dsquared37

In an article today in the Bangkok post, the recently replaced Finance Minister, Thirachai Phuvanatnaranubala, claims the gov will de-vest themselves of some Thai Airways International holdings in order to take the debt off their sheets.

Article here.

brunos

Fun. Another example of creative accounting. But not yet close to Greece's past creativity.

Creole Spirit

THAI boss denies he's leaving
new article from todays "The Nation" '(April 25, 2012)

Thai Airways International president Piyasvasti Amranand is annoyed about the rumour that he is on the way out of the national carrier.
"This is nonsense. I wonder why some still believe in this rumour," he said in a recent interview.
"This is groundless and there is no reason for a change, as THAI operations are on the right track."
He denied signing or submitting a letter of resignation or coming under external pressure to leave his job.
For more than 60 years, THAI has always faced this revolving-door rumour after changes in the government, as new governments tend to nominate their own choices for state-enterprise chairmen and presidents.
In late 2009, Piyasvasti became the first THAI president to work under an employment contract. Should he resign before his term ends next year, he is liable to penalties of six months of salary, which is now about Bt1 million. He is also entitled to six months of compensation if the contract is terminated by any other party.
Unlike many predecessors, he has won strong support from shareholders and the general public, after his efforts to reintroduce transparency in the image-tainted organisation. Under his guidance, the airline has trimmed non-fuel expenses, which helped cushion it from turbulence both domestic and international.
This year, the airline is on course to achieve its net-profit target of Bt6 billion, he said.
New aircraft with better-designed seating capacity and entertainment systems as well as the new business plan focused more on Asian destinations are contributing to higher revenue.
First-quarter revenue has met the government's expectations. The cabin factor as of April 20 had nearly hit 80 per cent.
This year, while jet-fuel prices exceed last year's level, THAI stands to gain from hedging about 80 per cent of its purchases.
Thanks to contracts, THAI has earned foreign-exchange income of Bt350 million to Bt400 million a month.
"If things go as planned throughout this year, we could witness a gain of more than Bt4 billion, and that would push up our financial results," he said.
For now, Piyasvasti isn't paying any attention to speculation over his job security.
"There are so many things to deal with. I'd rather focus on my work," he said.
One of them is the annual shareholders' meeting scheduled for today.

somkiat

What has reducing debts by selling assets to do with creative accounting ?

brunos

Wow, that's a quick response to my January post.

Did you read the article? I am not saying that it is correct, but what is suggested in the article is that the Government would sell a few shares to a fund (Vayupak Fund ) which is controlled by the government. By selling these few shares, the Government would reduce its direct holdings in TG below 50% and would not need to consolidate the debt of TG in its book. Thereby reducing the official government debt level. Akin to what Greece did in a more sophisticated way.

pansted00

Indeed, except TG is too cheap to pay Goldman Sachs to do the falsification of their balance sheet .
Mind you, there is not one single Thai company whose published financials fairly represent the organization's position and performance to the firm's stakeholders .

somkiat

Speed is everything



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