Thailand to pump 260 million USD into Thai Airways

Illustrative image (Photo: Internet)

Bangkok (VNA) - The Finance Ministry of Thailand plans to pump 10 billion baht (260 million USD) into Thai Airways International (THAI) to keep its shareholding in the company from dipping below 40%, according to the State Enterprise Policy Office (Sepo).

Sepo Director General Pantip Sripimol said the ministry has decided to sell some of the shares in other state enterprises to raise the necessary funds. However, no decision has been made as to what shares in which state enterprises the ministry will offload. The final say will be made by policymakers.

As a matter of principle, the fund earmarked for recapitalisation will not come from the central budget which the government allocates to the ministry.

The move comes after the Central Bankruptcy Court approved THAI's revised business reorganisation plan, setting in motion its full financial restructuring process. The debt-ridden flag carrier submitted the revised plan following a better-than-expected recovery from the most financially trying period in its history.

The company has also undertaken drastic cost-cutting measures, including retrenchment of its workforce, which has resulted in cost savings./.