Thai Airways - Lessons for Aircraft Lessors and Financiers
On 15 June 2021, the Central Bankruptcy Court approved the rehabilitation plan for Thai Airways International PCL (“THAI”), marking a significant milestone for one of the largest insolvency proceedings in Thailand. A number of factors underlined the unprecedented nature of the THAI restructuring. This was the first-time rehabilitation proceedings were sought by a national flag-carrying airline in which the Thai government controlled a substantial portion of the equity. Debt claims amounting to THB 400 billion, based on over 13,000 debt repayment applications, combined with the ongoing COVID-19 pandemic underlined the magnitude and challenges of the restructuring. The market for airlines and aircraft in Thailand remains precarious in light of the pandemic but, looking forward, THAI’s rehabilitation provides lessors and financiers with important lessons not only for the aviation sector but financings generally.