Cabinet endorses court-sanctioned rehabilitation scheme for ailing THAI
Thailand’s cabinet has decided to let financially-strapped Thai Airways International enter a court-sanctioned rehabilitation scheme, under the Thai bankruptcy laws.
Speaking at a news conference today (Tuesday), Prime Minister Prayut Chan-o-cha admitted that it was a difficult decision for him to choose between injecting new funding into the ailing airline, letting the airline file for bankruptcy or entering a rehabilitation programme under the country’s bankruptcy laws.
The cabinet, he said, chose the court-sanctioned rehabilitation scheme, believing that the option is the best for THAI, so that the national flag carrier will be able to resume operations after going through a rehabilitation process to address internal problems in the organization.
“I would like everyone to go back and think about why we had THAI from the outset and whether THAI should continue to be a competitive organization that will bring fame and revenue to the Thai people,” said the Prime Minister, adding “It is about time we have the courage to undertake a court-sanctioned rehabilitation scheme.”
The Prime Minister said that he chose rehabilitation because he could not let the beleaguered national flag carrier to go under, which could have led to the mass layoff of over 20,000 staff.
“(I believe) we don’t want to see this happen and the Government is fully supportive of this scheme, so the airline can resume operations, albeit without Government financial support,” said the Prime Minister, as he explained that, under the rehabilitation scheme, the court will appoint professionals to manage the rehabilitation plan after the airline has undergone a major structural overhaul.
All stakeholders will be notified of the cabinet’s decision today, said the Prime Minister, adding that he hopes THAI will be able to stage a comeback.
“THAI was regarded as the cultural ambassador that helped to promote Thailand throughout the last 60 years, from one generation to another, be they cabin crew, mechanics, ground staff or others. I, and all Thais, hope that this rehabilitation programme will restore THAI to its former glory. This is my decision and that of the cabinet today,” said the Prime Minister.