Eight Thai airlines seek $770 million government assistance

 

FILE PHOTO: A Thia Air Asia Airbus A320-200 plane prepares for take off at Don Mueang International Airport in Bangkok, Thailand, June 29, 2016. REUTERS/Chaiwat Subprasom

 

BANGKOK (Reuters) - Thailand’s budget and full-service carriers are seeking soft-loans worth 25 billion baht (624.45 million pounds) from the government to support their businesses amid the coronavirus outbreak, an airline executive said on Friday.

 

Commercial air travel has all but stopped as the coronavirus continues to spread and Southeast Asia’s second-largest economy stands to lose 1.3 trillion baht, most of it in the tourism sector.

 

The eight airlines will negotiate the terms of the proposed assistance, which includes soft loans worth 25 billion baht with a 2% interest rate that can be paid off over five years starting in 2021, Thai AirAsia Chairman, (AAV.BK) Tassapon Bijleveld, who has been speaking on behalf of the group, told reporters.

 

The eight airlines included, Bangkok Airways Pcl (BA.BK), Thai AirAsia, Thai AirAsia X, Thai Lion Air, Thai Vietjet Air, Thai Smile, NokScoot and Nok Airlines Pcl (NOK.BK), local media reported.

 

The package will provide liquidity for the airlines, Tassapon said, adding that they were looking for a 6.25 billion baht disbursement, worth a quarter of the credit facility, to begin this month.

 

However, further discussions with the government were required.

 

“We agree with the operational guidelines, but there are still details that require the airlines to do homework,” said Lavaron Sangsnit, Director-General, Fiscal Policy Office.

 

State-owned Airports of Thailand said that it expects passenger traffic to drop 53% for the fiscal year ending in September and had begun offering discounts for airlines.

 

A separate negotiation for the government to provide liquidity support the national carrier, Thai Airways International Pcl (THAI.BK) was also ongoing.

 

The country’s aviation regulator in early April imposed a ban on passenger flights until the end of the month to curb the spread of the virus. The government had already banned the entry of non-resident foreigners in March.

 

Thailand has reported a total of 2,854 cases and 50 deaths from the new coronavirus.

 

-- © Copyright Reuters 2020-04-24

 

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less  flights = less expenses ?

 

Air Asia is not a Thai airline...? so why are they in the picture here for assistance?

 

5 minutes ago, annabel said:

Air Asia is not a Thai airline...? so why are they in the picture here for assistance?

 

Thai Air Asia is part own by Thai company Asia Aviation and King Power has shares in it as well, the other owner is Air Asia Malaysia. All airlines around the world are in trouble so they will try to get money from whoever they can. Hopefully they will tap the shareholders first

I imagine these airlines will be last to receive anything after how much THAI will need to be bailed out with. 

12 minutes ago, annabel said:

Air Asia is not a Thai airline...? so why are they in the picture here for assistance?

 

It’s Thai Air Asia,a joint venture co with Malaysia AA and a Thai Co

...and what if (probably) there will be soon a next wave of COVID-19 ?

and how much is TG asking for .... haz a guess  xxx,000,000,  and maybe rhymes with pillians ...

 

 

 

 

Edited April 25, 20206 yr by steven100

Bangkok airways ?? Not a hope they are in need of money !

Wonder what the paint job on the planes will be after COVID...

 

Air Asia - Now everyone can fly

COVID - Now nobody can fly

2 hours ago, annabel said:

Air Asia is not a Thai airline...? so why are they in the picture here for assistance?

 

I suppose they will get 50%  of the share others may  get if they Lucky . ???? 

 

Thai AirAsia (SET: AAV, Thai: ไทยแอร์เอเชีย) is a joint venture of Malaysian low-fare airline AirAsia (Thai: แอร์เอเชีย) and Thailand's Asia Aviation. It serves AirAsia's regularly scheduled domestic and international flights from Bangkok and other cities in Thailand.

Edited April 25, 20206 yr by digger70

A couple of 'dry' months and everyone is bankrupt

Whatever happened to their cash reserves and such?

 

Probably they played and lost it in the casin..err...stock markets.

..or never bothered to save any for a rainy day.

 

 

 

41 minutes ago, digger70 said:

I suppose they will get 50%  of the share others may  get if they Lucky . ???? 

 

Thai AirAsia (SET: AAV, Thai: ไทยแอร์เอเชีย) is a joint venture of Malaysian low-fare airline AirAsia (Thai: แอร์เอเชีย) and Thailand's Asia Aviation. It serves AirAsia's regularly scheduled domestic and international flights from Bangkok and other cities in Thailand.

Similar situation with Thai Lion Air and Thai Vietjet - Thai subsidiaries of parent companies in Indonesia (Lion Air) and Vietnam (Vietjet)

At least 50% of the Thai population will never be able to afford to fly during their lifetimes (nor would they want or need to).  Instead of worrying about the airlines, worry about feeding the poor and those families who now have no jobs.  Priorities are already sadly lacking in the Thai "government."  Wishful thinking on my part, since the "government" here is really just a kleptocracy in the purest sense of the term.

Edited April 25, 20206 yr by LarryLEB

We all know which Airline will get the bulk, if not all of the money, as we can't have the VIP Airline for the free flying Elite going out of business.   After all; Thai Airways have been bailed out by the Taxpayer for so long that it's become the 'old normal' thing to do and now it will become the 'new normal' !!

Edited April 25, 20206 yr by trainman34014

2 hours ago, ronaldo0 said:

Bangkok airways ?? Not a hope they are in need of money !

The chairman of Bangkok Airways is one of the richest men in Thailand, the company can borrow money from him. If the Govt. does give them money there should be strings attached; such as giving up the monopoly on Samui Airport, it's a bl$$dy rif off flying there.

Let the badly managed airlines go bankrupt.  Giving them soft loans is money the government will never get back.  The longer this lasts these no-profitable airlines will be back in line for round two.

 

The Australian Government had the right idea with Virgin.  We are not giving you one cent, talk to your shareholders.  Since the shareholders wouldn’t come to the party Virgin are now in administration.

Cool

 

Still some think in 6 months everything is back to normal.  

 

Hard choices, bail out airlines but no tourists to use them.  Bail out people but no airlines to fly, all bankrupt.

Prices will be going up up and up

1 hour ago, lujanit said:

Let the badly managed airlines go bankrupt.  Giving them soft loans is money the government will never get back.  The longer this lasts these no-profitable airlines will be back in line for round two.

 

The Australian Government had the right idea with Virgin.  We are not giving you one cent, talk to your shareholders.  Since the shareholders wouldn’t come to the party Virgin are now in administration.

Guess you don,t recall qantas fares before virgin arrived,Australia will suffer if there is no other option.Not to mention the 16000 staff at Centrelink. 

17 minutes ago, Olmate said:

Guess you don,t recall qantas fares before virgin arrived,Australia will suffer if there is no other option.Not to mention the 16000 staff at Centrelink. 

The adminisitrators expect Virgin to survive albeit much leaner focusing on mainly domestic routes.  Yes I lived through the Ansett failure and had no choice but to fly Qantas.

 

The point I am making is this government has no business bailing out unprofitable and unprofessionally managed airlines. Especially Thai Airways.

Thank you all for the clarification in regards to

Air Asia... I thought it was 100% Malaysian

13 hours ago, Alex 012 said:

Prices will be going up up and up

Ain't Nothin' Goin' On but the Rent.

Good luck with that.