Prayut warns THAI that govt will step in if bailout fails

[snoop1130]

Prayut warns THAI that govt will step in if bailout fails

By The Nation

 

 

Prime Minister Prayut Chan-o-cha warned on Tuesday (May 5) that the government had handed Thai Airways its last chance to reform.

 

The Finance Ministry has reportedly agreed to guarantee a Bt54-billion bailout loan for THAI and a further Bt80-billion recovery loan.

 

Prayut said the revival plan for the ailing national carrier had not been discussed at May 5’s Cabinet meeting since the State Enterprise Policy Office was responsible for this matter. THAI is a state enterprise which is 51-percent owned by the government. 

 

“This is the last time that Thai Airways will receive support from the government. If the situation worsens, there will be a complete structural overhaul [of the airline],” Prayut said.

 

The government has said that it does not want to interfere with THAI’s authority but warned that the airline must achieve 10 goals and not waste the government-backed loan.

 

THAI has posted three successive years of financial losses culminating in a net loss of Bt12 billion last year, according to Stock Exchange of Thailand data.

 

Most of its aircraft remain grounded after travel restrictions imposed to curb Covid-19.

 

Source: nationthailand.com/news/30387320

 

-- © Copyright The Nation Thailand 2020-05-05

 

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[Just1Voice]

A bunch of fat cats, on fat salaries, who know absolutely Nothing about running an airline, and don't care as long as they get their free first class tickets for themselves, their families, and friends. 

[mark131v]

Aren't most of them ex generals or their air force equivalents anyway. Must need to make room at the trough for serving personnel.......

[Justgrazing]

52 minutes ago, snoop1130 said:

a Bt54-billion bailout loan for THAI and a further Bt80-billion recovery loan

In forra penny , in forra pound ..

The " last time" was a Stones Song wasn't it and in that Mick croons " maybe the last time "  .. 

 

Thai Airways was a bloated dino' unable to operate efficiently enough to keep out of the red zone for years before this so good luck with keeping it alive even though the face of mass commercial flying is going to change out of all recognition when this is over with passenger confidence to fly again taking mths maybe yrs to recover .. They should tie up with another carrier who knows how to operate an efficient operation if they must have a national airline .. if they can get over the loss of face such a move might cause .. Highly unlikely that is so " carry on as you were " will be the end result .. 

Edited May 5, 2020 by Justgrazing
Sp

[timendres]

In other words:

Prayut warns THAI that govt will step in if bailout fails

[steven100]

I just hope our guy Khun Prayut follows through with his threat and cuts the airline into pieces.

“This is the last time that Thai Airways will receive support from the government. If the situation worsens, there will be a complete structural overhaul [of the airline],” Prayut said.

[BobbyL]

Seeing as most of the senior staff (how many vice presidents does a company need?) are ex air force boys they probably have close ties to Prayut and his merry men. 

 

This statement from him sounds good, but will this actually be enforced when Thailand lives on who your friends and connections are? I am not so sure. 

[steven100]

I am sure Khun Prayut Chan O Cha is not happy with the way THAI airways has been losing money over the past three years and more .... has it ever made a profit  ?

Sack all the directors, managers, airline staff from upper level management and start again, cut the airline up into smaller pieces and make a budget airline from it's wasted stock.

If anyone can assert their authority on these clowns it's Khun Prayut Cha O Cha.

I'm glad to see he's discussed this issue and hopefully kills the old THAI.

Edited May 5, 2020 by steven100

[Chang_paarp]

Well that is a big incentive to find external investors or changing corporate culture to embrace profitability.

[JAG]

So the existing bunch can carry on p*ss*ng taxpayers money up against the wall, confident in the knowledge that eventually someone else will sort out the problem.

[samran]

The whole point is the government should step away. Governments shouldn’t be in the business of running or owning airlines. 

 

The reasons for Thais troubles are well known, and they all stem directly from political interference. 

[ParkerN]

1 hour ago, Chang_paarp said:

Well that is a big incentive to find external investors or changing corporate culture to embrace profitability.

It won't happen and the Thai govt will not step in, largely for the same reason. They're just playing out the charade.

 

What's next?

Edited May 5, 2020 by ParkerN

[steven100]

1 hour ago, snoop1130 said:

The government has said that it does not want to interfere with THAI’s authority but warned that the airline must achieve 10 goals and not waste the government-backed loan.

wonder what the 10 goals are ..... I hope it's sack all the directors & management 

[RickBradford]

Perhaps Prayut will engage in that decisive out-of-the-box thinking Thais are so well known for and ask: "Why do we actually need a national airline?"

 

It's not as if passengers are starved of options these days to fly from anywhere to anywhere else. Save billions and put a bunch of rent-seeking old geezers in uniforms out to grass.

 

On the other hand, maybe not.

[DirtyHarry55]

They should cut their salaries they're all over paid on Thai standards.

[northsouthdevide]

Thais problems started well before covid 19.

When all other airlines in the world where buying smaller, much more economical planes, Thai bought a a very large order of overpriced over sized juice guzzlers. 

I'm sure somebody, or a group of somebody's made a killing out of the deal, but Thai have been running with their laces tied together ever since. 

In my humble opinion, no government, or receivership company would touch them with a very large barge pole. 

 

[trainman34014]

2 hours ago, steven100 said:

I am sure Khun Prayut Chan O Cha is not happy with the way THAI airways has been losing money over the past three years and more .... has it ever made a profit  ?

Sack all the directors, managers, airline staff from upper level management and start again, cut the airline up into smaller pieces and make a budget airline from it's wasted stock.

If anyone can assert their authority on these clowns it's Khun Prayut Cha O Cha.

I'm glad to see he's discussed this issue and hopefully kills the old THAI.

Last time it made a profit was 1977 i expect; the last year SAS were involved and brought some real expertise to the operation !

[Chelseafan]

Is there a frickin business plan or is it more of the same ? Never mind I think I know the answer...

 

 

[torturedsole]

If bailing out Thai is at the expense of food from the mouths of Thais then let them fold.  

[colinneil]

Prayut says this will be the last time we bail you out, that is until the next time.

Long past time the hi-so bunch had their freebies stopped, it is supposed to be a commercial airline, not A FLEET OF PRIVATE JETS.

[jaiyen]

They need to get in some expert westerners who know how to run an airline. Richard Branson is not busy right now !!

[steven100]

3 minutes ago, jaiyen said:

They need to get in some expert westerners who know how to run an airline. Richard Branson is not busy right now !!

I wouldn't say RB was a good example .... he's asking for a bailout and he's throwing in his island as part of the deal.

[steven100]

This is what's happening to every airline ....   I can see many governments owning airlines soon 

German airline Lufthansa in talks with government about rescue deal :

 

International airline Lufthansa is locked in crunch talks with the German government on the terms of a rescue deal, as it fights to avoid bankruptcy while keeping state influence at bay.

Europe's leading global airline group held its first virtual annual general meeting yesterday, unveiling a €1.2 billion (AU$2 billion) first quarter loss and painting a bleak picture of the outlook for global aviation, which has been brought to a virtual standstill by the coronavirus pandemic.

 

German weekly Der Spiegel and Bloomberg reported Friday that Lufthansa is negotiating a €10 billion ($10.8 billion) bailout with Germany that would give the government 25.1 per cent of the company and a seat on its supervisory board.

https://www.9news.com.au/world/lufthansa-airline-in-talks-with-german-government-about-bankruptcy-rescue-deal/f00954ae-373a-48c8-b8a1-67bd5f369ebc

 

[JonnyF]

This is definitely the last time we'll bail out your failing business with billions of taxpayers money (until next time).

 

Prayut's getting weally weally tough. I bet those THAI execs are quivering in their (Gucci) boots ????.

[Srikcir]

12 hours ago, steven100 said:

wonder what the 10 goals are ..... I hope it's sack all the directors & management 

Goals are unnecessary.

Government sells its shares and let free enterprise determine the airline's fate going forward. 

Take the proceeds and use as relief funding for the pandemic. 

[yellowboat]

13 hours ago, steven100 said:

I am sure Khun Prayut Chan O Cha is not happy with the way THAI airways has been losing money over the past three years and more .... has it ever made a profit  ?

Sack all the directors, managers, airline staff from upper level management and start again, cut the airline up into smaller pieces and make a budget airline from it's wasted stock.

If anyone can assert their authority on these clowns it's Khun Prayut Cha O Cha.

I'm glad to see he's discussed this issue and hopefully kills the old THAI.

The xenophobic tinpot that you adore so much is just wasting the humble Thai's money.  The airline will not get the management it needs.  Excellent carriers like Cathay Pacific were having trouble making a profit in the last couple of years.  How is Thai going to succeed where those who are much better are having a tough time?  He needs one of those Irish guys to come in and restructure everything, but we know that will not happen, as that would mean the entitled of Thailand would lose out.    Also, few in the country can afford to fly Thai thanks to cha cha's efforts to make the rich richer.  The downside of focusing wealth amongst the more equal.   Don't know how you sleep at night cheerleading these people without ready access to alcohol.

[Artisi]

Interestingly and it says a lot that the Ministry of Finance is the major shareholder - so they already have the whip-hand which would indicate their complete uselessness in running anything beyond a chook raffle in a pub, and that's doubtful. 

[steven100]

6 minutes ago, yellowboat said:

The xenophobic tinpot that you adore so much is just wasting the humble Thai's money.  The airline will not get the management it needs.  Excellent carriers like Cathay Pacific were having trouble making a profit in the last couple of years.  How is Thai going to succeed where those who are much better are having a tough time?  He needs one of those Irish guys to come in and restructure everything, but we know that will not happen, as that would mean the entitled of Thailand would lose out.    Also, few in the country can afford to fly Thai thanks to cha cha's efforts to make the rich richer.  The downside of focusing wealth amongst the more equal.   Don't know how you sleep at night cheerleading these people without ready access to alcohol.

very few airlines have been making a profit over the past and it's more of a case of which has been losing the least $$$ ....  This delinquent airline needs chopping up and hire a decent international CEO. 

[Henryford]

They will never let TA fail. How else would the fat cats get their free 1st class tickets.

[pineapple01]

Id have to talk to the PM like i did our Kids once. Its easy to have Big Ideas with someone elses Money.