Lifeline arranged to keep THAI afloat
 

Lifeline arranged to keep THAI afloat

The Finance Ministry has asked the Government Savings Bank (GSB) to lend 7 billion baht without collateral to Thai Airways International (THAI) to keep the national carrier in the skies through September.

The state bank said it would wait for THAI's rehabilitation plan approved by the "Superboard" which oversees state enterprises' policies before making the decision.

THAI booked losses of 12 billion baht in 2013, which will take several years to clear.

However, a source at the ministry said the GSB had little choice but to lend the amount to THAI in September because THAI needed it.

If the ministry does not guarantee the loan, it will have to ask the Public Debt Management Office (PDMO) to repay GSB by early 2015, the source said.


http://www.bangkokpost.com/most-rece...ep-thai-afloat

Meaning the company otherwise should be insolvent by September . Could anybody let the guy know who is running Etihad ; another potential jewel in his collection of fine transportation companies as it looks .

Could anyone summarize how much debt financing/subsidies TG received since June 2013?

In EU, this would be considered as unacceptable gifts from the government (even private loan as the ministry of finance gives its guarantee).
The debt to equity ratio was some 400; it will soon become infinite as the equity value of TG is getting smaller with the renewed losses.

Time to burn all my miles?

Award flyer`s last chance to enjoy DOM and lobster Thermidor for free , the Rimowa kits seem to have gone already .

I would assume that the Thai government will do whatever it takes to keep TG afloat.
They enjoy DOM too and would not mind spending taxpayers' money to keep the flag carrier afloat, as we have seen in many countries, at least for a while.

So what happens in October?

GSB says it has no plan to provide loan for THAI

BANGKOK, 31 August 2014 (NNT) - The state-run Government Savings Bank (GSB) has dismissed the reports that it will lend seven billion baht to the national carrier Thai Airways International (THAI) to improve the latter’s liquidity.

Director-General of the Customs department Somchai Sujjapongse, who is the president of the GSB, said the bank’s board had not yet considered lending to the cash-strapped THAI. Before the bank decided to lend, it had to consider the borrower’s plan to spend the loan, its ability to repay as well as its recovery plan, said Mr Somchai.

Meanwhile, Permanent Secretary for Finance and member of the THAI board Rangsan Sriworasart said the airline might borrow 20 billion baht to pay for its aircrafts and boost the liquidity. This year, THAI might borrow 5-7 billion baht from financial institutions, said the official.

http://thainews.prd.go.th/centerweb/...O5708310010002


Seems like both near-term financing and a longer-term recovery plan, are both still being worked on. TG may not yet have submitted their recovery plan to the Superboard yet? The ruling Junta's "Superboard" (State Enterprise Policy Committee) is tasked with trying to turn around the failing State enterprises (State Railway, Communications Authority of Thailand, Telephone Organization of Thailand, Thai Airways, Bangkok Mass Transit, among others).

:D:D:D But hold on - EY is also a minority shareholder in Aer Lingus and EI made money last year:p

I have Aeroplan reward flights through Thai Airways booked in January & February 2015. Should I be worried?

Lifeline arranged to keep THAI afloat
 

Ditto the above poster. I have a United Award booked in nov. For myself and the Mrs. From LHR-BKK in First.

I have cancelled my tickets for the end of October, the fee was just 1000NT not a big deal. I will fly with T'way.

This article on MH has some interesting figures with comparisons to TG; the number of employees per aircraft for TG kind of jumps out.


http://centreforaviation.com/analysi...iveness-184815


I also saw another news brief about about Nok Air (partially owned by TG) still in the red.

http://www.reuters.com/article/2014/...0GW32N20140901



And, US Ex-Im backs $497m Thai Airways Boeing order
01 September 2014 - Us Ex-Im has guaranteed an ING loan for the purchase of three aircraft.


The Export-Import Bank of the United States (US Ex-Im) has provided a $497 million loan guarantee to Thai Airways for the purchase of three Boeing 777-300ER aircraft.

ING Capital was the sole arranger (MLA) of the US Ex-Im guarantee and will...



I think we'll have to wait and see what TG presents to the "Superboard" re: short-term financing, and turn-around plans. This might happen over the next few weeks.

Quite interesting indeed.