MIAMI – 91.56% of Thai Airways (TG) creditors approved the carrier’s restructuring proposal to have the means to reconcile its US$12.9bn debt.

However, a few creditors’ arguments delayed the court sessions, slowing the restoration process. As a result, the Thai flag carrier scheduled another meeting with its creditors with the goal of resolving any last-minute concerns and getting everyone on board towards a more constructive journey back to stability for the airline.

Thai Airways Airbus A350-941 taking off from Milan Malpensa Intl’ Airport (MXP). Photo: Andrea Ongaro @alphaoscaraviation

A Silver Lining for Thai Airways

As reports, the Court ultimately granted TG its consent for Tuesday’s huge debt restructure. This already authorized rehabilitation plan depends largely on debt extensions as well as debt-to-equity conversions, restricts the majority of job cuts to late interest payments.

Charge Financial Officer Chai Eamsiri noted during a news conference that the cancelation of lease arrangements for 16 planes has also led to their debts being settled.

Thai Airways Boeing 777-300 HS-TKZ. Photo: Milan Witham/Airways

Decades of Managerial, Financial Struggles

Prior to the pandemic, TG was experiencing financial problems. For the past decade, the once-profitable national carrier has suffered historic net losses. Corruption allegations have long dogged the airline, with several probes initiated against workers. The recently authorized repair plan might be what reveals the extent of the airline’s mismanagement.

The recovery plan, which is expected to run until 2025, might be TG’s final glimmer of hope for overcoming its decade-long financial challenges and putting the once-great airline back on a stable recovery path.

Featured image: Thai Airways Boeing 747 aircraft. Photo: Julian Herzog/Airways