How will Thai Airways deal with customers or members of Royal Orchid Plus (ROP)?
Thai Airways recognizes the importance of ROP customers, and its intention is to let customers use miles as usual. However, due to some legal limitations, since 2 June 2020, the Company has had to suspend certain privileges, such as the ticket rewards and the upgrade rewards for Star Alliance airlines, and the hotel rewards.
However, members will still be able to redeem miles for ticket rewards and upgrade rewards for Thai Airways, and ticket rewards for Thai Smile, once Thai Airways and Thai Smile are back in service.
If ROP members have redeemed hotel rewards, certain types of lifestyle rewards, and ticket rewards and upgrade rewards for Star Alliance airlines, but have not used the services, such the member can claim back the miles and the redeeming fee will be waived. Miles that expire will be extended to 31 December 2020.
However, currently the Company cannot refund tax and fees for ticket rewards and upgrade rewards for Star Alliance airlines, due to the legal limitations. The Company is taking actions to urgently resolve or alleviate these limitations.
What are the steps and procedures for rehabilitation?
There are three main phases of rehabilitation procedures for Thai Airways.
Phase 1 From 26 May (or the date that the Company filed a petition for rehabilitation) to 17 August 2020 (or the date that the court hears the petition), Thai Airways will get an automatic stay. The reason that the term "automatic stay" is used is because the results of an automatic stay are that the creditors may not bring lawsuits and execute judgements against the asset of Thai Airways, and that Thai Airways is forbidden from incurring or repaying debts, except debts that are necessary for the ordinary course of business. This will be enforced until the rehabilitation litigation is completed.
In the hearing of the rehabilitation petition by the Central Bankruptcy Court, on principle, there are three issues to be considered: (1) the status of assets, debts, and debt repayment ability; (2) whether there is a reason to reorganize Thai Airways; and (3) whether the persons nominated by Thai Airways should be the planners. If the court agrees with the three elements, the court will order the rehabilitation of Thai Airways and appoint the nominated planners. Then the rehabilitation process will move to phase 2.
Phase 2 is the period from the date that the court orders the rehabilitation and appoints the planners until the plan is completed and approved by the court. This period can be six months to one year, or sooner, depending on many factors including the cooperation and support of Thai Airways' creditors in approving of the planners nominated by the Company; and approving of rehabilitation plan created by the planners.
Phase 3 are the actions in accordance with the rehabilitation plan as approved by the debtors and the Central Bankruptcy Court. The responsible person for this is the plan administrator(s) appointed by the court. The actions must be completed within five years. The time period can be extended for up to one year and can be extended twice. That is, the maximum period is seven years from the date that the court approved the plan.
The rehabilitation will be completed after the actions under the plan are completed such as converting liabilities to capital, partial debt payment, or decreasing/increasing the Company's registered capital.
How long does it take for classification of creditors? Will the creditors be notified? How important is the creditors' cooperation?
Creditor classification is in phase 2, as answered in Question 2. Creditor classification is the responsibility of the planners appointed by the court. According to the law, the planners must complete the plan and present it to the meeting of creditors within three months from the date of the order appointing the planners. The time period can be extended for one month at a time, but only twice. Therefore, the total time period is five months. The creditors will see the rehabilitation plan and creditor classification. The cooperation of the creditors is extremely important in that the creditors must resolve whether they accept the rehabilitation plan.
Based on Thai Airways' current cash and liquidity, how long can it suspend its services? What are their cost management methods
During the rehabilitation, will Thai Airways receive fund from the Ministry of Finance? Will it be able to find funding? Who are Thai Airways' partners to create joint ventures?
Thai Airways is no longer a state enterprise. Therefore, the Ministry of Finance cannot directly provide financial support or a loan guarantee. However, during this time Thai Airways can still request loans from financial institutions with the approval of the Central Bankruptcy Court. Such the creditor will not have any preferential right to request repayment. That is, it does not have any privilege over other creditors in the rehabilitation process. Please note that future funding depends on the necessity to act according to the rehabilitation plan. The need for funding, funding methods, and finding of business partners for joint ventures will be up to the planners' consideration. The joint venture must create synergy with Thai Airways' business and related businesses. It must also provide the best interest for Thai Airways.
If a passenger wishes to ask for a refund for a purchased ticket, what is Thai Airways' policy? Will Thai Airways give full refunds?
Ticket refunding or rescheduling are the customers' choices as per the conditions of issuing tickets. The Company does not have a policy to suspend the customers' right to request a refund and is accepting the customers' refund requests. However, currently the Company cannot process any refund to the customers due to some legal limitations. The Company greatly apologizes for this. However, the Company remains committed to extending the utmost attention and care to all customers who ask for refunds under the rehabilitation procedures and will notify customers of their rights.
Kindly note that the Company cannot announce its exact policy because the Company's rehabilitation plan will be prepared by the planners appointed by the court. The Company is not the one making the plan. Any policy announcement must be within the Company's authority.
Will Thai Airways' aircraft be forfeit? Why does Thai Airways not file for Chapter 11 to a court in the US for a worldwide automatic stay?
Currently the legal counselors are negotiating with creditors who lease aircrafts for repayment relaxation, in order for Thai Airways to still be able to use these aircrafts. Meanwhile, the legal counselors are also asking courts outside Thailand to provide "Recognition of the Company's Business Rehabilitation Proceedings in Thailand" in order to protect Thai Airways' assets in different counties. Currently no aircraft are forfeit.
There is no need to file for Chapter 11 in the US courts at the moment because Thai Airways' foreign debt negotiation is going well. However, the legal counselors have not ruled out filing for Chapter 11.
Has any aircraft lessor terminated its contract?
Will Thai Airways reduce the size of its organization? If the answer is yes, please provide the details about the non-income departments to be canceled and departments to be downsized. Will departments with overlapping responsibilities be adapted and merged together?
The adjustment of the Company's organization will be aligned with the rehabilitation plan, which will be considered by the planners. However, the adjustment of the Company's organization also depends on other strategies and factors, such as competition in the industry or the future aircraft plan, for the best interest of passengers and Thai Airways.
What is the company´s business?
Thai Airways International Public Company Limited is the national carrier of the Kingdom of Thailand. It operates domestic, regional and intercontinental air transport services with, its home base at Suvarnabhumi Airport.
What is the stock ticker and on which bourse are shares traded?
THAI´s shares are traded using the ticker "THAI" and its shares are traded only on the Stock Exchange of Thailand
What is THAI´s dividend policy?
Which channels can shareholders, investors and stakeholders access THAI´s information?
Corporate website (http://www.thaiairways.com/about-thai/company-profile/en/company-profile.htm)
IR Webpage (http://www.thaiairways.com/about-thai/investor-relations/en/investor.html)
The Stock Exchange of Thailand (http://www.set.or.th/th/index.html)
What is the purpose for THAI to set up Wingspan?
Why THAI launched THAI Smile, although THAI has Nok Air as its subsidiary?
How does THAI manage against fuel price fluctuation?
What is Thai Airways policy on Good Corporate Governance?
THAI is fully committed to the principles of good corporate governance to ensure long-term sustainable growth for the company.
THAI´s Good Corporate Governance Principles are :
- Creation of Long Term Value
- Ensuring Transparency
- Equitable Treatment
Who is THAI´s Registered Office
CONTACT DIRECT TO:
Thailand Securities Depository Co., Ltd. 93 The Stock Exchange of Thailand Building, Ratchadaphisek Road, Dindaeng, Dindaeng, Bangkok 10400, Thailand Call center: 02-009-9999 E-mail: TSDCallCenter@set.or.th Website: http://www.tsd.co.th