Thai Airways ฿25 billion funding request from state coffers rebuffed by a senior debt official

[webfact]

The Director of the Public Debt Management Office Patricia Mongkhonvanit made the comments about the request from Thai Airways as she explained the outline of the government’s borrowing plans to support the economy in 2022. Thai Airways is also reported to be seeking a further ฿25 billion from several banks after it posted a profit of ฿11.1 billion for the first six months of the year following the flag carrier’s record-breaking loss for last year. It comes as the airline implements its court approved restructuring plan being managed and chaired by former President Mr Piyasvasti 

 

by Joseph O' Connor

 

The government will be looking more to international sources of funding in 2022 although most public borrowing will still be raised domestically as the Finance Ministry has embarked on a sustained policy of fiscal support to drive the economic recovery and domestic spending at the same time as reopening the kingdom to foreign tourism. Thailand’s former flag carrier Thai Airways is reported to be in discussion with lenders for a ฿25 billion loan facility while also lobbying for ฿25 billion in state financial support as it advances its survival plan.

 

A top Thai finance official on Wednesday rejected a funding request from the former flag carrier Thai Airways to the Ministry of Finance for ฿25 billion to help its liquidity position as it ramps up its operation after emerging in June from a court ordered financial restructuring process. In August, the airline reported profits of ฿11.1 billion for the first six months of the year and is reported to be focusing its attention right now on developing flight links between Europe and the kingdom as part of its restructuring operations.

 

The Director of the Public Debt Management Office Patricia Mongkhonvanit has rejected a reported request from Thai Airways made to the Finance Ministry for ฿25 billion in state funding or additional borrowings to help with the recovering flag carrier’s efforts to transform its business.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2021/11/05/thai-airways-25-billion-baht-funding-request/

 

-- © Copyright Thai Examiner 2021-11-05

 

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

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

 

 

[ChrisY1]

"profits of ฿11.1 billion for the first six months of the year".........so believable!! 

[bdenner]

11.1 Billion, the inflight kitchen must be heaving!

Sell off all the aircraft and follow the new initiative!

Edited November 5, 2021 by bdenner

[steven100]

1 hour ago, webfact said:

In August, the airline reported profits of ฿11.1 billion for the first six months of the year

     unbelievable     !!        must have sold 50 billion pastries.

[herfiehandbag]

2 minutes ago, steven100 said:

     unbelievable     !!        must have sold 50 billion pastries.

I may be going out on a limb here, but I rather suspect the Director of the Public Debt Management Office, Patricia Mongkhonvanit, doesn't really believe it either!

[lujanit]

Even if it was a typo 11.1 million baht would be unbelievable.

[Karma80]

Trough is empty. No money for tea. Please send more.

[WEBBYB808]

And now the Taxi drivers are attempting  to price gouge.  2500 from airport to Pattaya.   Do yourself a favor.  Find alternate route.  Don't  let them use you like that.

[whiteman]

And now the Taxi drivers are attempting  to price gouge.  2500 from airport to Pattaya.   Do yourself a favor.  Find alternate route.  Don't  let them use you like that.

 

When will this country ever learn the Hub of Scams is back

 

 

 

[RafPinto]

3 hours ago, ChrisY1 said:

"profits of ฿11.1 billion for the first six months of the year".........so believable!! 

Their food selling project must have been a success.

[lapamita]

6 hours ago, webfact said:

it posted a profit of ฿11.1 billion for the first six months of the year

after adjusting balance acounting, write offs, selling planes what booked as revenues vs write off depts

 

its acounting profit,,,so many comapnys return to profit in shortterm after bancrupty and undergoing for ex chapter 11 (USA) ,Insolvenzverfahren (DE)  or ......

 

nothing new

 

Gain on sales of investments  2,098,665,467  Gain on debt restructuring  8,674,737,525 

..and operating Profit still A HEAVY LOSS revenue 9  costs aprox 17 loos of 8 aprox operating

Edited November 5, 2021 by lapamita

[klauskunkel]

6 hours ago, webfact said:

Thai Airways posted a profit of ฿11.1 billion for the first six months of the year

"Darling,

My airplane is sick! Need money fast. Please help!

Miss you maak maak."

Apparently this SMS worked well...

[scorecard]

6 hours ago, ChrisY1 said:

"profits of ฿11.1 billion for the first six months of the year".........so believable!! 

So where were the cost buried?

[RichardColeman]

Be fair, if Thailand is open - if only partially due to daft demands - half full or less planes will having them running at a loss for ages.

[scorecard]

5 hours ago, herfiehandbag said:

I may be going out on a limb here, but I rather suspect the Director of the Public Debt Management Office, Patricia Mongkhonvanit, doesn't really believe it either!

When they announce that 90% of the previous: flight and cabin crews, directors and snr. managers and check-in staff are gone and will never be re-employed and there's been a 50% overall  reduction in all managerial positions and there's an obvious big lift in attitudes to customers then I'll see some hope.

 

I'll never forget calling to complain and the young man I spoke to said:

- Yes my aunt is the complaints manger but she doesn't speak to customers.

- No she's not here now, she comes to work at 10.30 because she likes to take her kids to school and have breakfast with them before she comes to work.

 

- Another time, my Thai Admin manager called (after a snr Thai consultant made a serious complaint about cabin crew attitudes to Thai passengers). Admin mngr was told 'Thai doesn't have a complaints department because we don't have complaints from passengers'.

 

 

[Cake Monster]

6 hours ago, bdenner said:

11.1 Billion, the inflight kitchen must be heaving!

Sell off all the aircraft and follow the new initiative!

This must be from the Sale of all the Chinese Doughnuts and Custard

[Srikcir]

If the 25 billion THB profit is true, the creditors would suck it up ( ie., dividend distribution?). This won't be available as capital.

[welshguy]

WHAT!!!!!!!!  11 billion profit in 6 months?

 

Cool, if they are making that much money, then they should be able to refund the money I paid for my flight to Thailand last year!

Yeah right! Ive as much chance of getting that back as winning the North Korean lottery!

 

Im no economist, I cant see anybody in the world ,(outside of the Thai government of course!) "lending" them any money!

Amazing Thai Airways.....the best way to throw away money in the whole world!!!

[madmitch]

11.1 billion profit yet in the first six months of 2020, yet in that exact period the airline entered it's bankruptcy!

[zzaa09]

8 hours ago, bdenner said:

11.1 Billion, the inflight kitchen must be heaving!

Sell off all the aircraft and follow the new initiative!

Actually, I believe it's time to pull the plug. 

[timendres]

On 11/5/2021 at 7:25 AM, webfact said:

The Director of the Public Debt Management Office Patricia Mongkhonvanit has rejected a reported request from Thai Airways made to the Finance Ministry for ฿25 billion in state funding or additional borrowings to help with the recovering flag carrier’s efforts to transform its business.

This woman should be the next PM.

[zzaa09]

2 hours ago, timendres said:

This woman should be the next PM.

Fat chance. 

She's not a member of the club.

[HAPPYNUFF]

If you practice creative accounting, 11.1 billion is    very easy to achieve. Hell  on a quiet day I  daydream about my bank balance too.

[scorecard]

On 11/5/2021 at 7:35 PM, Srikcir said:

If the 25 billion THB profit is true, the creditors would suck it up ( ie., dividend distribution?). This won't be available as capital.

Very true, the creditors (Thai and International) will be watching/monitoring every Baht of revenue/the costs* involved/the net profits, and be demanding all or a very large% of the net profits be used quickly to reduce loans. That's how it works.

 

*The creditors will continuously challenge costs and so they should, and if the old management approaches/policies continue TG will be caught out continuously in regard to operational costs, and they will continuously analyse and highlight costs in regard to many operational items and demand cost reductions. 

 

The most interesting will be how many 'free' tickets continue to be given away. 

[phetphet]

Ah well! I suppose I will be getting a cold mini croissant and a small bottle of water on my flight back to UK next week. ????

[tomacht8]

https://asia.nikkei.com/Business/Transportation/Thai-Airways-posts-first-profit-in-pandemic-thanks-to-restructure

 

The Stock Exchange of Thailand will exclude Thai Airways from its main SET index from Aug. 18, as the trading of the airline's shares has been suspended for more than three months. The airline fell within the criteria for delisting by the bourse due to reporting negative shareholder equity in its annual results.

 

Regular flight operations remained subdued, nonetheless. Revenue from passengers and excess baggage was 1.8 billion baht, down 94% from the same period in the previous year.

 

94% down in core business. Amazing how profits were made there.

[metisdead]

A post with a forbidden reference has been removed. 

[RJRS1301]

On 11/5/2021 at 12:35 PM, ChrisY1 said:

"profits of ฿11.1 billion for the first six months of the year".........so believable!! 

Creative accounting, as my auditors used to call it.

 

[RJRS1301]

On 11/5/2021 at 9:42 PM, zzaa09 said:

Actually, I believe it's time to pull the plug. 

Is that what the accounts deportment were doing to each other to get the typo in??

[mtls2005]

On 11/5/2021 at 7:25 AM, webfact said:

The government will be looking more to international sources of funding in 2022

 

The old sick buffalo con.