Thai Airways union, creditors push back against proposed govt control
The Thai Airways labour union and the airline’s creditors have voiced strong opposition to a proposed amendment that seeks to add two government officials as its business rehabilitation plan administrators.
According to the Finance Ministry’s amendment, Panya Chupanich, director-general of the Transport Ministry’s Office of Transport and Traffic Policy and Planning, and Polchak Nimwatana, deputy director of the Finance Ministry’s State Enterprise Policy Office, will be appointed as additional plan administrators.
The union and creditors are concerned that this increased government involvement could lead to political interference, especially in decisions on aircraft procurement, potentially comprising the airline’s independence and global competitiveness.
Asst Prof Dr Pracha Koonnathamdee, a member of the creditor committee, raised concerns about the negative impact that heightened government control could have on the airline’s financial health and operational efficiency. He stressed the importance of good governance and warned against excessive intervention.
A creditors’ meeting scheduled on Friday will be pivotal in determining Thai Airways’ future direction. The union is urging creditors to reject the proposed amendment to safeguard the airline’s long-term sustainability.
Thai Airways recently filed two additional requests to amend the rehabilitation plan: one to clarify dividend payment terms and another to accommodate the Finance Ministry’s proposal for more administrators.
Though the ministry cites the need for expertise and government support, the union and creditors remain sceptical.
The outcome of Friday’s meeting will be crucial in shaping Thai Airways’ ability to emerge from rehabilitation as a viable and competitive airline.
THAI filed for bankruptcy protection in late 2019 after reporting massive debts of 245 billion baht. In May 2020, the Cabinet gave the rehabilitation plan the green light under the Bankruptcy Act, and this was later approved by the Central Bankruptcy Court in June 2021.
After meeting the revenue target this year, the airline is preparing to issue rights offerings to help with the business rehabilitation process.
