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  1. #1
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    tomcat's Avatar
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    Sinecures in Danger

    ...every politician's brother-in-law will need a new job...

    Gov't to lose majority Thai Airways share in restructuring

    BUSABA SIVASOMBOON
    Associated Press May 19, 2020, 6:10 PM GMT+7




    • Thailand Thai Airways


    A Thai Airways jet sits on the tarmac at the Suvarnabhumi Airport in Bangkok, Thailand, Tuesday, May 19, 2020. Thailand's Cabinet has approved reducing the government's shareholding to under 50% in Thai Airways International, the nation's ailing flag carrier as part of a reorganization plan to be submitted to bankruptcy court. (AP Photo/Str)

    Bangkok (AP) — Thailand’s Cabinet has approved a reduction in the government’s stake in financially troubled Thai Airways International to under 50% as part of a reorganization plan to be submitted to bankruptcy court.

    The airline will lose its status as a state enterprise with the reduction in the 51% share held by the Finance Ministry.
    Thai Airways is carrying an estimated debt burden of almost 300 billion baht ($9.4 billion). It ran up losses of 12 billion baht ($374.3 million) in 2019, 11.6 billion baht in 2018 and 2.11 billion baht in 2017.

    The Transport Ministry will submit a list of prospective business rehabilitation planners for Prime Minister Prayuth Chan-ocha to choose from, Saksayam announced at a press conference after the weekly Cabinet meeting. The planner will be responsible for drafting a plan to be submitted to the Central Bankruptcy Court within a year.

    The plan will also be submitted to U.S. courts, Saksayam said, a standard practice for big multinational companies.
    The airline initially sought a 54 billion baht ($1.7 billion) bailout loan from the government after virtually ceasing operations due to the coronavirus crisis.

    It is not clear when its flights will resume. The government last week extended to the end of June a ban on arrivals on international passenger flights, ruling out their immediate resumption.

    “This is the time for Thai Airways to be x-rayed to see what mistakes they have made and correct them,” Saksayam said. “The prime minister helped the firm once in 2015. And if Thai Airways had strictly followed the plan, we should not be here today.”

    The airline went a partial restructuring in 2015, when Prayuth was serving a first term as prime minister in a military government established after a coup. The airline was already deeply in debt and needed to cut loss-making routes, reconfigure its fleet and get rid of staff through attrition.

    It is almost certain to cut staff, fleet and flights under any new reorganization plan.

    The airline was founded in 1960 as a joint venture between Thailand’s domestic carrier, Thai Airways Company, and SAS, Scandinavian Airlines System, which sold its stake in 1977. The airline’s shares were listed on the Stock Exchange of Thailand in 1991.
    Majestically enthroned amid the vulgar herd

  2. #2
    Custom Title Changer
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    Quote Originally Posted by tomcat View Post
    The Transport Ministry will submit a list of prospective business rehabilitation planners for Prime Minister Prayuth Chan-ocha to choose from
    There's a surprise....

  3. #3
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    Pretty easy prediction but for the record I'll state my view that THAI will never ever turn a profit unless it is managed privately and without government influence, and that's not going to happen with this proposal.

  4. #4
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    No government subsidised airline should be permitted to carry passengers internationally since this undermines competitiveness and prejudices corporate owned airlines operating on economic principles involving the need to make a profit.

    In THAI terms it is a disgrace that the taxpayer has kept that bankrupt behemoth in the air for no benefit to anyone except those who were rewarded with nugatory jobs on the grounds of good service to cronies.

  5. #5
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    THAI will never make a profit as long as it's used a Hi-so international taxi service freebie, or even as a 'Grab'-type food courier for one special person.

  6. #6
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    It was decades ago the last time I flew long haul on Thai. I remember that I was looking forward to it, only to be disappointed by the offhand, disinterested cabin crew. Never used them again.

  7. #7
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    Exactly my experience about six years ago when we returned from a trip to Blighty. It coincided with another purge on costs and I think the cabin staff were a bit demoralised by it but even so, their abrupt and peremptory service verged on the bloody rude and at the end of the flight I had great pleasure in telling the purser I was never using them again. And I haven't.

    Their later brush with the CAA over safety protocols and inaccurate or incomplete maintenance records simply confirmed my low opinion of them was indeed valid .

  8. #8
    Thailand Expat jabir's Avatar
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    Quote Originally Posted by BoganInParasite View Post
    Pretty easy prediction but for the record I'll state my view that THAI will never ever turn a profit unless it is managed privately and without government influence, and that's not going to happen with this proposal.
    No Thai gov believes THAI could be run efficiently without its control, interference, generous freebies and kickbacks, while our current gov is no more clued in than its predecessors; imho they should do what they do best, march to drums and vanquish make believe enemies to infect the people with peace and happiness.

  9. #9
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    //www.nationthailand.com/business/30388241​6.000 Thai Airways staff to be laid off.

  10. #10
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    this is what happened when ministers and hiso government employees abused the resources of a private firm

    it would be interesting to find out why so much debt was accumulated in 2019 and 2018,

  11. #11
    Thailand Expat jabir's Avatar
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    Not for a moment suggesting there might be crooks in public office, but the more available the easier it becomes to share out.

    Or something like that.

  12. #12
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    ...the foxes guarding the hen house are out of work...

  13. #13
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    A fuller discussion of the issue is not possible.

  14. #14
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    Quote Originally Posted by Seekingasylum View Post
    No government subsidised airline should be permitted to carry passengers
    Many use airplanes from government subsidised manufactures. Are they to be included?

  15. #15
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    The simple fact is that whatever other abuses were going on, Thai aiways got shite, and expensive shite at that. I have not used them for international travel for more than a decade. There were simply just better and cheaper alternatives.

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