Don't See 50% Cut Coming From

[thailand_tom]

Jan. 19 (Bloomberg) -- Thai Airways International Pcl, the nation’s largest airline, fell to a 16-year low in Bangkok trading after seeking emergency loans from the government to resolve a cash shortage.

The state-controlled carrier needs to borrow as much as 19 billion baht ($544 million) and aims to have a plan in place by next month, Chairman Surachai Thansitpong said today in Bangkok. Its stock slipped 5.1 percent to 6.55 baht, the lowest price since July 1992, and has fallen 80 percent in the past year.

Thai Air expects its first loss in 45 years in 2008 after anti-government protesters shut down Bangkok’s main airport for eight days from Nov. 25, stranding about 400,000 travelers during Thailand’s peak tourism season. Sales this year have fallen as much as 30 percent, Surachai said.

“Some people are afraid Thai may be issuing new shares or increasing capital,” said Raenoo Bhandasukdi, an analyst at Capital Nomura Securities Pcl in Bangkok, who has a “Buy” rating on the stock. “Still, because the company is state- owned, we believe the government can guarantee its loans.”

The carrier previously raised 10 billion baht, which is enough to fund operations until March, Surachai said.

The Bangkok airport closure may cost the carrier about 19 billion baht in lost sales and cancellations.

More money is needed “as soon as possible,” Raj Tanta- Nanta, vice president for investor relations, said by phone today. “Sooner is better than later.”

[astral]

Here is the other topic where

the government is suggesting the 50% discount on THAI fares.

[terrier123]

Last year when one of the minor carriers in Thailand had financial troubles, a list of their scores of exectutives huge salaries was published. I am sure that in the case of Thai air billions cold be saved in this area -- ie reduction in the number of board members and a cut to the remainders salaries

[benjamat]

Return flights LHR - BKK just dropped from £680 to £490. Netflights.com.

[think_too_mut]

Their tickets are not available at discounters in Japan.

59 TG flights a week, not a single one on sale.

Others sell, JAL, ANA, CX, SQ, China Airlines, Vietnam....only TG is missing at discounted prices.

They are doing well or unsure they will be in business by March 2009?

[Kerryd]

Here is the other topic where

the government is suggesting the 50% discount on THAI fares.

From that topic/article:

TOURISM PROPOSALS

Among the measures proposed to revive sector, the ministry will urge Thai Airways International and other carriers to cut fares by 50 per cent to encourage more advanced bookings.

- The Nation / 2009-01-15

And 5 days later:

Free visas for all tourists

Proposed measures that was rejected are includes cutting hotel room rate and airfare proposed to Thai Airways International, reducing value added tax on hotel room rates for one year, an exemption annual fee of Bt80 per room and urgent plan to promote the major destinations of Phuket, Krabi and Phang Nga for local tourism.

-- The Nation 2009-01-20

I've been waiting to see if there'd be a reduction in prices. I would normally buy my tickets 6 weeks in advance of a trip, and here it is 3 weeks to go, still no reduction.

Ah well, I'm sure there'll be a big drop in prices very soon. Probably be announced about an hour after I pay for the tickets I've already selected !