THAI president adamant national airline has no liquidity crunch

By THE NATION

 

THAI president Sumeth Damrongchaitham

 

The national flagship carrier Thai Airways International (THAI) has denied reports that it is experiencing a liquidity crunch.

 

THAI president Sumeth Damrongchaitham said on October 4 that THAI has sufficient cash flow for present and future operations. He denied reports that THAI is in trouble and experiencing a liquidity shortage.

 

Sumeth added that the management has given top priority to maintaining liquidity and has drawn up a loans plan on the most prudential basis.

 

As of the end of June this year, THAI’s revolving credit line accounted for 13.4 per cent of the total projected revenue for the year. This indicated that the carrier still has adequate cash reserve in hand, he said.

 

He also assured customers, trading partners, shareholders, related parties and the general public that THAI is not in a liquidity crunch.

 

This week Deputy Transport Minister Thaworn Senniam said he will hold a meeting with THAI management on October 10 to seek ways to clear the national carrier’s accumulated losses.

 

The minister said the meeting will discuss THAI’s existing rehabilitation plan, which he does not believe will help the carrier succeed in a turnaround. 

 

Thaworn said the rehabilitation plan had been implemented for a while now, but there was still no sign of the losses easing.

 

He believes THAI will first have to revise the rehabilitation plan within three months.

 

THAI directors on September 24 asked executives of the national carrier to review plans to procure 38 more aircraft worth a combined Bt156 billion.

 

The governing board instead cited a “fast-changing situation” in asking for a fresh plan within the next six months.

 

Recently Sumeth said that THAI operations will not be affected by its board’s demand for the review of plans to procure the new aircraft.

 

According to the THAI second-quarter 2019 filing to the Stock Exchange of Thailand, the airline and its subsidiaries had total revenue of Bt42.509 billion, a 10 per cent decrease year on year.

 

For the second quarter THAI and its subsidiaries had one-time expenses that included impairment loss of assets and aircraft in the amount of Bt172 million. The gain on foreign currency exchange was Bt522 million, mainly from balance sheet revaluation. Consequently, THAI and its subsidiaries reported the net loss of Bt6.878 billion, compared to the loss of Bt3.086 billion over the same period last year.

 

Source: https://www.nationthailand.com/business/30377063

 

-- © Copyright The Nation Thailand 2019-10-04

Follow Thaivisa on LINE for breaking Thailand news and visa info

After reading that article I feel confident that Thai Airways has a liquidity crunch problem.

The Thai face saving begins. 

 

They ALWAYS post face saving articles immediately after a face losing one. 

 

Like kids on a playground. 

18 minutes ago, webfact said:

As of the end of June this year, THAI’s revolving credit line accounted for 13.4 per cent of the total projected revenue for the year.

So, that's 13.4% of a projected loss of 10 billion baht for the year as reported in another thread just THIS MORNING? 

23 minutes ago, webfact said:

THAI president adamant national airline has no liquidity crunch

Of course it has no liquidity crunch. The loss only went from 3.1 billion baht last year to 6.9 billion baht this year. No worries folks, we're a smooth run operation!

It is 51% owned by the Thai Ministry of Finance which means that parent company will be obliged to pump some more money into the the feeding trough to keep the big snouts in the lifestyle they have been accustomed to. Of course the other 49% filthy rich friends of the government shareholders won't be expected to do likewise.

Big potential loss of face for the nation at stake here. 

Out with the old, in with the new!

 

 

Who to believe?

 

Deputy Transport Minister Thaworn Senniam will convene a meeting with Thai Airways International (THAI) on October 10 to look for ways to clear the national carrier’s accumulated losses.

 

The minister, who will be meeting the airline’s chairman Ekniti Nitithanprapas and some top executives, said they will discuss the THAI’s existing rehabilitation plan, which he doesn’t believe will help the carrier make a turnaround. 

 

Thaworn said this rehabilitation plan has been implemented for a while now, but there is still no sign of the losses easing. 

 

In fact, he said, he is worried THAI will experience a loss of Bt10 billion this year. 

This airline is a disaster. Its losses far outstrip its profits over the last decade. If it were a racehorse, it would have been shot by now to put it out of its misery. 

The sensible business thing to do would be to bring in a foreign airline operations expert. Of course his first task would to cut the free flights to executives, their families and friends. Not a popular move. Next he would get rid of the overpopulated staff. Again not popular. Just necessary good business practice.

 

Yet the Thais will resist this as someone is knocking over their rice bowl.

16 hours ago, FarFlungFalang said:

After reading that article I feel confident that Thai Airways has a liquidity crunch problem.

So do i

As long as they ignore losing money, they will always have money.  Gosh, why wouldn't Airbus want to partner with such an astute organization?

13 minutes ago, yellowboat said:

As long as they ignore losing money, they will always have money.  Gosh, why wouldn't Airbus want to partner with such an astute organization?

could you imagine them in a meeting room running off those figures to a wanted strategic partner ….  Yikes !!!

As long as they keep operating until the end of next week, no problem. 

I'd understand better if they equated baht losses to submarines. Did they lose half a sub, two subs, etc...  

With 33 THb to the Euro, I do not have a liquidity crunch either!

17 hours ago, webfact said:

The national flagship carrier Thai Airways International (THAI) has denied reports that it is experiencing a liquidity crunch.

That might have been true but that minute has passed.

when they run out of cash, they just ask for more tax payers money

I am interested in funding my retirement along similar lines which ministry should I contact?

29 minutes ago, nong38 said:

I am interested in funding my retirement along similar lines which ministry should I contact?

All of them, smooth as silk

19 hours ago, webfact said:

As of the end of June this year, THAI’s revolving credit line accounted for 13.4 per cent of the total projected revenue for the year.

Look at that smarty-pants, he just pulled out a percentage number and with a decimal point to boot. That's gonna stop dead all critics and experts!

2 hours ago, HuaHinHim said:

As long as they keep operating until the end of next week, no problem. 

by my calculations they should be belly up by next Tuesday ….   lol

19 hours ago, webfact said:

THAI president adamant national airline has no liquidity crunch

What are they thinking ,we all know that they are in deep trouble ,Billions of THB in Debt and rising by the year bleeding the Government . He gets his salary all the time so no worries for him Lying sods.

The company is pretty much insolvent so he is clearly lying as usual. 

We still have a piggy bank ,we have not broken yet,so we are OK.

regards Worgeordie

Aircraft Ditching Incident = Liquidity Crunch?

15 hours ago, lujanit said:

The sensible business thing to do would be to bring in a foreign airline operations expert. Of course his first task would to cut the free flights to executives, their families and friends. Not a popular move. Next he would get rid of the overpopulated staff. Again not popular. Just necessary good business practice.

 

Yet the Thais will resist this as someone is knocking over their rice bowl.

Could you imagine Tim Clark (President of Emirates) stepping in to lend some advice?

It was very sad that the company decided to sell their foreign properties that were assets instead of trying to properly utilize and manage them. Off duties flight crews always get upgraded on board and bumped other passengers off using connections while too many are quietly stealing from the company. Wonder how many board members and president know how complex it is to manage an airline without any background!!!

Another Chinese bail out needed in the near future?