Cash-strapped national carrier Thai Airways is in the last chance saloon.
Thailand’s PM issued a stark warning to the airline’s management not to squander its latest bailout.
"This is the last time that Thai Airways will receive support from the government. If the situation worsens, there will be a complete structural overhaul of the airline," General Prayut Chan-o-cha said.
The Finance Ministry agreed to a THB54 billion (US$1.8 billion) bailout and up to THB80 billion in a recovery loan.
Prayut said the airline ‘must achieve 10 goals and not waste the government-backed loan.’
Conditions form part of a cost-cutting restructuring plan which will lead to a leaner airline business.
Its fleet size will be gradually reduced from 103 to 84 planes by 2024, and loss-making routes and possibly staff numbers will be cut.
The national carrier has been in financial trouble long before the Covid-19 outbreak started and has been making a loss for the past few years.
The bailout is still awaiting full cabinet approval.
