Loss-making Thai Airways has been allowed to restructure its money owed to maintain its planes within the sky.
The struggling airline had beforehand requested for a authorities bail-out by way of a 58.1bn baht ($1.81bn, £1.48bn) mortgage.
As a substitute, Thai officers instructed the airline to give you a restructuring plan to keep away from going bankrupt.
The worldwide airline trade is going through a extreme monetary disaster on account of coronavirus journey restrictions with a rising record of casualties.
Thai Airways was below monetary stress even earlier than the coronavirus outbreak induced passenger numbers to plummet. In 2019, it reported losses of 12bn baht.
However it has strongly denied rumours that it was trying to file for chapter. In a press release on its web site, Thai Airways stated: “it has no intention to file for chapter, responding to rumours appeared within the information and on-line”.
The airline is 51% owned by the Thai authorities and overseen by its State Enterprise Coverage Committee (SEPC).
After a cupboard assembly on Tuesday, Thailand’s Prime Minister, Prayuth Chan-ocha, stated: “The federal government has reviewed all dimensions… we have now determined to petition for restructuring and never let Thai Airways go bankrupt. The airline will proceed to function.”
The earlier rescue package deal put ahead by the airline concerned a authorities assured mortgage backed by the finance ministry.
Thai Airways has round 80 planes and employs 22,000 folks. It stated this week it will not resume worldwide flights till not less than 30 June.
The Worldwide Air Transport Affiliation has stated air journey is just not anticipated to return to regular till 2023, placing additional stress on airways globally.
Avianca, Colombia’s privately owned nationwide flag service, filed for Chapter 11 chapter within the US earlier this month, whereas Virgin Australia, the second-biggest airline in Australia, entered administration in April after it did not safe a authorities bailout.