THAI Airways Goes Through Bankruptcy Process and Laid Off 6000 Staffs2 min read
THAI Airways Goes Through Bankruptcy Process and Laid Off 6000 Staffs
You probably read about THAI Airways going bankrupt for these few days and they will enter a bankruptcy procedure by the Thai government. THAI Airways is one of our preferred airlines as overall they offer good service and tasty in-flight meals. We usually flew to Thailand with THAI Airways and we flew with them to Nagoya Japan last year.
As reported by The Nation Thailand, Thai Airways (THAI) will have to dismiss more than 6,000 employees after entering a bankruptcy procedure and a debt moratorium of Bt200 billion, the government said on Thursday.
The Cabinet decided to push THAI into a bankruptcy procedure under the Bankruptcy Act BE2483 (AD1940) and ordered the Ministry of Finance to sell its majority stake in the airline.THAI will stop repaying all debt and start from scratch, the government said. According to the size of its debt, 30 per cent of its over 20,000 employees, or over 6,000 people, will have to be dismissed. They will receive a 10-month compensation as per the labour law.The rehabilitation of the airline has to be approved by the creditors and it is likely to take at least one year, sources said.
For your information, Japan Airlines go thru bankruptcy ten years ago. Japan Airlines manage to turn their business in two years thanks to reform and public funds.
However, things are different this time with COVID-19 and we hope all the best with THAI Airways and will be looking forward to fly with them in the near future.