webfact Posted April 30, 2020 Share Posted April 30, 2020 Exclusive: Thai Airways to seek $1.8 billion emergency loan to navigate virus impact - document By Chayut Setboonsarng and Panu Wongcha-um FILE PHOTO: Thai Airways airplanes are parked at the tarmac of Suvarnabhumi Airport in Bangkok, Thailand March 25, 2020 REUTERS/Jorge Silva BANGKOK (Reuters) - Thai Airways International PCL <THAI.BK> aims to seek a 58.1 billion baht ($1.80 billion) emergency loan to maintain liquidity and see it through a coronavirus-induced drop in demand, showed a document from the airline detailing its plan. The proposed bridge loan, guaranteed by the Ministry of Finance, was approved on Wednesday by a committee chaired by Prime Minister Prayuth Chan-ocha and will be put to Cabinet for final approval as early as next week, a person involved in the decision to seek the loan told Reuters. Thai media has reported the airline was seeking a multi-billion baht loan. The document seen by Reuters reveals the carrier's detailed plan for the first time. After the loan, the money-losing national carrier will raise 77.04 billion baht in capital by issuing new shares around November, and use the proceeds to pay off the loan plus interest and maintain liquidity, the document showed. Thai Airways had no immediate comment when contacted by Reuters. The document's authenticity was confirmed by two people involved in the decision to seek the loan, who declined to be identified as they were not authorised to speak with media. Thai Airways was already facing financial trouble before the coronavirus outbreak, having reported losses since 2017. (Reporting by Chayut Setboonsarng and Panu Wongcha-um; Editing by Christopher Cushing) -- © Copyright Reuters 2020-04-30 - Whatever you're going through, the Samaritans are here for you - Follow Thaivisa on LINE for breaking COVID-19 updates 2 Link to comment Share on other sites More sharing options...
Popular Post Grumpy John Posted April 30, 2020 Popular Post Share Posted April 30, 2020 So, this is a loan that looks like a loan but is in fact a grant...cos I suspect repayment will be sometime in the future...yet to be determined but not anytime soon. 2 3 Link to comment Share on other sites More sharing options...
Popular Post Just1Voice Posted April 30, 2020 Popular Post Share Posted April 30, 2020 How they going to pay back a loan when they haven't shown a profit in 10 tears or more 7 1 2 Link to comment Share on other sites More sharing options...
Popular Post Yadon Toploy Posted April 30, 2020 Popular Post Share Posted April 30, 2020 How are they eligible for a loan? The law states that any State owned enterprise that posts a loss for three consecutive years is not eligible for a loan! And... Where is the rehabilitation plan to make this business viable? Where are the cuts to be made? How will it turn a profit when up and running again? How is the existing B200billion+ debt to be paid off? How is this additional loan to be paid off? And... Doesn't it feel immoral and unethical to pump taxpayers' money into this when there are millions being denied money for basic essentials like food? 7 3 1 Link to comment Share on other sites More sharing options...
Popular Post Misterwhisper Posted April 30, 2020 Popular Post Share Posted April 30, 2020 1 hour ago, webfact said: maintain liquidity Maintain liquidity for what? All planes are grounded. Kerosene purchases are not in the books at the moment. All new aircraft purchases have been canceled or deferred indefinitely. A large number of low-level staff either is on involuntary leave or has been suspended. Oh, I know... those grossly over-paid board members and inept executives who've run the airline in the ground in the first place still insist on receiving their monthly paychecks,. right? 4 Link to comment Share on other sites More sharing options...
Popular Post ozz1 Posted April 30, 2020 Popular Post Share Posted April 30, 2020 It's sad when they have money to help a dying airline but can't help their own poor citizens but this is Thailand 14 2 Link to comment Share on other sites More sharing options...
Popular Post graemeaylward Posted April 30, 2020 Popular Post Share Posted April 30, 2020 3 hours ago, webfact said: After the loan, the money-losing national carrier will raise 77.04 billion baht in capital by issuing new shares around November, and use the proceeds to pay off the loan plus interest and maintain liquidity, the document showed. Who in their right mind would buy shares in an airline that has been producing a loss for many years, at a time when very few people will be travelling anywhere for a couple of years! Madness sheer madness! 6 Link to comment Share on other sites More sharing options...
Borzandy Posted May 1, 2020 Share Posted May 1, 2020 15 hours ago, Yadon Toploy said: How are they eligible for a loan? The law states that any State owned enterprise that posts a loss for three consecutive years is not eligible for a loan! And... Where is the rehabilitation plan to make this business viable? Where are the cuts to be made? How will it turn a profit when up and running again? How is the existing B200billion+ debt to be paid off? How is this additional loan to be paid off? And... Doesn't it feel immoral and unethical to pump taxpayers' money into this when there are millions being denied money for basic essentials like food? Agreed, but please, I have booked a flight in early July.... 1 Link to comment Share on other sites More sharing options...
JAG Posted May 1, 2020 Share Posted May 1, 2020 24 minutes ago, Borzandy said: Agreed, but please, I have booked a flight in early July.... 24 minutes ago, Borzandy said: Agreed, but please, I have booked a flight in early July.... If I were you I would hang on to the hope that there is enough left over by then, after various troughs have been filled and refilled, to give you a refund. Let's face it, with all the umh, outstanding commitments to be met, and little chance of any revenue over the coming months, they will probably be asking for more in July! 2 Link to comment Share on other sites More sharing options...
Srikcir Posted May 1, 2020 Share Posted May 1, 2020 Capital for liquidity artificially protects stock value (by extension investors) but does nothing about protecting incomes for employees (does NOT include officer salaries) on reduced pay or furloughed. Any government 'bailout' should be directed towards protecting or minimizing THAI employee income in effect as supplemental unemployment or job reduction insurance until airline business can operate responsibly and safely. 1 Link to comment Share on other sites More sharing options...
Popular Post DrTuner Posted May 1, 2020 Popular Post Share Posted May 1, 2020 Time for a head shot. Make it a double tap to prevent zombie. 4 3 Link to comment Share on other sites More sharing options...
Denim Posted May 1, 2020 Share Posted May 1, 2020 On 4/30/2020 at 12:55 AM, webfact said: After the loan, the money-losing national carrier will raise 77.04 billion baht in capital by issuing new shares around November, Not going to be a rush to buy shares in a company apparently dedicated to losing tax payers money. Everyone knows why Thai can't turn a profit. If you can't do anything about that then there will never be a change. 1 1 Link to comment Share on other sites More sharing options...
hotchilli Posted May 1, 2020 Share Posted May 1, 2020 19 hours ago, webfact said: Exclusive: Thai Airways to seek $1.8 billion emergency loan to navigate virus impact - document Let the doomed airline go bust and put that money to better use propping up the health service !! 1 Link to comment Share on other sites More sharing options...
Popular Post cornishcarlos Posted May 1, 2020 Popular Post Share Posted May 1, 2020 17 hours ago, ozz1 said: It's sad when they have money to help a dying airline but can't help their own poor citizens but this is Thailand The money isn't to help the dying airline... It's for the execs under the disguise of helping the dying airline... 3 1 Link to comment Share on other sites More sharing options...
whiteman Posted May 1, 2020 Share Posted May 1, 2020 cut all the rabble out of The air line that will save one billion Link to comment Share on other sites More sharing options...
Popular Post Yadon Toploy Posted May 1, 2020 Popular Post Share Posted May 1, 2020 2 hours ago, DrTuner said: Time for a head shot. Make it a double tap to prevent zombie. The only humane option. It's dying a slow death and will never recover. Time to put it out of its misery. However as we all know it will not be allowed to die. Vested interests, loss of face and another reason we cannot discuss on here to name but three. Normal taxpaying Thais will foot the bill to subsidise lavish trips overseas for the certain few. Thai airways is a microcosm of what is actually wrong with the country. It is decisions and resultant mistakes like this that bring down governments in places where there is at least some accountability. Convenient that Thailand only has the veneer of sham democracy and the Generals are in full control. I am of the opinion that a Thaksin administration would be more likely to achieve a favourable solution here. Generals and their mafia lackeys will not be able to deal with the harsh economic realities. 5 2 Link to comment Share on other sites More sharing options...
BobbyL Posted May 1, 2020 Share Posted May 1, 2020 1 hour ago, Yadon Toploy said: Thai airways is a microcosm of what is actually wrong with the country. Absolutely spot on. It epitomises a lot about this country over the last few years or more. This should be sent to anyone who approved this bailout, “The definition of insanity is doing the same thing over and over again and expecting different results.” 1 Link to comment Share on other sites More sharing options...
martin81 Posted May 1, 2020 Share Posted May 1, 2020 I have been waiting for a 107 USD refund from TG for a cancelled flight for over 40 days now. So they probably have no liquidity and therefore need a loan. Link to comment Share on other sites More sharing options...
ParkerN Posted May 1, 2020 Share Posted May 1, 2020 On 4/30/2020 at 5:17 PM, ozz1 said: It's sad when they have money to help a dying airline but can't help their own poor citizens but this is Thailand The people of Thailand don't give them and their freeloading families tickets to fly wherever they want to go. Link to comment Share on other sites More sharing options...
Swimfan Posted May 1, 2020 Share Posted May 1, 2020 On 4/30/2020 at 7:17 PM, ozz1 said: It's sad when they have money to help a dying airline but can't help their own poor citizens but this is Thailand Exactly. Cant even feed their own people adequately. But have money to poor into what is essentially a bankrupt airline. Link to comment Share on other sites More sharing options...
TallGuyJohninBKK Posted May 1, 2020 Share Posted May 1, 2020 11 hours ago, Denim said: Not going to be a rush to buy shares in a company apparently dedicated to losing tax payers money. Not going to be a rush to buy shares in a company apparently dedicated to losing spending tax payers money. Link to comment Share on other sites More sharing options...
Blumpie Posted May 1, 2020 Share Posted May 1, 2020 What most people are missing here is air travel is going to be vastly more expensive when this is all over. There isn't an airline on earth that hasn't been affected by this and all this money that they've borrowed will have to be paid back. This is going to be the new reality very shortly I'm afraid. Link to comment Share on other sites More sharing options...
PETERTHEEATER Posted May 1, 2020 Share Posted May 1, 2020 On 4/30/2020 at 3:46 PM, Just1Voice said: How they going to pay back a loan when they haven't shown a profit in 10 tears or more Oh gawd. There's always someone on TV who has to ask negative questions???? Link to comment Share on other sites More sharing options...
Blumpie Posted May 1, 2020 Share Posted May 1, 2020 3 hours ago, Swimfan said: Exactly. Cant even feed their own people adequately. But have money to poor into what is essentially a bankrupt airline. I hear you! The real problem is if all these airlines go into receivership and governments don't bail them out then nobody is flying ever again. It's a terrible situation. Lots of businesses have to be bailed out, there is no other way. Our ponzi scheme is falling apart. Link to comment Share on other sites More sharing options...
Captain Monday Posted May 1, 2020 Share Posted May 1, 2020 The loan should be based on a commitment to privatization and reorganization. The only way Thai airways can be beaten into profitability is with professional management, Not with Squadron Leader Somchai Nakhirandhiphoot as CEO. Even the unthinkable, bringing in a foreigner. As liberal as I am they cannot compete with professional management on the international stage without losing MONEY forever. 1 Link to comment Share on other sites More sharing options...
Blumpie Posted May 1, 2020 Share Posted May 1, 2020 1 minute ago, Captain Monday said: The loan should be based on a commitment to privatization and reorganization. The only way Thai airways can be beaten into profitability is with professional management, Not with Squadron Leader Somchai Nakhirandhiphoot as CEO. Even the unthinkable, bringing in a foreigner. As liberal as I am they cannot compete with professional management on the international stage without losing MONEY forever. In many closed off countries around the world they are FINALLY getting it and bringing foreigners in. The poor management techniques are quite entrenched. Link to comment Share on other sites More sharing options...
bwpage3 Posted May 1, 2020 Share Posted May 1, 2020 Always borrowing money they can never pay back. No accountable and it is ending up in the execs pockets Link to comment Share on other sites More sharing options...
Redline Posted May 1, 2020 Share Posted May 1, 2020 The black hole Link to comment Share on other sites More sharing options...
sammieuk1 Posted May 1, 2020 Share Posted May 1, 2020 More cotton and stiches required for my split aching sides ???? Link to comment Share on other sites More sharing options...
Bundooman Posted May 2, 2020 Share Posted May 2, 2020 I'm curious:- If the airline hasn't sown a profit in ten years, then, 1. How much money has been poured in annually, to Link to comment Share on other sites More sharing options...
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