Pattaya helicopter service leaves for Phuket

Coolman Corporation left Pattaya City after its helicopter tour service failed to attract tourists. But the company has been doing well in Phuket with European tourists who are more keen on aerial services in tourism. Coolman had been offering visitors aerial views over Pattaya and its satellite islands since August of last year.

The company turned to chartered flight service after the flying tour met only 20% of the target, said Ms Thippawan Nimvong, Coolman’s station manager in Pattaya. Liquidity problems forced the company to leave the service in the eastern tourist resort city, she said.

Coolman offers tourists a 20-minute flight over Phuket Island, viewing the beauty of its excellent locality and the deep-blue water of the Andaman from the sky. The charge is Baht 2,400 from each of 8 adult passengers, and Baht 1,000 per child. A chartered flight costs Baht 60,000 per hour, said Ms Thippawan.

Asian tourists in Pattaya turned their backs on the helicopter service. The company plans to come back to Pattaya when the economy starts to pick up. The Japanese-made choppers are powered by Kawasaki machines with first class guarantee in safety and experienced pilots.

Company to start anti-car theft service via satellite

Automatic Business Group, a market leader in anti-car theft technology, plans to start a "via satellite service" in the third quarter this year. The new service, which would help car owners locate stolen vehicles in provinces and remote areas, would help wipe out rings of car thieves in Thailand, said Mr. Viboon Vongsilvatana of AB Co.

AB Group, in cooperation with the US Audio Vox Co., has invested Baht 9 million to start the satellite project code-named ABT-Z. The service would locate a stolen car and then halt its engine by remote command. The car would be retrieved later by the company’s team, said Mr. Viboon.

The company, which sells alarms and anti-theft devices for cars, has had nearly 100% growth in sales, from Baht 80 million in 1998 to Baht 150 million this year, despite the economic crisis. New products would be introduced to the market, said Mr. Viboon.

Devices being sold include those by Rakon and ABT. Baht 15 million has been allotted to implement social projects, to promote sales in 1999.

Ministry sets monthly export target

The Commerce Ministry said the kingdom hopes to send products worth US$4.8 billion to world markets each month to help spur the economy. The target has been set as the ministry has watched the country’s exports begin to expand early this year.

According to Permanent Secretary of Commerce Mr. Somphol Kiatpaiboon, a recent rise in imports has reflected a rise in exports. The ministry has found that imports rose by about 6 percent in value in the first 2 months this year after 18 months of slowdown. Imports of capital goods and raw materials for production for exports have sharply risen, said Mr. Somphol.

If exports meet the monthly target in the remaining 10 months, a growth of between 3.6-3.7% could be achieved, said Mr. Somphol. To meet the target, exporters must be fully assisted with low-interest loans and packing credits, while new markets be explored, he said.

Exporters agree that a stable baht is far more important than a weaker or a stronger baht; exports by Asian countries also started to pick up this year; those in Korea have a positive growth, from a -39% slump last year; ‘Exports Summit’ early this month is successful, the ministry always ready for assistance.

Canadian investor agrees to take Datamat

Capital Alliance Group, an investor in information technology from Canada, has agreed to bail out the debt-ridden Datamat Plc and would majority-own the company. Datamat share holders will meet at the end of the month to approve a restructuring plan in which the company’s share value would be reduced to one-eighth.

According to Datamat’s managing director Manu Oradeedolchet, Capital Alliance Group would restructure outstanding debts of the company which have accumulated a loss of several million baht in the past few years. The Canadian group has expertise in IT Trading and has run a franchise in China, said Mr. Manu.

The group will hold about 75% in a new share structure of Datamat and the company would still maintain its business line in IT trading and a solution integration providing, said Mr. Manu. Restructuring of Datamat would probably last into the end of the year due to a long procedure in the Stock Exchange of Thailand, he said.

Datamat informed SET of the negotiations late last month. The Canadian group is also an IT software developer. Datamat has been in close cooperation with IBM (Thailand) in Thailand’s IT market.

Here comes electronic pet Furby

Hecker Meyer (Thailand) is to launch the "Furby" electronic pet here next month, aiming to sell 10,000 sets of the cuddly, electronically speaking toy in coming months. The electronic device, said to be more popular than the Japanese-made Tamagotchi two years ago, has been a best-selling item in the US for months.

Hecker Meyer said it was authorized by the US manufacturer Hazbro Co. to be the sole distributor of Furby in Thailand for 3 years. Loft department store chain said earlier that it would introduce Furby to the Thai market and has had about 400 bookings since.

Furby the Pet first appeared in the US market last November before it entered Japan, France, the Netherlands and Germany. Hazbro Co. hopes to sell 4 million sets of Furby this year, including about 10,000 sets in Thailand, said a Hecker Meyer source.

Notes: The expensive hi-tech toy aims to attract upper-scale teens. The first Furbies will be available in leading department stores on May 12. The company is to launch a number of new toy items in the next 2 months, including new Superman and Star Wars characters.

Muang Thong Thani likely venue for 2nd BOI Fair

The government and office of the Board of Investment will soon decide on the venue for the next exhibition on trade and industry, the second by BOI since 1995, which is scheduled in February next year. Muang Thong Thani has become the most likely choice for its vast area which is easy to get in and out of.

Muang Thong Thani has outdone Thammasart University’s Sport Complex as the most suitable place for the exhibition. Organizers anticipate one hundred thousand visitors and up to 10,000 vehicles each day to visit the fair. Thammasart compound is narrower than that of Muang Thong Thani, though both places hosted sports events during the 13th Asian Games late last year.

BOI officials said the first BOI Fair in Laem Chabang, Chonburi, in 1995 caused traffic chaos along Sukhumvit and Bang Na-Trad roads. To that regard, Bangkok International Trade and Exhibition Center on Bang Na-Trad was not preferable as a third choice as venue for the second fair, they said.

Up to 600-700 exhibition booths are expected to join the trade fair; BOI sees a recovery in 2000; Minister of Prime Minister’s Office Abhisit Vejachiva said a decision on the matter of place to be made soon; Muang Thong Thani has offered a specially low rental rate.

Mazda Sales (Thailand) becomes sales unit under Ford

Mazda Sales (Thailand), with its long history with Thailand’s Sukhosol family in making and selling Mazda cars in Thailand, has become a sales unit under Ford’s operation in Thailand. The company, earlier taken over by Mazda Motor Corporation of Japan, has gained a new status which is equal to that of a selling arm of Ford Operation (Thailand).

According to industry sources, MST is to move its office from Mahachai road to Lake Ratchada Tower on Ratchada Pisek Road on May 1, ending its long-time independent unit. Both FST and MST are now ready for close cooperation in marketing and selling Ford and Mazda vehicles in the Thai market, said the sources.

Ford is reportedly to downsize the Mazda operation in Thailand in order to cut costs. The restructuring plan would inevitably involve some layoffs, as MST would share many parts of operation with FST, said the sources. The two marketing arms would directly report to Ford Operations (Thailand), they said.

Notes: Mazda does not have to shoulder costs in stocking parts. Mazda Motor Corp last month took 93% of shares in Mazda Sales (Thailand) of Sukhosol family.

Contractors rush for multi-billion baht road projects

Major contractors are set to compete for two road construction projects recently approved by the cabinet worth Baht 44.5 billion. The 5-year construction plan of the two projects, the Bang Yai-Ban Pong Motorway and the southern ring road extensions, is scheduled to start next year.

Foreign contractors, which include France’s EGIS Projects Asia Pty and Germany’s Belfinger Berger, were among the first ones to ask for more information from the Department of Highways, said department sources. Local contractors - Ch Karnchang, Christini Neilsen (Thai) Plc and Italian-Thai Development Plc - also join the query, they said.

The 50-kilometer, Baht 17-billion motorway project from Bang Yai, Nonthaburi, to Ratchaburi Province is to ease mounting traffic congestion along south-bound roads. The construction cost of the new motorway is Baht 12 billion while the balance is for land appropriations, said the sources.

The southern ring road extensions were divided into parts. The new ring road is to connect south of Bangkok directly with the eastern part.

The cabinet is to mull a new bridge project across the Chaophraya since the earlier planned under-water tunnel project is much more costly. Baht 3.7 billion in loans were sought from OECF to fund the bridge project.

Major golf courses in hands of creditor banks

Major banks have recently adopted tough measures to relieve the NPL burden and golf courses, which failed to service their debts, have been targeted. At least 3 major courses were taken in the past few months. A few golf courses have fallen into foreigners’ hands while several others are still trying to sell their costly places.

Bangkok Bank Plc recently stepped into Noble Place Golf Course and Country Club, which was formerly owned by Noble Holding Co. The Baht 1 billion project in Ban Bueng District of Chonburi Province used to be one of the most favorite places amongst golfers in the boom days. Noble Place ran into financial problems after the economic bubble burst.

Siam Commercial Bank recently took over the 27-hole Phoenix Golf and Country Club in Banglamung, Chonburi, while Bank of Ayudhaya took Khao Kheow Golf and Country Club in Sri Racha. The two courses cost between Baht 1-12 billion each, said industry sources.

Other courses in financial difficulty: A Singaporean group recently bought about 20% of Laem Chabang International and Country Club. A foreign investing group reportedly took over Phuket’s Blue Canyon Country Club. River Kwai Golf is still looking for foreign saviors. Panya Group proposes to sell Panya Park Golf Club in Suvin Thavong. In all, about 20 courses have been put on sale.

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Created by Andy Gombaz, assisted by Chinnaporn Sangwanlek.