Thai AirAsia parent plans $419 million fundraising for travel resumption

[snoop1130]

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

 

BANGKOK (Reuters) - Thai AirAsia's parent firm, Asia Aviation Pcl (AAV) on Wednesday said it is seeking to raise 14 billion baht ($419.29 million) as part of restructuring to prepare for a regional travel restart.

 

"As we gear up and ready ourselves for travel resumption post-COVID, necessary changes are required for our capital raising and revenue management strategy," AAV Executive Chairman Tassapon Bijleveld said on Wednesday.

 

Shares of AAV, which owns 55% of Thai AirAsia, fell over 7% on the announcement before recovering to a 3% decline on the Thai bourse, against an index gain of 0.4%.

 

Malaysia's AirAsia Group Bhd owns the remaining stake in Thai AirAsia.

 

AAV said it would issue convertible bonds and new shares worth 14 billion baht and aims to hold all shares in Thai AirAsia and boost the airline's liquidity.

 

The announcement comes ahead of re-opening plans that would allow vaccinated arrivals from five countries including Britain and Singapore to skip quarantine from November.

 

"We are also looking forward to recommencing our key international routes in the near future in light of the Thai government's country reopening plan," Tassapon said, adding that he expects domestic operations to return to 100% by January.

 

The restructuring, expected to conclude in the first quarter of next year, includes new shares worth 8.8 billion baht in a private placement to AirAsia Group, plus six high net-worth Thai investors, including Palin Lojanagosin, owner of advertising firm, Plan B Media Pcl, according to the filing.

 

Bangkok Bank Pcl and a fund managed by Morgan Stanley will be offered 2.2 billion in convertible bonds and new shares worth 3 billion baht will be offered to existing shareholders.

 

Earlier this year, seven Thai carriers, including Thai AirAsia, asked the government for soft-loans worth 5 billion baht for support.

 

-- © Copyright Reuters 2021-10-20

 

- Whatever you're going through, the Samaritans are here for you

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

 

(Reporting by Chayut Setboonsarng; Editing by Martin Petty)

[DrJack54]

Well they still have my money from 2 trips that I paid for to Osaka. 

AirAsia the black hole of refunds.

 

[hotchilli]

Another money-pit.

[steven100]

they were very slow to refund .... they tried every trick in the book to keep my money.

I won't be flying with them again anytime soon.

[mtls2005]

13 minutes ago, hotchilli said:

Another money-pit.

 

Probably given AAV and TAA both had big losses pre-COVID.

 

They've got to get back to pre-COVID ops, increase market share (domestic) and add int'l routes.

 

Seems challenging.

 

The interest in the private sector is strange, but the airline business still draws suckers.

 

 

 

 

[Gsxrnz]

I'll put them at the top of my list for future investments. 2nd on the list is an unbelievable opportunity to buy the Brooklyn Bridge and have it relocated to Khon Kaen.

[jacko45k]

On 10/20/2021 at 8:04 PM, DrJack54 said:

Well they still have my money from 2 trips that I paid for to Osaka. 

AirAsia the black hole of refunds.

 

Thai International kept my fare to Bali, but it was a non-refundable booking. I have pals still sitting on their Air Asia bookings Oz-Bali, who say they are still available to use (when open). 

[tonray]

On 10/20/2021 at 7:56 PM, snoop1130 said:

Thai AirAsia's parent firm, Asia Aviation Pcl (AAV) on Wednesday said it is seeking to raise 14 billion baht ($419.29 million)

Well they have my 3500 baht to start them off......