With its long-standing financial problems, the Thai government has made a request for rehabilitation plan for national carrier Thai Airways for a possible rescue package.
As it has been reported to be seeking a loan of around THB 58.1 billion from Thailand's Ministry of Finance, the government is asking that the proposal must address 23 risk areas stated by the airline, a plan to mitigate the effects of the COVID-19 pandemic, and to manage its financial situation.
Regarding the deadline, Thai Transport Minister Saksayam Chidchob was quoted by Reuters stating: “If (the plan) is not finished in May, then we cannot proceed.”
While it has set the new deadline, Chidchob was quoted on Reuters adding that while not saying anything specific, Thai Airways is actively collaborating with the Thai Transport Ministry's policy office for the rehabilitation plan.
With a rising sentiment against backing the airline further as Thailand continues its efforts to contain the spread of COVID-19, Chidchob stated: “The (Thai Airways) plan needs to be clear because the money is from public taxes … especially when the country needs to use budget for managing the virus and assisting the public.”
Due to the COVID-19 pandemic, Thai Airways suspended its operations on March 25, with plans to resume service on May 31.
In 2019, the airline recorded a loss of around THB 12.04 billion.