THAI won't borrow from Government Bank to strengthen liquidity

[webfact]

THAI won't borrow from Government Bank to strengthen liquidity
By Digital Content



BANGKOK, Sept 10 -- National flag carrier Thai Airways International (THAI) will not ask the Government Savings Bank (GSB) for a loan to increase its liquidity, according to a senior THAI executive.

Areepong Bhoocha-oom, acting chairman of the airline's executive board, said THAI did not need to borrow from GSB this year because improving ticket sales for the fourth quarter, its available credit lines and postponing delivery of two aircraft from this year to the middle of next year.

He said that earlier THAI had planned to borrow Bt7 billion from GSB but 78 per cent of tickets were reserved for the high season.

Cost-saving measures together with the rising ticket sales and the aircraft delivery postponement would allow THAI to have enough cash and credit lines for its operations until March.

Mr Areepong denied that the GSB had rejected its borrowing request.

He said THAI would have to borrow next year to procure the aircraft.

Operational results in the last two months of this year would tell how much THAI would have to borrow next year, he said. (MCOT online news)


-- TNA 2014-09-10

[ezzra]

If I were a bank, I also wouldn't let them borrow one single baht of me, why? coz they're a

flight risk...

[Evolare]

I stopped flying with thai because the price was too high, service level had dropped and the planes especially where old. But since they got delivery of the new 777 and have addressed the problems with pricing policies and service level have increased again I have become a frequent flyer with Thai again much like many others. I wonder if the changes in Thaiair are thanks to the military aswell!?

[Nuddy]

If I were a bank, I also wouldn't let them borrow one single baht of me, why? coz they're a

flight risk...

By crikey thats a good one.

Thanks mate for making me laugh out loud.

I am an Australian and when I want to fly to Australia Thai Air have the direct flights.

Bkk to Brisbane direct. Bkk to Perth direct.

It seems to me that every one else has to stop off at KL or round a bouts to get from Bkk to an Australian capital.

I like Thai Air and want them to survive their incompetent management.

Regards

[marcusd]

If I were a bank, I also wouldn't let them borrow one single baht of me, why? coz they're a

flight risk...

By crikey thats a good one.

Thanks mate for making me laugh out loud.

I am an Australian and when I want to fly to Australia Thai Air have the direct flights.

Bkk to Brisbane direct. Bkk to Perth direct.

It seems to me that every one else has to stop off at KL or round a bouts to get from Bkk to an Australian capital.

I like Thai Air and want them to survive their incompetent management.

Regards

I could not agree MORE! I see everyone stating terrible things about Thai is overpriced. blah blah blah.

MY GOD! All I see is people willing to spend hours on a layover on a cheap flight on a terrible airline with no extras such as WATER, drinks blankets food tvs.

THAI IS WONDERFUL and reasonable on international legs.

DOMESTIC they need to lift their game.

I agree with you that layovers at KL on Air Asia flights to save $100. GOD ALMIGHTY how pitiful of people to the lengths they go to save a few lousy dollars on a long flight!

[maoro]

For years I have flown every few weeks from Singapore to Bangkok and return of course. Thai Airways is only about $100 more than Air Asia and I do not have to complete customs and collect bag and check back in again at Changi. (This is the final leg of my trip). You need to book fairly well in advance to secure this price, if you book a few days before flying the price is something like $1,000 more and then this is expensive.

[rickirs]

"Mr Areepong denied that the GSB had rejected its borrowing request."

Flashback to 2014-02-15 :

The GSB had denied Yingluck's request to lend the maximum credit line to the BAAC of Bt20-billion to the state-run bank Bank for Agriculture and Agricultural Cooperatives, even though the loan would be used to make long-overdue payments to farmers for rice pledged to the government. At the time GSB had a Bt100 billion in excess liquidity beyond its statutory liquidity.

Today

If GSB won't support loans for the government to pay off the rice farmers that would assure their livelyhood, it surely would reject any Thai Airlines request for a loan just to increase its liquidity. THAI should do what any airlines should do when it cannot borrow funds to operate and grow revenues - reduce its operating profile to lower costs or sell off the airlines to private investors who will provide the necessary liquidity. The "Thai Airlines" name has brand recognition and established domestic / international network for reservations and service. It would command a sale premium over an arilines started from scratch.

[jakobvarming]

The useless company should just fall apart and die, with all the internal nepotism and corruption.

I don't know any other company with such poor service, they are overpriced and most staff on the planes are useless as they never will face crisis amongst the passengers.

My two absolutely worst experiences with them:

• A 29 hours delay of flight TG621 the 21st August 2009 in Manila, Philippines, going to BKK
• Not being able to board the plane in KL with a confirmed ticket last month going back to BKK, I had to spend hours in an almost closed down lounge with two ladies from KL, who also was denied to board. They did too have confirmed tickets! THAI overbooked the plane and told us that that was common practice in all airline companies... What an excuse!