Cabinet to discuss state enterprise liquidity crunch : Korn

It is not yet known whether part of the planned loan infusion would be spent to rescue cash-strapped Thai Airways International (THAI) as the Ministry of Finance, which holds a 51 per cent stake in the airline, would first have to study its restructuring plan, Korn said.

He said he had discussed THAI's business improvement plan with Transport Minister Sopon Zarum. The plan is due to be submitted to the ministry by the end of the month for consideration so that loans could be acquired to help salvage the national carrier.

THAI said last month it needed up to Bt20 billion in financial support to offset losses incurred from the fuel price volatility and the impact from the November-December shutdown closure of Suvarnabhumi and Don Mueang airport by demonstrators from the anti-Thaksin People's Alliance for Democracy (PAD).

A transport ministry committee has been established to investigate the root cause of problems hitting THAI, said Korn, adding that the airline business is being hard hit due to the world economic slump and the Thailand. THAI needs to restructure and streamline its business to make it more efficient.