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Thai Airways adds another 21.5 billion baht debt in Q3 report

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Thai Airways adds another 21.5 billion baht debt in Q3 report | The Thaiger
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Thai Airways has accumulated more losses, on top of a decade of annual losses, for the latest quarter. At the moment the national airline’s debt is four times higher than last year’s debt. The airline, already struggling, has been mostly grounded since the end of March. At the end of last week Thai Airways put 34 of its old planes up for sale (you have until tomorrow to put in a bid). 5,000 employees were also being shed in an early retirement offer under its current rehabilitation plan. It’s also selling spare parts and other random stock in its warehouse as well as leasing out part of its offices to save costs.

Acting airline president Chansin Treenuchagron says the carrier’s net loss in Q3, up to the end of September, was 21.5 billion baht. In the third quarter in 2019 the debt was 4.68 billion baht. Passenger numbers were down 92% compared to the same time last year.

The airline industry, along with all other sectors in the tourism industry, has been hard hit by the rolling pandemic. Tourism has been a key contributor to Thailand’s annual GDP, around 20% either directly or indirectly attributable to the country’s tourism industry.

The Stock Exchange of Thailand suspended trading in Thai Airways shares today after auditors refused to comment on its balance sheet to the end of last month, according to the Bangkok Post. Thai Airways shares closed yesterday at 3.20 baht, down 2.4% from the day before.

The embattled national airline remains under “financial rehabilitation” approved by Thailand’s Bankruptcy Court. Thai Airways lost its status as a state enterprise after reporting huge accumulating debt and applying for more bailout funds from the Thai government. At that time, the middle of this year, the airline had accumulated 28 billion in debt.

The airline is going to have to a lot more than selling off a few spare parts, opening pop-up cafes or offloading worn out planes to reduce its debt.

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9 Comments

9 Comments

  1. Avatar

    Mike Frenchie

    November 12, 2020 at 4:15 pm

    They need 100 billion THB of fresh money and a firm statement of the State to back them up. Without that, the ‘going concern’ valuation of the assets is challenged (you should then value like if the company is discontinued). Massive losses for the banks in sight…

  2. Avatar

    Toby Andrews

    November 12, 2020 at 4:29 pm

    Are the chief executives still drawing their salaries?
    I think so. They are still feeding off the dead cow.
    This financial rehabilitation means simply, Thai Airway will not pay any debts.
    The government owned 51 percent a few months back. They will lose, or rather the Thai people will.
    This is Thailand.

    • Avatar

      Mark Craven

      November 12, 2020 at 5:31 pm

      Yes not only them but UK will pay as well paid my flights keep ringing and say contact your agent but when they ring they will not answer..but they are selling flights for next year but refunding what you have paid never they need to sell more rice cakes and do the honorable thing pay what u owe then look to sell when you don’t owe out not give more vouchers you can’t use

  3. Avatar

    Toby Andrews

    November 12, 2020 at 10:17 pm

    I sympathise with you Mark.
    Thailand[s credibility is now rubbish.
    Liars cheats, scammers, the scum of the earth.

    • Avatar

      RA

      November 13, 2020 at 9:07 am

      Always so positive and such a shining light for all of us.

  4. Avatar

    Robert Elliot

    November 12, 2020 at 10:22 pm

    The headline is wrong. They lost 21.5 Billion Baht, they didnt add debt. Its not possible to add debt during bankruptcy. Who would lend them money?

  5. Avatar

    Hungry Farang

    November 13, 2020 at 12:23 am

    Comparing service and prices to other airlines… nobody needs Thai Airways for real.

  6. Avatar

    Khun plastic

    November 13, 2020 at 1:18 am

    Thai were a basket case anyway and it was unlikely they would survive this winter before the present crisis.
    It just hastened the demise that’s all.

    Many more airlines world wide will fail also.

    Only national government intervention can save them.

    They did have a link on there website for a few days last week for creditors to file claims against the company.

    They have satisfied the law.

    Had a small unsecured creditor such as your self filed a claim you chances of getting a refund would be close to zero anyway,same deal with UK based airlines also.

    If you have paid by credit card direct with Thai your card holder will refund you,simply ring them to make a claim.
    If you have paid direct with Thai by debit card you have lost everything.
    If you booked through an abta/atol registered UK travel agent by any means contact them and you should get a refund.
    Hope that helps you and good luck.

  7. Avatar

    harry1

    November 13, 2020 at 1:21 pm

    few options available for thaiairways,as it not viable and has become a huge liability to the banks and tax payers.it might get a short term reprieve in the international bankruptcy court due to the dire situation in world,s aviation business.but the roots problem wont go away ?

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Pattaya

Pandemic has washed away Pattaya’s “soapy” massage parlours

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While the Covid pandemic has hit Thailand’s businesses hard, it has also washed away its not-so-legal soapy massage parlours after tourism has dried up its clientele. Such places, known as glorified brothels, have left many masseuses out of work as boards have barricaded the once booming establishments.

Soapy Massage (àap-òp-nûat, อาบอบนวด, literally bath, steam, massage)…
These are the bigger massage parlours where girls are presented in the fishbowl and you get the full program (including sex) for a fixed price, depending on the girl starting from 1,500 and up to 5,000 Baht.

Only a few of the soapy services have survived the pandemic in Pattaya, with Honey Massage Parlour being one of them, according to The Pattaya Mail. After adjusting to the new requirements for social distancing, the business has re-opened on November 19. However, its largest shop has closed, once known as Honey 1 on Soi Honey, or Soi 11, the windows are dark and barricaded. Honey Inn is also up for sale.

25 year old masseuse Maywadee, says she used to work in such parlours where she would get a cut of the 1,500 to 2,500 baht fee. She says she used to see up to 7 clients a day, but now that number has been cut in half as Chinese and Japanese tourists, who were her largest group of customers have dwindled. Now, she is thinking about heading back to her home city of Chiang Mai, to sell handicrafts, as her Pattaya income has dried up.

Such parlours feature masseuses that are usually not native to the area, as many come from lower socio-economic areas such as Thailands northeastern provinces, otherwise known as Isaan. Many make the trip to tourist-driven cities like Pattaya, Koh Samui, Bangkok and others, in an attempt to make a higher salary than they would if they were back in Isaan.

SOURCE: The Pattaya Mail

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Business

Bank of Thailand takes action to curb Thai baht’s strength

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Bank of Thailand takes action to curb Thai baht’s strength | The Thaiger

The Bank of Thailand has moved forward measures, originally meant to begin early 2021, but most of which will now take effect from end of this month. The end result is that the new rules will make it easier for Thais to shuffle money overseas and invest in foreign assets. It will also make is easier for Thai citizens to hold foreign currency in local banks. The new rules will also require the registration of local and overseas bond investors.

“Following the U.S. elections and positive news on Covid-19 vaccine development, investors have turned toward investing in emerging markets, including Thailand. The situation has resulted in strengthening the baht quickly and can impact economic recovery.”

“The registration of bond investors will allow close monitoring of investor’s behaviours and thereby enable the implementation of targeted measures in a timely manner.”

Last week the Bank of Thailand assessed that the Thai baht’s recent rapid gains could affect the country’s “fragile” economic recovery. The Thai government has called on the central bank to do its best to use what tools it has at its disposal to restrain the baht to protect exports.

Khoon Goh, head of Asia research at ANZ Banking Group, says that he central bank also will continue to resort to direct intervention in foreign-exchange markets.

“The issue here is that local investors have a very strong home bias. Making it easier to invest overseas may not actually encourage them to do so.”

The Thai baht has been the 2nd best performer in Asia this month after foreign investors turned net buyers of almost $2.4 billion of bonds and stocks as appetite returns for riskier emerging-market assets amid a weak dollar, according to Bloomberg.

The Thai baht had recently rallied 8.8% from this year’s low in April, hitting a 10 month high last week.

SOURCE: Bloomberg

This morning, Thai time…

Bank of Thailand takes action to curb Thai baht's strength | News by The Thaiger

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Technology

Hotel investment group launches world’s first “green” hotel fund

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Hotel investment group launches world’s first “green” hotel fund | The Thaiger

Destination Capital, a hotel investment group in Bangkok, has announced that it will launch the world’s first ever “green” hotel fund. The fund will acquire hotels and implement sustainability systems and procedures to promote long term environmental and financial sustainability in investments using the EDGE certification programme. EDGE, an online platform, is an innovation of the International Finance Corporation, which helps property developers to build and brand “green” establishments in a fast and affordable way. EDGE is used by more than 170 countries and reportedly has kept almost 230,000 tonnes of carbon dioxide annually from entering the atmosphere.

DC’s fund, titled Descap I, is part of its efforts to acquire freehold, 4 star hotels in prime destinations all over Thailand. James Kaplan, the CEO of DC, says he sees opportunities to renovate hotels to accommodate “green” technology and systems due to the current Covid pandemic that has ravaged the tourism sector in the kingdom.

“Destination Capital’s adoption of the EDGE certification program will provide the Descap I with the opportunity to gain a competitive advantage by differentiating our products and improving carbon emissions of the hotels.”

“If there is one thing we have learned during Covid-19 it is that the environment and nature recover quickly from poor resource management practices. Our participation in EDGE will serve to encourage the hospitality industry to adopt best practices with respect to better managing our scarce resources, raise broader consciousness about global warming and stem the tide of environmental degradation. We will implement operational elements to reduce water consumption, reduce waste emissions, reduce electricity use, and to the best of our ability eliminate plastic usage.”

Descap I, is a Thai Private Equity Trust. The company partners with Private Equity and Institutional Funds to source hotel acquisition opportunities and manage assets in the Asia Pacific region, turning its main focus to Thailand.

SOURCE: Pattaya Mail

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