Asian Air Operations Suspended Due to Alleged Unpaid Debts

Regional carrier Asian Air grounded by Thai authorities after bankruptcy court moves to seize aircraft.

Regional airline Asian Air will no longer fly commercial passengers out of Thailand after the Civil Aviation Authority of Thailand (CAAT) moved to suspend the airline’s service. The Bangkok Post reports Asian Air will be grounded immediately after a bankruptcy court ordered the aviation authority to seize assets during a debt dispute.

As a result, regularly scheduled flights aboard the carrier have been canceled and could be held in limbo for several months. Although at least two aircraft belonging to the five-year-old airline were stopped prior to departure in January, the move by the CAAT marks the first time the airline’s operations have been put to a full stop.

The stoppage and seizure of the aircraft comes at the order of Thailand’s Central Bankruptcy Court, which is hearing a case between the airline and service provider Cargo Aircraft Management. The service provider is pursuing a lawsuit against Asian Air over alleged unpaid debts.

If money is owed to Cargo Aircraft Management, officials at Asian Air are not quick to acknowledge them. In a statement to the Bangkok Post, Asian Air co-owner David Srichai-udom said the airline decreased their overall debt from around $2.8 million to a fraction of that amount. In addition, executives from the airline said they will explore their options to resume operations “as soon as possible.”

However, the pathway to resuming service may still be far extended for the troubled carrier. According to the CAAT, the airline must prove they are financially viable in order to continue operating in Thailand. If they cannot prove the money is there to successfully run the business, then the aviation ministry has the right to pull their operating license.

This is not the first time Asian Air has faced operating problems. In 2015, a scheduled flight from Thailand to Sapporo, Japan was grounded prior to takeoff, as the airline did not have permission from the Japanese Civil Aviation Bureau.

[Photo: Asian Air Facebook]