Pattaya Daily News

10 February 2009 :: 06:02:03 am 24381

Thai cash-flow problem short-term, solvable

CHON BURI, Feb 9 -- The cash-flow problem of the country‘s national carrier, Thai Airways International (THAI), has resulted from a number of problems which the airline can solve itself as the number of international tourists visiting Thailand during the current peak season is projected to pick up, according to State Enterprise Police Office director-general Areepong Bhoocha-Oom.
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THAI’s short-term debts coupled with earlier spiraling oil prices, global economic recession and the closure of Suvarnabhumi international airport by anti-government demonstrators in late November and early December last year have depressed the cash-flow of the airline, Mr. Areepong said.

These are short-term problems which can be solved internally by THAI staff, he said. Much of the previous political turbulence in Thailand has started to improve and is no longer apparent, and the present government has a clear policy to revitalise tourism, and persuade more foreign tourists to visit Thailand, Mr. Areepong said.

THAI’s shrinking revenues as much as 20-30 per cent late last year  should be considered normal business, he said, but THAI staff must work together to solve its buisiness challenges.

“It’s still not too late to attract a large number of foreign tourists to visit Thailand as before if THAI could make its ticket fares more competitive, lower costs and prepare improved flight plans,” he suggested.

Mr. Areepong said THAI may need short-term borrowing to solve its cash-flow problem. Insiders expected that solutions to the airline’s problems could be found this week, Mr. Areepong added.

Permanent Secretary for Transport Surachai Tansitpong said earlier that THAI is planning to borrowing of Bt29 billion on the long term from domestic financial institutions to refinance short-term loans which have matured. (TNA)

Reporter : PDN staff   Photo : Internet   Category : Tourism News

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