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UPDATE: SET suspends trading of Thai Airways shares

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UPDATE: SET suspends trading of Thai Airways shares | Thaiger
PHOTO: thaivisa

UPDATE:
Trading in Thai Airways shares was suspended by the Stock Exchange of Thailand this afternoon after auditors declined to sign off on its financial statements for the six months to June 30. Auditor Deloitte Touche Tohmatsu Jaiyos said it couldn’t reach a conclusion on the statements due to issues including a lack of liquidity and debt defaults, which created “material uncertainty” and may affect the value of assets and liabilities.

ORIGINAL STORY:
Embattled, bankrupt Thai Airways suffered about 28 billion baht in losses for the first 6 months of this year, mainly attributable to the Covid-19 pandemic, which has seriously impacted its operations and crushed global travel, grounding fleets and shuttering many airlines altogether. The airline’s acting president said today that the pandemic has led to many countries, including Thailand, closing their borders and imposing lockdown measures, including travel restrictions, resulting in substantial reductions in both domestic and international travel. Thai Airways, he said, has had to reduce its flights in line with reduced passenger loads.

For the first quarter of this year, Charnsin Treenuchagron disclosed that the beleaguered national flag carrier and its affiliated companies recorded 38 billion baht in consolidated revenues, a 23.7 billion baht drop year-on-year, largely due to the drastic reduction in passengers and freight. Expenses for the same quarter amounted to 42.6 billion baht, about 8 billion baht, or 15.8% lower last year, resulting in a loss of 22.7 billion baht.

In the second quarter, the Covid-19 pandemic intensified, affecting air travel worldwide, forcing the Civil Aviation Authority of Thailand to ban all incoming flights temporarily, said Charnsin, adding that Thai Airways was forced to completely suspend operations temporarily.

Despite the incoming flight ban, in place since early April and renewed several times already , he added that the airline continues tightening its belt to maintain its liquidity and operates charter and repatriation flights, disclosing that the number of passengers for the first half of the year had dropped 98.6%, to around 80,000.

For the second quarter, the carrier earned 2.5 billion baht in revenue, compared to 40 billion baht last year. Voluntary reduction of salaries by the management and staff for April through December have reduced the company’s expenses for the second quarter to 16.1 billion baht, about 67.4% lower than last year.

SOURCE: Thai PBS World

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3 Comments

3 Comments

  1. Avatar

    Rinky Stingpiece

    Saturday, August 15, 2020 at 12:41 am

    If places like Qatar and Dubai can act as hubs and sell tickets, surely Bangkok can do the same?
    Obviously Qatar is well placed geographically to be a hub; and Swampy is in the top 20 in the world. People seem to have flown to and from Spain without problems at the airport. It is possible.

  2. Avatar

    Toby Andrews

    Saturday, August 15, 2020 at 11:36 am

    This Thai airway should be out of business. They have defaulted on $3 billion debt, yet certain Thais are determined to milk the dying cow to the finish.

  3. Avatar

    Mike Frenchie

    Saturday, August 15, 2020 at 10:26 pm

    Thai Airways will need a package of +/+ 100 billion THB to clear some debts and replenish the bank account. The refusal to sign off the accounts is because there is a “going concern issue” (not enough cash in the bank and positive to value the assets at historical value (versus liquidation value).
    They are loosing 5 billion THB per month and Thai banks have a serious exposure… (Thai banks will get most of the rescue package).
    The package was valued at 60 billion THB in Q3 2019 when everything was going right… and their 13 billion THB in the bank (end of June 2020) will last till end of September.
    Very interesting time ahead…

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The Thaiger joins forces with Masii to bring you hassle-free Thailand re-entry packages and much more

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The Thiager and its sister company Tadoo, have announced they will enter a strategic partnership with the Bangkok-based fintech company, Masii.

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The Thaiger joins forces with Masii to bring you hassle-free Thailand re-entry packages and much more | News by Thaiger

“We can provide everything you need to enter Thailand hassle-free and within 12 hours, which is the fastest in the market.” Says Maxwell Meyer, CEO of Masii.

Covid-19 has drastically accelerated the industry’s movement toward shifting products and services online.

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Tadoo, The Thiager’s sister company, has also teamed up with Masii on their Thai price comparison platform, tadoo.co, which offers a similar range of products including, insurance, finance, internet, and mobile.

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The Thaiger joins forces with Masii to bring you hassle-free Thailand re-entry packages and much more | News by Thaiger

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Aviation authority calling for 20,000 vaccine doses for crew, ground staff

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Aviation authority calling for 20,000 vaccine doses for crew, ground staff | Thaiger
PHOTO: Christian Junker on Flickr

The Civil Aviation Authority of Thailand is calling for vaccine doses to protect around 20,000 airline crew and ground staff before the country re-opens to international tourists. The CAAT says it’s vital that those working in the aviation industry are protected and has submitted its request to the Centre for Covid-19 Situation Administration.

According to Suthipong Kongpool from the CAAT, there are around 20,000 airline employees, including crew and ground staff, who will need to be vaccinated. As 2 doses are required, a total of 40,000 doses are needed to fully protect staff. The Bangkok Post reports that the CAAT will meet on Thursday to review the aviation sector’s readiness for when the country re-opens without international arrivals having to quarantine.

Suthipong says they are seeking enough vaccine doses to protect employees of Thai-registered carriers.

“It’s a confidence-building measure for tourists and those providing the services to them.”

From July, the southern island of Phuket will be the first part of the country to waive quarantine for vaccinated international arrivals, subject to 70% of local residents being vaccinated. The “sandbox” project is a pilot programme that will be expanded to other areas if it proves successful. Between October and the end of the year, 5 other provinces – Phang Nga, Surat Thani, Krabi, Chon Buri, and Chiang Mai – are expected to adopt the programme. Officials hope to be able to re-open the country fully from January 2022.

According to the CAAT, the first foreign visitors expected to return to Phuket will be Chinese tourists, given that country’s success in managing the pandemic. Meanwhile, the CAAT says Thailand will see a 7% increase in air traffic this month compared to last, with a total of 36,150 domestic and international flights.

SOURCE: Bangkok Post

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Labour union angry over changes to Thai Airways staff contracts under rehab plan

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Labour union angry over changes to Thai Airways staff contracts under rehab plan | Thaiger
PHOTO: Wikimedia

Union representatives are questioning changes made to the employment terms of Thai Airways staff as part of the national carrier’s debt-restructuring plan. The labour union claims the changes have removed or diluted several staff entitlements and welfare benefits, pointing the finger at acting president, Chansin Treenuchagron, who signed the orders.

The union is calling on the Department of Labour Protection and Welfare to review the changes to check if they align with a debt-restructuring plan submitted to the Central Bankruptcy Court. According to a Bangkok Post report, the union believes the signed orders may go against the terms of the rehab plan currently being reviewed by creditors. They include an order related to the company’s new organisational structure, as well as the screening of workers who will continue to be employed by the carrier during and after the rehab process.

Union representatives accuse the airline of changing the terms and conditions of employee contracts, meaning weaker welfare benefits. They are asking the DLPW to confirm if the changes comply with the 1940 Bankruptcy Act, the 1975 Labour Relations Act, and the 1998 Labour Protection Act. The union says that if the changes are found to violate the acts, Chansin should be ordered to cancel the orders and draw up new employment terms that comply with the airline’s rehab plan and with employment law.

SOURCE: Bangkok Post

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