THAI Airways has confirmed that its bankruptcy proceedings (TD 19 May) mean it is unable to issue any refunds for unused tickets, due to legal obligations which “prevent it from disbursing funds at this point in time”.
The airline’s bankruptcy petition was accepted by a Bangkok court last week, meaning existing customers have now become creditors of the company.
The lodgement said TG deserved to be saved because of its “sound business foundations, years of experience, the profit-generating potential of its business units, and its brand value”.
Court documents confirmed that TG currently owes refunds worth THB24 billion (A$1.1b), with the company now saying it expects to refund customers within six months, once its restructuring is finalised.
However customers with cancelled bookings are also now able to rebook without additional fees when flights resume, or take a future travel credit.
The airline’s international flights are currently grounded due to the COVID-19 pandemic, with plans to resume services from 01 Jul subject to the easing of restrictions in Thailand & abroad.
TG owes about A$11.5 billion in total, with the official rehabilitation process expected to involve restructuring of debt, a review of the airline’s global network and deep cost cuts.
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Source: traveldaily