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Published on November 24, 2007

Without standards, Thailand's budget airlines could suffer from a massive shutdown like in India, where the damage was huge.

Udom said fares should reflect actual costs and cited Thai AirAsia, 49-per-cent-owned by Malaysia-based AirAsia, for quoting low fares at a loss to destroy other carriers.

He said AirAsia could subsidise the losses by mobilising funds from the Malaysian stock exchange. If all other carriers are forced to shut down, then Thai AirAsia could dominate the local low-cost airline industry, whereas Thai airlines are barred from entering the Malaysian market, he said.

Saha backing

Saha Union's board of directors has approved the restructuring plan of its loss-making subsidiary Union Footwear. In a statement to the Stock Exchange of Thailand, the board approved Union Footwear's plan to raise capital by Bt400 million. It will also buy all shares left over from the rights offering.

The board also approved a plan to subcontract Union Footwear for manufacturing electronics parts, an assets sale worth Bt300.95 million to Union Footwear and renting factory and land to the company for Bt170 million per annum.

Any of these decisions can be revoked if they are rejected by Union Footwear shareholders.

Reserves fall

Thailand's foreign reserves as of November 16 were US$83.5 billion (Bt2.8 trillion), compared with $83.8 billion a week earlier, the Bank of Thailand said in a statement. The central bank said its net forward position was $18.8 billion, compared with $18 billion on November 9.

The Nation