The Thai government is considering a bailout plan for Thai Airways International (THAI) that has been forced to suspend flights due to Covid-19 as the national flag carrier is running out of liquidity for employees’ salaries.
Deputy Prime Minister Somkid Jatusripitak called an urgent meeting on Thursday to discuss the rehabilitation plan proposed by THAI.
Under the proposal, THAI will acquire a 70 billion baht of loan for recapitalization while it will undergo restricting of its operation. The Ministry of Finance will be the loan guarantor.
THAI has suspended all flights due to the virus outbreak; its employees have ceased work and taken pay cuts. THAI executives informed that the company had only enough liquidity to pay salaries for this month only while it also needed to manage debt payments.
The Transport Ministry who oversees THAI says the bailout plan will be finalized next week. (TNA)