Thai Lost Bt5 Billion From Ny And La Routes; Fears Of Possible Takeover

[george]

THAI lost Bt5 billion from NY and LA routes; fears of possible takeover

BANGKOK: -- Thai Airways International, the national carrier, told a panel of legislators that it made a substantial loss of Bt5 billion as a result of inaugurating non-stop flights from Bangkok to New York and Los Angeles last year.

Apinan Sumanaseni, THAI president, also expressed concern to the National Legislative Assembly’s sub-committee on aviation Monday, about possible takeover bids, saying that there appeared to be unusually large buying orders of THAI shares by foreign investors in the stock market.

Somchai Meesane, spokesman for the assembly’s panel, told reporters that losses incurred from the two direct services to the US were due mainly to high fuel costs and fierce competition in the trans-Pacific segment. THAI had to enter into a price war and successively reduce air fares to attract business, the legislators were told.

The committee questioned whether it was commercially sound to fly Airbus A 340-500 and Airbus 340-600 aircrafts on the two loss-making routes as they were extremely energy inefficient.

Committee members also asked whether THAI management and board of directors at the time were under pressure from political appointees to purchase the aircrafts, Mr Somchai said, adding that all five of them were ordered during the previous administration.

The previous board of directors was chaired and peopled by many close associates of former Prime Minister Thaksin Shinawatra.

Mr Apinan refused to answer the question, according to the spokesman.

However, he did voice concerns about the prospect of the national flag carrier fallen into foreign hands as heavy buying of THAI shares by foreign investors was reported. THAI president was quoted as saying that currently foreigners held a combined 18.26 per cent of THAI stocks while the remaining 81.74 is owned by Thai investors.

Nevertheless, it remained unclear whether they were genuine investors or nominees of foreign companies, Mr Apinan was quoted as saying. He called on the law-makers to investigate the matter and find ways to prevent possible takeover bids by foreigners.

--TNA 2007-02-13

[gummy]

Perhaps an approach from SAS in in the offing? No not the Scandanavian airline but Shiniwatra Air Services. That way it could remain in Thai hands and render invaluable service to those wishing to take cash out of the Kingdom

[ovenman]

Apinan Sumanaseni, THAI president, also expressed concern to the National Legislative Assembly’s sub-committee on aviation Monday, about possible takeover bids, saying that there appeared to be unusually large buying orders of THAI shares by foreign investors in the stock market.

...

However, he did voice concerns about the prospect of the national flag carrier fallen into foreign hands as heavy buying of THAI shares by foreign investors was reported. THAI president was quoted as saying that currently foreigners held a combined 18.26 per cent of THAI stocks while the remaining 81.74 is owned by Thai investors.

OK, but aren't something like 70% of the shares of THAI actually held by the Thai government? How are the big, bad, evil foreigners going to pry controlling interest loose?

[lomatopo]

Curious, TG annoucned last week that they were increasing the frequency of the LAX flight to six dailies per week, and seven on the JFK route. Why would they do that if they are losing money on the routes?

AFAIK TG operates these routes today (5x/5x) with three (3) A340-500's. A 4th is due for delivery soon allowing the increase in frequencies. The A340-600's do not and cannot fly these routes.

Edited February 13, 2007 by lomatopo

[farangsay]

THAI lost Bt5 billion from NY and LA routes; fears of possible takeover

BANGKOK: -- Thai Airways International, the national carrier, told a panel of legislators that it made a substantial loss of Bt5 billion as a result of inaugurating non-stop flights from Bangkok to New York and Los Angeles last year.

Apinan Sumanaseni, THAI president, also expressed concern to the National Legislative Assembly’s sub-committee on aviation Monday, about possible takeover bids, saying that there appeared to be unusually large buying orders of THAI shares by foreign investors in the stock market.

Somchai Meesane, spokesman for the assembly’s panel, told reporters that losses incurred from the two direct services to the US were due mainly to high fuel costs and fierce competition in the trans-Pacific segment. THAI had to enter into a price war and successively reduce air fares to attract business, the legislators were told.

The committee questioned whether it was commercially sound to fly Airbus A 340-500 and Airbus 340-600 aircrafts on the two loss-making routes as they were extremely energy inefficient.

Committee members also asked whether THAI management and board of directors at the time were under pressure from political appointees to purchase the aircrafts, Mr Somchai said, adding that all five of them were ordered during the previous administration.

The previous board of directors was chaired and peopled by many close associates of former Prime Minister Thaksin Shinawatra.

Mr Apinan refused to answer the question, according to the spokesman.

However, he did voice concerns about the prospect of the national flag carrier fallen into foreign hands as heavy buying of THAI shares by foreign investors was reported. THAI president was quoted as saying that currently foreigners held a combined 18.26 per cent of THAI stocks while the remaining 81.74 is owned by Thai investors.

Nevertheless, it remained unclear whether they were genuine investors or nominees of foreign companies, Mr Apinan was quoted as saying. He called on the law-makers to investigate the matter and find ways to prevent possible takeover bids by foreigners.

--TNA 2007-02-13

So

a The 49% rule doesn't apply to listed companies.

b This is BS to try and divert attention from incompetence

Edited February 13, 2007 by farangsay