Thailand’s air regulator has grounded Asian Air following moves by creditors to freeze its assets.
The Civil Aviation Authority of Thailand (CAAT) said the five-year-old carrier had unpaid debts and is being sued by its maintenance contractor.
CAAT grounded the airline a little over a week after it stopped one of its flights from taking off after it received an order from the Central Bankruptcy Court.
The full-service airline said it was exploring all avenues to ‘resume its operations as soon as possible.’
Asian Air co-founder David Srichai-udom told the Bangkok Post it had recently reduced outstanding debt from THB100 million to THB10 million.
Due to the legal action, it could be several months before it will be permitted to resume operations, Srichai-udom said.
According to official financial documents, the airline posted losses of THB150.4 million in 2014.
