webfact Posted August 1, 2019 Share Posted August 1, 2019 Thai Smile aims to raise Bt5 bn to cover its debts By THE NATION Charita Leelayuth, acting chief executive officer of Thai Smile, said the airline plans to reshuffle its financial structure in the third and fourth quarters so it is in line with the new IFRS9 financial instruments, which will go into effect next year. It will also raise capital to repay debts to its parent company, Thai Airways International (THAI). Thai Smile is currently burdened with Bt8 billion in accumulated losses as well as Bt6 billion in capital losses. “We need to repay our debts, otherwise THAI’s loans will go down to zero under the new accounting standard. So, we need to raise about Bt5 billion in capital by the end of this year. With this amount, our capital losses will also fall,” she said. Charita added that the plan of raising new capital will be submitted to Thai Smile’s board for approval before it is reviewed by THAI’s board. The airline is currently working on its five-year business plan, she said, adding that Thai Smile was also waiting for clarity on THAI’s plan to improve its flying routes in compliance with Thai Smile’s plans. “Under our five-year plan, Thai Smile will have to start making profits in 2020. For the first six months of this year, we made a small profit thanks to support from THAI, which has been helping sell our tickets. Though our profit has not exceeded Bt100 million over the first half, our cabin factor has risen to 80-85 per cent, from 60 to 70 per cent previously. The number of passengers has also risen to about 360,000 per month and should reach over 4 million by yearend,” she said. Source: https://www.nationthailand.com/business/30374082 -- © Copyright The Nation Thailand 2019-08-02 Follow Thaivisa on LINE for breaking Thailand news and visa info Link to comment Share on other sites More sharing options...
Popular Post legend49 Posted August 1, 2019 Popular Post Share Posted August 1, 2019 Nice airline lots better than its big brother. 4 Link to comment Share on other sites More sharing options...
Popular Post jaiyen Posted August 2, 2019 Popular Post Share Posted August 2, 2019 A good airline but sometimes too expensive compared to low budget carriers. We fly with them when we can. When we come from Perth their is a perfect connection to Chiang Mai 2 hours after arrival at BKK and we go through Immigration at the domestic counters thereby avoiding the huge queues ! 2 1 Link to comment Share on other sites More sharing options...
smutcakes Posted August 2, 2019 Share Posted August 2, 2019 Knock knock, is that Mr. Taxpayer? 2 Link to comment Share on other sites More sharing options...
Popular Post fxe1200 Posted August 2, 2019 Popular Post Share Posted August 2, 2019 How can an airline with a monopoly to serve from Suvarnabhumi and the highest prices can possibly accumulate 8 billion in losses plus 6 billion in capital losses? Very suspicious. But well, Like mother (THAI), like daughter. 3 Link to comment Share on other sites More sharing options...
justin case Posted August 2, 2019 Share Posted August 2, 2019 thai smile, sometimes cheaper than air asia and you get meals and water ... 2 Link to comment Share on other sites More sharing options...
Bangkok Barry Posted August 2, 2019 Share Posted August 2, 2019 18 minutes ago, justin case said: thai smile, sometimes cheaper than air asia and you get meals and water ... Indeed. Last time I flew Kohn Kaen to Bangkok and back they were cheaper on both legs than Nok, Air Asia and Thai Lion. But that isn't the norm. Usually they cost more. 2 Link to comment Share on other sites More sharing options...
Srikcir Posted August 2, 2019 Share Posted August 2, 2019 7 hours ago, webfact said: It will also raise capital to repay debts to its parent company, Thai Airways International (THAI) THAI aka majority State-owned enterprise that currently has a Bt100 billion debt from ten years of losses. Why not another Bt14 billion to Thai Smile? It's only Thai taxpayer money. 7 hours ago, webfact said: “We need to repay our debts, otherwise THAI’s loans will go down to zero under the new accounting standard. I'm not sure what this means - THAI's existing loans to Thai Smile will be deemed "nonperforming" and trigger a complete write-off by THAI? As majority of THAI's losses are covered by the Thai government that might be called "juggling the books" rather than "balancing the books." This is a further example of the urgency of the Thai government to dispose of its state-owned enterprises, especially with the current high-valued baht. Leave survival of THAI and Thai Smile to private enterprise. 2 Link to comment Share on other sites More sharing options...
Sydebolle Posted August 2, 2019 Share Posted August 2, 2019 Debt to equity? Link to comment Share on other sites More sharing options...
Elfin Posted August 3, 2019 Share Posted August 3, 2019 I recently flew Thai Smile for the 1st time BKK-CNX and had the most delicious mashed potato and salmon cake en route. I got a rare 1/2 price return ticket from PKG in conjunction with Thai Airways on their new A350 which was such a good flight with this comfortable plane (good leg room) combined with excellent service. I had not flown THAI for many years due to pricing but I am looking forward to my return flight with Thai Smile and THAI! Link to comment Share on other sites More sharing options...
Fex Bluse Posted August 3, 2019 Share Posted August 3, 2019 On 8/2/2019 at 10:54 AM, fxe1200 said: How can an airline with a monopoly to serve from Suvarnabhumi and the highest prices can possibly accumulate 8 billion in losses plus 6 billion in capital losses? Very suspicious. But well, Like mother (THAI), like daughter. Maibenrai Economics We are 'sa-pe-shial' (special) na. Thai 'sa-tai' (style) na. Thailand 'velly goose' (very good) ???? Link to comment Share on other sites More sharing options...
sirineou Posted August 3, 2019 Share Posted August 3, 2019 When we fly into BKK we always connect with Thai Smile to our final destination at KKC always get the upgraded ticket, don't know what it is called wife buys the tickets, which provides as with passes for the lounge, sitting at the front of the plane (not sure if the seats are better) and I guess better service, tough it does not really matter since it is such a short flight. It really doesn't cost much more, cheap enough not to even bother asking the wife how much it was. Their lounge is great (free wifi, food, drink).Great airline, good service,clean modern planes frequent flights. I saw a documentary about Air Asia and their safety record, I would not fly them unless I did not have another choice. https://www.youtube.com/watch?v=qSZ-R5HdPQU Link to comment Share on other sites More sharing options...
elliss Posted August 3, 2019 Share Posted August 3, 2019 (edited) On 8/2/2019 at 7:52 AM, jaiyen said: A good airline but sometimes too expensive compared to low budget carriers. We fly with them when we can. When we come from Perth their is a perfect connection to Chiang Mai 2 hours after arrival at BKK and we go through Immigration at the domestic counters thereby avoiding the huge queues ! Sorry mate , i have lost you on this one . From my experience on arrivals at BKK, there is only a international immi on arrival . Always have the huge queues . How can you go through immi at domestic counters .? Edited August 3, 2019 by elliss 1 Link to comment Share on other sites More sharing options...
GinBoy2 Posted August 3, 2019 Share Posted August 3, 2019 On 8/1/2019 at 10:31 PM, Bangkok Barry said: Indeed. Last time I flew Kohn Kaen to Bangkok and back they were cheaper on both legs than Nok, Air Asia and Thai Lion. But that isn't the norm. Usually they cost more. I also have loved Thai Smile KKC-BKK. But a ฿1000 ticket doesn't even come close to covering cost, even at 100% load capacity The biggest cost driver for any airline is fuel, regardless of whether they give you a cheapo box meal on that 40 minute flight, and that doesn't change. There is a reason Air Asia, Lion Air and all the true LCC's nickel and dime you, is because it's a brutal low margin business, where you invest $m's in capital cost to make pennies in profit TG and it's affiliates haven't learned that yet Link to comment Share on other sites More sharing options...
Creasy Posted August 3, 2019 Share Posted August 3, 2019 On 8/2/2019 at 10:52 AM, jaiyen said: A good airline but sometimes too expensive compared to low budget carriers. We fly with them when we can. When we come from Perth their is a perfect connection to Chiang Mai 2 hours after arrival at BKK and we go through Immigration at the domestic counters thereby avoiding the huge queues ! Can you please explain where this immigration desk is that connects domestic fights ? We fly from Oz to BKK then onto KCC and I have never heard of it. ThaiSmile plus are the seats another poster mentioned, with the extras legroom and lounge access and they aren’t much more expensive. 1 Link to comment Share on other sites More sharing options...
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