Year 2009

 January 2009

New jet purchases imperil THAI's liquidity

POLITICS

By AMORNRAT MAHITTHIROOK

Thai Airways International's liquidity woes have partly been caused by its procurement of eight new Airbus A330-300 jets, a source at THAI said. The source said the company has cash of 11 billion baht for the aircraft. Of the total, three billion is for advance and instalment payments, five billion for engines and the other three billion for aircraft components.

The source said THAI's operations have also been affected by high fuel prices and, in particular, the shutdown of three airports - Phuket, Suvarnabhumi and Don Mueang - at times during Nov 5-Dec 4 last year, which is the peak tourist season.

According to the source, tourist arrivals have fallen due to the country's political turmoil. The global economic slowdown, volatile fuel prices and the foreign exchange rate are not significant factors causing THAI's liquidity issues.

THAI has tried to ease the problem by transferring overseas revenue into the country. This income is usually deposited with commercial banks in Singapore for foreign exchange gains before being transferred to Thailand.

The source said THAI has decided to slash its 2009 earnings projection.

According to the source, THAI has cut its estimated earnings by 50 billion baht - from 170 billion to 120 billion.

By Bangkok Post

January 21, 2009

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