Thailand based LCC – low-cost carrier – Nok Air has received a government thumbs up to work towards rehabilitating its failing business after suffering devastating losses as a direct cause of the COVID-19 pandemic.
The business plan the company will work through to help save the popular airline will be finalised in the next two months.
“Even though Nok Air can reduce accumulative losses, the airline has suffered from the outbreak, which has grounded our fleet for months,” Kasemsant Weerakun, Nok Air’s director said on announcing the news.
“The (Thai) court has the jurisdiction to rehabilitate the company’s business. This the only path for us.”
At the end of July, the company’s 26 billion baht debt, led it to go into administration and file a ‘rehabilitation petition’ with a Thai court in a bid to use its 23 billion baht of assets, aircraft included, to help work towards a rescue plan.
Five individuals including Nok Air chief executive Wutthiphum Jurangkool, and an outside agency are being charged with drawing up the full rehabilitation plan.