Thai Airways aims to finish restructuring in 2024 as travel rebounds
Thai Airways aims to finish restructuring in 2024 as travel rebounds
https://asia.nikkei.com/Business/Transp ... 3&si=44594
Thai Airways aims to finish restructuring in 2024 as travel rebounds
Increased passenger traffic helps carrier halve capital needs under updated plan
Thai Airways International filed for bankruptcy protection in May 2020, during the early months of the coronavirus pandemic. (Photo by Akira Kodaka)
YOHEI MURAMATSU, Nikkei staff writerJuly 2, 2022 00:44 JST
BANGKOK -- Thai Airways International on Friday announced that it expects to complete its capital restructuring in 2024 through a debt-for-equity swap, as easing travel restrictions from COVID-19 lift its performance.
The embattled flag carrier has submitted an updated turnaround plan to the authorities, and will seek approval from creditors in a meeting around August or September, pending a green light from the court.
The plan will convert the entire principal of Thai Airways' debt from the Thai government, its main creditor, as well as a portion of the principal from financial institutions into equity. The carrier expects to receive 80 billion baht ($2.26 billion) of capital through the process, eliminating its capital deficiency.
Thai Airways also said it expects to resume trading on the stock market in 2025.
The airline had previously sought an additional 50 billion baht in order to continue its operations. The new plan halves this figure to 25 billion baht, as a result of layoffs and asset sales, as well as improved cash flow from increased passenger traffic.
Amid a recovery in global travel, the carrier's average daily passenger numbers increased sixfold from January to around 12,600 in June. The load factor, or the percentage of available seats filled by passengers, gained 40 points to 75%.
The figures are approaching pre-pandemic levels, and Thai Airways is on track for a faster turnaround than previously planned, the carrier's recovery plan administrator Piyasvasti Amranand told reporters Friday.
Thai Airways filed for bankruptcy protection in May 2020. Its original turnaround plan, approved by the court in June 2021, has a five-year deadline, with the option for a two-year extension.
Thai Airways aims to finish restructuring in 2024 as travel rebounds
Increased passenger traffic helps carrier halve capital needs under updated plan
Thai Airways International filed for bankruptcy protection in May 2020, during the early months of the coronavirus pandemic. (Photo by Akira Kodaka)
YOHEI MURAMATSU, Nikkei staff writerJuly 2, 2022 00:44 JST
BANGKOK -- Thai Airways International on Friday announced that it expects to complete its capital restructuring in 2024 through a debt-for-equity swap, as easing travel restrictions from COVID-19 lift its performance.
The embattled flag carrier has submitted an updated turnaround plan to the authorities, and will seek approval from creditors in a meeting around August or September, pending a green light from the court.
The plan will convert the entire principal of Thai Airways' debt from the Thai government, its main creditor, as well as a portion of the principal from financial institutions into equity. The carrier expects to receive 80 billion baht ($2.26 billion) of capital through the process, eliminating its capital deficiency.
Thai Airways also said it expects to resume trading on the stock market in 2025.
The airline had previously sought an additional 50 billion baht in order to continue its operations. The new plan halves this figure to 25 billion baht, as a result of layoffs and asset sales, as well as improved cash flow from increased passenger traffic.
Amid a recovery in global travel, the carrier's average daily passenger numbers increased sixfold from January to around 12,600 in June. The load factor, or the percentage of available seats filled by passengers, gained 40 points to 75%.
The figures are approaching pre-pandemic levels, and Thai Airways is on track for a faster turnaround than previously planned, the carrier's recovery plan administrator Piyasvasti Amranand told reporters Friday.
Thai Airways filed for bankruptcy protection in May 2020. Its original turnaround plan, approved by the court in June 2021, has a five-year deadline, with the option for a two-year extension.
-
- Similar Topics
- Replies
- Views
- Last post
-
- 0 Replies
- 850 Views
-
Last post by yong
-
- 0 Replies
- 1056 Views
-
Last post by yong
-
- 11 Replies
- 4683 Views
-
Last post by Cowshed Cowboy
-
- 1 Replies
- 814 Views
-
Last post by Kammekor
-
- 5 Replies
- 1599 Views
-
Last post by Doc67
-
- 5 Replies
- 3526 Views
-
Last post by Freightdog
-
- 4 Replies
- 2047 Views
-
Last post by Kammekor
Who is online
Users browsing this forum: crackheadyo, DavidMurphy, ExPenhMan, jaynewcastle, John Bingham, phuketrichard and 507 guests