Thai Airways International’s restructuring plan approved hinh anh 1A Thai Airways plane model (Source: AFP)

Bangkok (VNA) – The Thai Cabinet on May 19 approved a plan to restructure Thai Airways International (THAI) following the Transport Ministry's proposal that it must undergo rehabilitation under the Bankruptcy Act.

Prime Minister Prayut Chan-o-cha said that the Government supports THAI’s efforts to continue operating, but refused to give details of the rehab plan.

"The Government has reviewed all dimensions. We have decided to petition for restructuring and not let Thai Airways go bankrupt. The airline will continue to operate," he told reporters at a news briefing.

The Cabinet has reportedly approved a plan by the Finance Ministry, which is the major shareholder in THAI, to sell 3 percent of its shares in the carrier to the second largest shareholder, the Vayupak Fund.

The ministry currently holds 51.03 percent of THAI shares, while the Vayupak Fund owns around 15 percent, and the Government Savings Bank (GSB) holds around 2.1 percent.

Once among the state-owned enterprises gaining profits in Thailand, THAI is now in debt of nearly 300 billion THB (nearly 10 billion USD). The national flag carrier reported a net loss of 2.11 billion THB in 2017, and this figure increased to 11.6 billion THB in 2018 and 12 billion THB in 2019. Due to the impact of the COVID-19 pandemic, THAI has been forced to cease operations until the end of May./.