THAI angles for a return to global glory

Thai Airways International (THAI) is aiming to make a comeback and reach a top 10 global ranking for airlines. Story recaps the airline's descent to bankruptcy protection in 2020 and explains THAI's attempts to turn things around. What happened to THAI in 2020? THAI filed for bankruptcy protection in May 2020 at the Central Bankruptcy Court. The anticipated move came after the formerly stateowned enterprise received cabinet approval to undergo a rehabilitation process. The airline was mired in financial woes for a number of years. A Stock Exchange of Thailand (SET) filing revealed THAI's assets tallied 256 billion baht at the end of 2019 and its debt-to-equity ratio skyrocketed to 21:1. The firm's financial struggle was exacerbated by the pandemic, with strict air travel regulations leading the airline to suspend flights as tourism disappeared. THAI's earnings report in the first half of 2020 showed a major loss of 28 billion baht. Initially the government planned to bail out THAI, but it faced severe criticism from the public. The cabinet later insisted it avoided throwing a financial lifeline to the airline because it needed the money for relief schemes to ease the impact of Covid-19 shutdowns, aiming to reinvigorate the economy. The court-dictated rehab in 2020 reduced the Finance Ministry's majority stake in THAI and cost the airline its state enterprise status, but it saved THAI from creditors. How does the airline restructure its massive debt? The airline received the go-ahead for its original rehabilitation plan from the Central Bankruptcy Court in mid-June 2021 to restructure its 400-billion-baht debt. Story has more.<br/>