Thai Airways International is reported to be seeking $2.2 billion in state aid to avoid collapse.
The flag carrier, which suspended international flights a month ago until May 30 due to the coronavirus pandemic. This involved the grounding of 69 of the airline’s 82 aircraft.
The Thai government was expected to agree a capital injection plan for the struggling airline this week.
Details have yet to emerge but transport minister Saksayam Chidchob revealed a week ago that a committee including the finance and transport ministries had been formed to oversee Thai Airways over the next three to six months.
The rescue plan would give the airline breathing space potentially until October as Thailand plots a path to recovery after vital tourism revenue dried as Covid-19 hit.
The government bailout talks are believed to involve a 70 billion baht bridging loan with the carrier being down to its last 10 billion baht ($307 million).
A Thai government cabinet meeting could be held as early as Tuesday (April 28) to determine the fate of the airline, according to Nikkei Asian Review.
The last public comment from the airline came on April 10 when it said: “the company would like to clarify that at present the rehabilitation plan is currently underway to present [to] relevant government agencies and the company has not yet discussed any specific strategic partners.”
The airline’s financing and accounting executive vice president Nattapong Samit-Ampaipisarn said on March 30: “Thai continues to explore measures to shore up its liquidity during this unprecedented disruption to global air travel.”
The struggles emerged in a week that both Virgin Australia and Air Mauritius were placed into voluntary administration in the face of global travel restrictions imposed to try to contain the spread of the virus.