THAI's loss estimated at Bt12bn

business August 25, 2014 10:57

By The Nation

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Thai Airways International Acting President ACM Siwakiat Jayema expects this year's loss would be limited at Bt12 billion, thanks to a rehabilitation plan.

The board of directors will officially approve the establishment of a sub-committee tasked to draw up the rehab plan at the meeting on August 29, he said at a press conference today.
Members of the sub-committee will comprise representatives from the board of directors, executives, and the Superboard. 
The rehab plan, which will be implemented in a two-year course to regain the region's No.1 place, should be complete late September or early October, he said. 
Without the rehab plan, losses are expected to hit Bt20 billion this year.
In the short term, the company plans to borrow about Bt5-Bt7 billion from Government Savings Bank to boost liquidity to 15 per cent of revenue. It will also seek a Bt20 billion loan through the Finance Ministry, to further boost liquidity and pay for 5-6 new aircraft. 
"There is a room to borrow upto Bt19 billion," the president said.
Through the end of this year, THAI will be delivered seven new aircraft - three Dreamliners, two Airbus A320 and two Boeing 777.  On average, five will be delivered each year during 2015-2017.
Today, THAI Executive Vice President Athisak Padchuenjai denied the reports that some 200 pilots have tendered resignation. He said he has not yet received the resignation.
He said that each year, some pilots resign but that is normal and does not damage the company's operations. Each year, new pilots are also recruited.
Athisak noted that pilots are in high demand in the aviation industry. This may have spurred the reports. 
Media reports yesterday said that these pilots resigned en masse on worries of the company's finances. In the first half of this year, the airline showed over Bt10 billion in net loss. The outlook is not bright given fiercer competition in the industry, led mainly by low-cost airlines.
As of August, THAI employs 1,350 pilots.