the plan last month, the airline will begin restructuring its finances.

Could this mean that everyone waiting for a refund from the Covid-19 pandemic before Thailand’s flagship airline declared bankruptcy would finally get their money back?

Thai Airways agreed with the bankruptcy court on Thursday to begin refunding customers who bought tickets before filing for bankruptcy in May.

However, don’t start your shopping spree just yet. Refunds should be completed by the end of January 2024. Refunds will be calculated based on the original ticket price.

As a result of cargo services, the airline has seen a better recovery than expected. As Covid restrictions eased and borders reopened, passenger and cargo traffic increased steadily, supporting improved financial and operational performance.

As of now, Thai Airways has a cash flow of around 20 billion baht. The airline carried just 2,092 passengers per day in January. But today, there are 17,554 a day.

The bankruptcy court just approved the airline’s restructuring plan, which has been approved by the Ministry of Finance and other creditors.

By 2025, Thai Airways should be back on the stock market and out of financial rehabilitation.

Over the next two years, they will hire a financial advisor to devise a debt-to-equity conversion recapitalization plan of about 25 billion baht, about half the previous target.

Thai Airways tightened the belt, reducing its staff from 29,000 to just 14,400 as part of its recovery. Approximately 3,800 crew members and 900 pilots are on the payroll, and salaries have decreased from two billion baht to 700 million baht.

Thai Airways has also sold 45 jets and kept only 58 planes, including three Boeing 777-300ERs, on a lease, according to the Bangkok Post.

Those aircraft were acquired in April when the world emerged from the Covid pandemic.

This week, Thai Airways added three more Boeing aircraft to its fleet. Alongkorn and Srimongkhon were christened on October 18 and 19, while Theparat will be christened on October 26.

In addition to being eco-friendly and fuel-efficient, the new plans are outfitted with state-of-the-art equipment.

Their long-haul flights will carry 255 economy passengers, 40 business passengers, and eight first-class passengers.

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