THAI's proposed TAA stake puzzles experts

A proposal for THAI to buy a 20% stake in Thai AirAsia (TAA) has raised a few eyebrows amid questions over whether the deal would bring any benefit to THAI. Veteran airline executives and industry analysts have described deputy prime minister Somkid Jatusripitak's suggestion as odd and incomprehensible. Several critical questions have emerged about the brainchild, such as whether THAI really needs to acquire shares of the Thai arm of AirAsia in order to achieve the objective Somkid floated at a Feb 17 meeting held to promote Thai tourism. First, THAI, along with its 2 sister carriers -- fully owned THAI Smile and Nok Air, in which THAI has a 39% stake -- has far more extensive networks and flights relative to TAA. In fact, THAI's affiliated carriers already cover, with few exceptions, cities that TAA serves in the region. <br/>