Thai airlines have their hands out for an extra 8.8 billion baht

The Cabinet approved loans totalling 16 billion bath on March 26 for 7 Thai airlines who had endured a negative impact, or a complete collapse, from the Covid-19 pandemic. Yesterday reports out of the aviation industry say that the number of airlines looking for government aid for low-interest loans is now up to 24.15 billion baht.

A total of 8 airlines have joined together to apply for the loan by sending a letter to the Ministry of Finance looking for a raise in the original loan. The airlines are as follows…

• Thai Lion Air, 3.75 billion baht.
• Bangkok Airways, 4,5 billion baht.
• Thai AirAsia, 4,5 billion baht.
• Thai AirAsia X, 3 billion baht.
• Thai Smile, 1.5 billion baht.
• Nok Air, 4 billion baht.
• NokScoot, 3.5 billion baht.
• Thai Vietjet Air, 900 million baht.

The airlines have asked for an interest rate of 2% for a period of five years to repay the loans, with the first payment of principal and interest scheduled for January 2021. They claim that they need the government loans to keep their businesses afloat and retain the services of over 30,000 Thai employees.

The airlines also say they need the government to pay the first 25% of the total loan within tis month.

SOURCE: The Nation