"I hope this acquisition will send a message to the public that Thai AirAsia is not politically linked as it has always been said to be," said Tassapon Bijleveld, CEO of Thai AirAsia.

"We want to focus on business and to help increase tourism in the country. Everyone in management has entered into a huge debt, but we feel the need to do this for the sake of our staff and customers. I am sure the public will understand our sincere and transparent intention."

Tassapon plans to list the company on the stock market in three years. New shares will then be issued to pay the debts the directors have incurred to finance the purchase.

The directors, who earlier bought a 49-per-cent stake in Asia Aviation from Shin Corp, recently concluded a deal to buy the remaining 51 per cent from Sitichai Veerathamanoon.

The directors are Tassapon; Pornanan Gerdprasert, chief financial officer; Tanapat Ngamplang, director of flight operations; Preechaya Rasametanin, director of engineering; Bovornovadep Devakula, director of business affairs; and Santisuk Klongchaiya, director of commerce.

Together they borrowed slightly less than Bt1 billion from Credit Suisse to finance the acquisition.

After the transactions, Tassapon will hold 55 per cent in Asia Aviation, while Pornanan, Tanapat, Preechaya and Bovornovadep will each have 10 per cent and Santisuk the remaining 5 per cent.

The acquisition of Asia Aviation gives the management control of 51 per cent in Thai AirAsia, with 50 per cent held through Asia Aviation and 1 per cent having been owned by Tassapon prior to the transactions.

Tassapon said the business direction of Thai AirAsia would be maintained as planned. The airline is scheduled to add more international routes, particularly to China and India.

It plans to operate a Bangkok-Shenzhen service in mid-July followed by routes to Indochina countries. It also intends to operate Bangkok-Kunming at the end of next year. It is also plans to spread its network to Hainan in China next year, then Bali and India.

The airline has ordered 40 Airbus A320 aircraft. The first is scheduled for delivery this year, with the remainder coming over the next five years.

The airline expects to service 4.2 million passengers this year, an increase from three million last year, and generate revenue of Bt4.5 billion to Bt4.8 billion with profits of Bt150 million to Bt200 million.

Next year the airline aims for five million passengers with revenue of Bt5 billion and profit of 5-8 per cent of revenue.

Suchat Sritama

The Nation