Popular Post webfact Posted May 18, 2020 Popular Post Share Posted May 18, 2020 Thai Airways faces privatisation if it declares bankruptcy By The Nation It is expected that the Cabinet will give the go-ahead to the rehabilitation of Thai Airways International (THAI) as per the Bankruptcy Court’s procedure at its meeting today (May 19). This could potentially result in the airline losing its status as state enterprise. The State Enterprise Policy Committee, chaired by Prime Minister Prayut Chan-o-cha, decided on Monday to force the national carrier to file for bankruptcy and rehabilitation under the court’s process. THAI is listed on the stock market and has been in financial trouble for many years, and now, with the Covid-19 crisis, things have become worse. Deputy Prime Minister Anuthin Charnvirakul said THAI may lose its status as state enterprise once it starts going through the rehab procedures set by the Bankruptcy Court. Once that happens, the State Enterprise Committee will no longer have authority over the carrier, though the manager of the rehabilitation will have the power to manage the airline’s business restructuring plan. The airline will be able to continue operating while its debts and businesses are being restructured, and it will not have to service debts during that time. Narumon Pinyosinwat, government spokesperson, said it is still not clear whether the airline’s bankruptcy case will be filed in a Thai or foreign court. However, an informed source at the Transport Ministry said the case should go to a Thai court even though 30 per cent of the airline’s Bt200 billion debt is owed to foreigners. Some sources suggested that the government file the case in the United States in order to stop foreign creditors seizing THAI airplanes when they land on foreign soil. The Transport Ministry source, however, said there should be no such problem if THAI can negotiate with its foreign creditors, most of whom have leased planes to the airline. Meanwhile, Nares Puengyam, leader of the THAI trade union, voiced concern about the airline potentially losing its status as state enterprise. “The union agrees with the plan to rehabilitate via the Bankruptcy Court’s process, but we do not agree with the proposal to reduce the Finance Ministry’s stake by 2 per cent,” he said. The Finance Ministry currently holds a 51.03 per cent stake in the airline, but if its holding is cut to below 50 per cent, THAI will no longer be a state enterprise. Nares said he was worried that this would adversely affect the company’s credit rating and push up the cost of future borrowing. Officials, however, say that once THAI becomes a private entity, it will find it easier to restructure by cutting redundant staff, slashing wages as well as cancelling perks offered to the local elite and efficiently managing its costs as a whole. A recent news report suggested that the Finance Ministry may sell some of its stake to Vayupak Fund, an investment vehicle that was set up by the ministry, which will inject fresh funds into the airline. Initially, THAI management had proposed that the Finance Ministry borrow Bt50 billion to finance the ailing airline, but the plan was rejected. Source: https://www.nationthailand.com/business/30388071 -- © Copyright The Nation Thailand 2020-05-19 - Whatever you're going through, the Samaritans are here for you - Follow Thaivisa on LINE for breaking COVID-19 updates 1 2 Link to comment Share on other sites More sharing options...
Popular Post YetAnother Posted May 18, 2020 Popular Post Share Posted May 18, 2020 thai airways is irrelevant 3 2 1 Link to comment Share on other sites More sharing options...
Popular Post smedly Posted May 18, 2020 Popular Post Share Posted May 18, 2020 25 minutes ago, webfact said: Thai Airways faces privatisation if it declares bankruptcy could be the best thing ever to happen to this public money sapping quagmire creditors will not be happy 12 1 1 Link to comment Share on other sites More sharing options...
torturedsole Posted May 18, 2020 Share Posted May 18, 2020 ... and privatisation means collapse. Good. 1 Link to comment Share on other sites More sharing options...
Solidpoo Posted May 18, 2020 Share Posted May 18, 2020 Steady decline. Not surprising. Imagine being a pilot and having % of your salary deducted each month for those employee share purchase plan. Thinking of selling those shares for your retirement and then looking at this graph. 1 2 1 Link to comment Share on other sites More sharing options...
Popular Post tribalfusion001 Posted May 18, 2020 Popular Post Share Posted May 18, 2020 I had a pleasant flight with them in March going back to the UK, they have been over priced for years, but were always an option for a direct flight to BKK. 3 Link to comment Share on other sites More sharing options...
torturedsole Posted May 18, 2020 Share Posted May 18, 2020 7 minutes ago, Solidpoo said: Thinking of selling those shares for your retirement and then looking at this graph. I used to contract work for an apparent blue-chip company in the UK back in the 90s. The regular staff were riding on the crest of a wave with their share prices but they couldn't bring themselves to sell them when the going was good. Link to comment Share on other sites More sharing options...
Dcheech Posted May 18, 2020 Share Posted May 18, 2020 50 minutes ago, webfact said: Some sources suggested that the government file the case in the United States in order to stop foreign creditors seizing THAI airplanes when they land on foreign soil. The Transport Ministry source, however, said there should be no such problem if THAI can negotiate with its foreign creditors, most of whom have leased planes to the airline. It looks like the end game is here. Thai Airways will have to file for bankruptcy. Not that that will save it but it will end their full scale feeding at the public trough. Even in bankruptcy they are still trying to play semi legal. Yes "foreign creditors" will try to seize their aircraft if bankruptcy is filed in Thailand and not internationally. They will know what this "negotiation" means, and try and grab assets. 2 Link to comment Share on other sites More sharing options...
Popular Post ezzra Posted May 18, 2020 Popular Post Share Posted May 18, 2020 1 hour ago, webfact said: It is expected that the Cabinet will give the go-ahead to the rehabilitation of Thai Airways International But of course they will, where else can Thailand elite will place their lackeys and cronies in high paying positions and dump billions in losses every year propping up an unprofitable enterprise, bloated and unionized work force while buying new planes every so often and keep many other useless planes?... 9 Link to comment Share on other sites More sharing options...
dallen52 Posted May 18, 2020 Share Posted May 18, 2020 A rose by any other name is still a rose... Thai airways is Certainly no rose, or Thai orchid come to think about it. Never the cheapest way to fly, just the convenient way, Melbourne to Bangkok. They should be fully audited by independent auditors. Restructuring is definitely required. Privatization may be the answer. If declared bankrupt it could be a great pickup. But what airline has the cash to buy them and their debts? As long as they honour my flight credit and get the international flights up ASAP, the rest is up to them. 2 Link to comment Share on other sites More sharing options...
Popular Post impulse Posted May 18, 2020 Popular Post Share Posted May 18, 2020 2 hours ago, webfact said: Some sources suggested that the government file the case in the United States in order to stop foreign creditors seizing THAI airplanes when they land on foreign soil. Not sure I'd be booking any R/T overseas tickets on Thai, even when they start flying international. Probably okay on the outbound leg. The return leg? Maybe not so much. 1 2 Link to comment Share on other sites More sharing options...
dallen52 Posted May 18, 2020 Share Posted May 18, 2020 1 hour ago, torturedsole said: I used to contract work for an apparent blue-chip company in the UK back in the 90s. The regular staff were riding on the crest of a wave with their share prices but they couldn't bring themselves to sell them when the going was good. It's called greed. How much is enough? Shrouds don't have pockets. No need for cash when you croak it. 1 Link to comment Share on other sites More sharing options...
dallen52 Posted May 18, 2020 Share Posted May 18, 2020 5 minutes ago, impulse said: Not sure I'd be booking any R/T overseas tickets on Thai, even when they start flying international. Probably okay on the outbound leg. The return leg? Maybe not so much. I have my one way back to LOS waiting for the relaxing of restrictions so i can get back. Pending the idiotic sanctions / restrictions that they may impose in order to return. Link to comment Share on other sites More sharing options...
mr mr Posted May 18, 2020 Share Posted May 18, 2020 you hear that mr anderson. that's the sound of inevitability. 2 Link to comment Share on other sites More sharing options...
Popular Post JonnyF Posted May 19, 2020 Popular Post Share Posted May 19, 2020 Privatisation is the way to go IMO. Get some experienced, proven leaders in, ideally foreign to shake things up. Audit the business, sack anyone found to be corrupt, remove the countless unnecessary positions and then see if they can stand on their own 2 feet. If they can't then just let them collapse - no more taxpayers money. 6 Link to comment Share on other sites More sharing options...
Popular Post Pilotman Posted May 19, 2020 Popular Post Share Posted May 19, 2020 3 hours ago, smedly said: could be the best thing ever to happen to this public money sapping quagmire creditors will not be happy It will never happen, it is too much of a status symbol for the Thais to let it go. the loss of face would be unacceptable. There will be a smoke and mirrors job done on the remains and it will keep going under State control and financing. Does anyone here really believe that Emirates, Gulf Air, Qatar, Kuwait Airlines , Etihad, Oman Air, Saudi Arabian, Air China, Hainan Airlines, etc are private enterprises? They may look it on the surface, but they are State controlled and backed, never to collapse. Thai is the same, just not backed up by an oil economy, not that oil is the best thing to have in reserve right now. Many airlines are going to fail in the coming months and air travel is going to become very expensive, prohibitively so for very many people. 3 Link to comment Share on other sites More sharing options...
Vigilante Posted May 19, 2020 Share Posted May 19, 2020 Probably a thai billionaire will buy it for the princely sum of 1 baht and take on some of the debt. After heroic efforts to make the company profitable ,he will throw in the towel 3 years down the line. Then the govt will buy it back for nothing, take on the (junk) debt, which will should be quite small By that time, the company will be smaller with fewer planes/employees. It might work. 1 Link to comment Share on other sites More sharing options...
stouricks Posted May 19, 2020 Share Posted May 19, 2020 (edited) CP Airlines flying Boeing 711s! What's confusing you Dazinoz. It is supposed to be a JOKE, you know FUNNY Edited May 19, 2020 by stouricks 1 1 Link to comment Share on other sites More sharing options...
Canuck1966 Posted May 19, 2020 Share Posted May 19, 2020 3 hours ago, torturedsole said: ... and privatisation means collapse. Good. It means no more freebies and competitive pricing Poodles flying first class all the time eats into the bottom line! Link to comment Share on other sites More sharing options...
Antonymous Posted May 19, 2020 Share Posted May 19, 2020 (edited) 4 hours ago, webfact said: Officials, however, say that once THAI becomes a private entity, it will find it easier to restructure by cutting redundant staff, slashing wages as well as cancelling perks offered to the local elite and efficiently managing its costs as a whole. THIS! Way to go. Edited May 19, 2020 by Antonymous 1 1 Link to comment Share on other sites More sharing options...
yellowboat Posted May 19, 2020 Share Posted May 19, 2020 5 hours ago, webfact said: Officials, however, say that once THAI becomes a private entity, it will find it easier to restructure by cutting redundant staff, slashing wages as well as cancelling perks offered to the local elite and efficiently managing its costs as a whole. Nothing like having a bunch of parasites sucking you dry while you are trying to run a business. Why would anybody want to invest while the connected get a free ride on your investment? 1 Link to comment Share on other sites More sharing options...
Andyfez Posted May 19, 2020 Share Posted May 19, 2020 1 Link to comment Share on other sites More sharing options...
Popular Post Pilotman Posted May 19, 2020 Popular Post Share Posted May 19, 2020 What a difference between the debate about Thai Airways and the Asian airline I worked for. When we got rid of our ageing B747 Combis and the old boss invested in B777-300s they held staff seminars to go over the costs of operating the new aircraft, passenger seat costings, projected load factors and revenue, cargo costs, fuel hedging , engineering, engine lease costs. That was followed by a document to all staff giving the bare facts. All staff were told of a wage freeze for the first 2 years of operation of the new aircraft. There were a few rumbles, but everyone had the financials. The old man was right and the airline remained profitable through the re equipping. What a difference. 3 1 Link to comment Share on other sites More sharing options...
hotchilli Posted May 19, 2020 Share Posted May 19, 2020 5 hours ago, webfact said: Thai Airways faces privatisation if it declares bankruptcy Trying to salvage something that is completely lost, it's been sliding for the last decade at least and now it's a debt ridden un-viable proposition. Only the state enterprise has kept it afloat these past years for their own benefits of free perks & travel, the face of Thais national carriers is an embarrassment of corruption, poor management and lack of knowledge of the aviation business. 1 Link to comment Share on other sites More sharing options...
Stargeezr Posted May 19, 2020 Share Posted May 19, 2020 If bankruptcy will stop the Thai Elite from their perks and free flights no doubt, then do it now. Maybe as a private airline it has a chance of a future. Geezer Link to comment Share on other sites More sharing options...
wordchild Posted May 19, 2020 Share Posted May 19, 2020 the shares are not the issue. the whole company has a stock market value of less than 300 million USD, and most of the stock is held by the Government or quasi govt entities anyway. The issue is the debt 5 billion plus USD, and the question of who owns that debt and who will have to take the losses as chunks of it are written off. Much of the senior level debt is owed to (effectively) Govt controlled banks. But there is also a considerable amount of debenture debt which is in the hands of Thai individuals and a variety of savings co-operatives and certain corporate employee benefit funds/trusts. Some of these small savings institutions have significant positions in these debentures because, in the past, Thai was seen as a safe company and with Government backing. As debenture holders they would rank behind the Government banks in any re structuring. In the end the Government will have to make some tough calls as to how the pain is going to be shared out, but the debenture owners and the various small co-ops involved look likely to suffer significant losses. 1 Link to comment Share on other sites More sharing options...
Srikcir Posted May 19, 2020 Share Posted May 19, 2020 Lazada Airways has a nice ring to it. Thailand sell 2% from its 51% share to Jack Ma (Alibaba & Lazada owner who is also a member of the CCP prolitburo) which gives him "swing vote" and effective control. Link to comment Share on other sites More sharing options...
Oziex1 Posted May 19, 2020 Share Posted May 19, 2020 To lose thai Air would be a loss of face, bail them out again. Link to comment Share on other sites More sharing options...
cmsally Posted May 19, 2020 Share Posted May 19, 2020 2 hours ago, stouricks said: CP Airlines flying Boeing 711s! What's confusing you Dazinoz. It is supposed to be a JOKE, you know FUNNY Serving microwaved ready meals ! Can't wait! 1 Link to comment Share on other sites More sharing options...
spidermike007 Posted May 19, 2020 Share Posted May 19, 2020 Let it happen. State owned monopolies are rarely capable of providing great service (True Visions as the cable monopoly here is a great example, horrifically poor content). Let them go bankrupt. They have been costing the nation alot of money, for a long time. They are a "has been", on the international scene, and a once very good airline. But, that was a long time ago. And it is best to privatize. State monopolies might work in North Korea, Uganda, Egypt, Bolivia, Oman and Iran, but they are not appropriate for Thailand. Not an efficient model. Also, the private sector would have a much easier time say NO to the army officers, and government moochers, looking for free tickets. 1 Link to comment Share on other sites More sharing options...
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