Thai PM: Thai Airways won't go bankrupt but faces major rehabilitation

IndustriesAssociated Press

Thailand's coup-leader-turned-premier Prayuth Chan-ocha says debt-laden Thai Airways will not go bankrupt because the government is supporting it.

Prayuth said Monday the government was discussing steps to save Thai Airways from bankruptcy and was giving an initial green light to a rehabilitation plan proposed by the carrier.

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He said the national airline will have to cut expenses, increase revenue and drop unprofitable routes.

Prayuth said the airline will also have to sell planes that are currently surplus to requirements.

The Finance Ministry owns more than half of the airline's shares.

Thai Airways has been overhauling its operations and restructuring management after several consecutive quarters of losses. It recorded a profit in last year's third quarter due to a foreign exchange gain.