Opposition Questions Government's Intent to Control Thai Airways

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File photo courtesy: Wikipedia

 

The opposition People’s Party has raised concerns over the Thai government's latest move to regain control of Thai Airways International (THAI).

 

As the beleaguered carrier is set to exit court-mandated rehabilitative measures, Deputy Leader Sirikanya Tansakul queried the motives behind the government's sudden interest in managing the airline once more.

 

The controversy stems from the administration's proposal to appoint two new managers to the airline's rehabilitation planning panel. These nominations are intended to succeed two members who recently resigned.

 

The nominees are Polchak Nimwatana, deputy director of the State Enterprise Policy Office, and Panya Chupanich, director of the Office of Transport and Traffic Policy and Planning.

 

They join a panel that includes Thailand's former Energy Minister Piyasvasti Amranand, Fiscal Police Office Director Pornchai Thiraveja, and ex-THAI President Chansin Treenuchagron.

 

Sirikanya warned that if these appointments gain approval in the creditor meeting scheduled for this Friday, the state will effectively dominate the vote on the pivotal debt-to-equity conversion. This operation aims to address the company’s massive 60 billion baht debt ahead of its planned share price reduction.

 

The government remains THAI's largest shareholder and argues for managerial influence over its rehabilitation. However, Sirikanya insists the panel should represent creditors, not shareholders.

 

She expressed concern over perceived inequity: the government had previously extended a 12.8 billion baht loan to THAI and now seeks to exert a greater sway over decisions, potentially marginalising other stakeholders.

 

The looming government control raises the spectre of past mismanagement when ill-advised fleet expansions led to significant losses.

 

As THAI returns to profitability, Sirikanya urged creditors to reject this government proposal, stressing that any further intervention could hinder the airline’s planned return to normal operations, reported Thai PBS.

 

-- 2024-11-06