Thai budget airline grounded over debts

A budget airline in Thailand has been grounded by the government after it failed to pay its debts.

Hundreds of passengers have been left stranded after Thai authorities suspended the operations of a budget carrier.

Business Air, a Thai low-cost charter airline, was ordered to suspend operations on Sunday due to unpaid debt owed to the Department of Civil Aviation.

The suspension stranded passengers stranded at the airline's hub in Incheon, South Korea and at Suvarnabhumi Airport in Thailand.

The Thai Ministry of Transport ordered that the company find other means of transporting the stranded passengers.

Business Air insisted on Facebook that it was closed unfairly by Thai authorities.

The airline incurred debt to the Department of Civil Aviation for its daily ground operations.

The Bangkok Post also reported that the company failed to return leased planes in December after the contract had expired.

According to the Department of Civil Aviation, Business Air was also unable to pay for plane maintenance, leaving it with one operable aircraft.


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Source: AAP


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