THAI won’t borrow from Government Bank to strengthen liquidity

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BANGKOK, Sept 10 — National flag carrier Thai Airways International (THAI) will not ask the Government Savings Bank (GSB) for a loan to increase its liquidity, according to a senior THAI executive.

Areepong Bhoocha-oom, acting chairman of the airline’s executive board, said THAI did not need to borrow from GSB this year because improving ticket sales for the fourth quarter, its available credit lines and postponing delivery of two aircraft from this year to the middle of next year.

He said that earlier THAI had planned to borrow Bt7 billion from GSB but 78 per cent of tickets were reserved for the high season.

Cost-saving measures together with the rising ticket sales and the aircraft delivery postponement would allow THAI to have enough cash and credit lines for its operations until March.

Mr Areepong denied that the GSB had rejected its borrowing request.

He said THAI would have to borrow next year to procure the aircraft.

Operational results in the last two months of this year would tell how much THAI would have to borrow next year, he said.