'We'll act if airlines are foreign-controlled'
The Civil Aviation Department is waiting for the Commerce Ministry to clarify the ownership of Thai AirAsia and Thai Sky Airlines and says it is prepared to act if they are found to be foreign-controlled.
Speculation suggests that foreign interests hold stakes of more than 51 per cent in the airlines by using nominees, which is contrary to the amended Foreign Business Act. The department's director-general, Chaisak Angkasuwan, yesterday said the agency wanted the ministry to confirm the legal ownership of both airlines in order to ease nominee concerns. Thai AirAsia is 49-per-cent owned by Malaysia's Air Asia. Thai company Asia Aviation holds 50 per cent and the remaining 1 per cent is held by the airline's chief executive Tassapon Bijleveld. Asia Aviation was formed after Temasek Holdings of Singapore took over Shin Corp. It took Shin Corp's 50-per-cent stake in Thai AirAsia to avoid threats that the budget airline would have its licence revoked over the foreign-ownership issue. Asia Aviation is 49-per-cent owned by Shin Corp and 51-per-cent owned by Thai businessman Sithichai Veerathamnanoon. "Looking at the stakeholders, we can't see anything unusual," Chaisak said. "But we have to go deeply into the management and decision-making, so that if it is controlled by foreigners, we can take some action." Chaisak said if the companies were found to have illegal levels of foreign ownership, they would be required to reshuffle their shareholding within 30 days or face temporary withdrawal of their aviation licences. If the ministry finds nominees hold some interest and that the companies fail to correct their shareholding, then the department will withdraw their licences permanently within 15 days, said Chaisak. "The department has sent a letter to the ministry seeking its clarification, and now we are awaiting the answer," he said. Asia Aviation and Thai Sky Airlines are two of 12 companies currently under investigation by the Commerce Ministry's Business Development Department for allegedly being nominees for foreign investors, so as to avail themselves of the benefits of Thai company status. The ministry has undertaken to conclude its investigations soon. If the companies are found to have breached the law, the department will hand over cases to the police for investigation.
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