Thailand: Airlines strive to restore their prospects

Over the past two years, amid the pandemic, the aviation industry has been on the verge of collapse because of stringent border controls and uncertainty over travel rules, causing severe financial strain for many airlines. Struggling to stay afloat after a sharp reduction in air traffic, cash-strapped local airlines found an emergency exit by filing for bankruptcy protection with the Central Bankruptcy Court. The country's flag carrier Thai Airways International (THAI) was the first to submit a rehabilitation petition on May 26, 2020 after a cabinet meeting one week earlier agreed the airline should undergo restructuring to maintain its business. The airline, which had been under financial pressure prior to the outbreak, reported total debts of 245b baht at the end of 2019 with a net loss of 12b baht, after reporting a loss of 11.6b in 2018, according to the Stock Exchange of Thailand (SET). On June 15, 2021, the court accepted the rehabilitation plan, resulting in the airline becoming the first carrier to enter into business restructuring for a period of at least five years. Under the rehabilitation process, THAI is obliged to reduce its workforce from 29,500 in 2019 to just 15,200 as well as cut its costs to 53b baht by this year. The airline also trimmed its enormous fleet of 116 jets to 58 jets. However, three additional aircraft, which were ordered in 2018, were delivered in April to serve long-haul flights which benefit from country's reopening and a brighter tourism outlook. Story has more about other carriers.<br/>