Thai Airways challenging claims of over US$7 billion

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Thai Airways is questioning claims from the lessors of some of its aircraft and Rolls-Royce, who service some of their aircraft engines. The airline is currently in the middle of lengthy bankruptcy proceedings as the court wades through thousands of creditor claims.

The lessor and maintenance claims total over $US$7 billion. Thai Airways says that it’s not liable for the payments as they relate to expenses after it went into bankruptcy proceedings and therefore is afforded protection from the Bangkok Court.

 According to Bangkok Post, the national airline is challenging US$6.3 billion claimed by 48 aircraft leasing companies and another 33 billion baht Rolls-Royce claims it is owed for jet engine maintenance services.

The disputed amounts total more than half of Thai Airways’ total debt liability, some 410 billion baht. Unless the airline is able to reach some sort of agreement with the leasing companies or Rolls Royce, it is likely that the airline will be formally declared bankrupt, even if the court accepts the airlines’ remainder of the recovery plan.

Even to get to the middle of 2021, Thai Airways will need to find 30 billion baht just to get its fleet back into the skies and to resume a revised flight schedule.

Source: The Thaiger

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