THAI gives cautious OK to Nok Air plan

Although Nok Air shareholders on Wednesday endorsed a new round of capital injection needed for a business rehabilitation almost unanimously, strong<br/>doubts emerged over whether Thai Airways International (THAI), a major shareholder, would go along in the end. While THAI's representatives raised their hands at the meeting to support the 1.7-b-baht infusion, Somchai Sujjapongse, the permanent secretary of the Finance Ministry, a major THAI stakeholder, sounded a wary note. Somchai said that if THAI's decision to take part in Nok Air's new fund-raising proves unproductive for improving Nok Air's plight, then "somebody has to be responsible". He said that the ministry is still studying whether THAI's subscription to new Nok Air shares -- numbering 245m and valued at 367.5m baht -- is a viable one. Somchai's comment came ahead of Wednesday afternoon's THAI board meeting, where the issue was expected to be tabled. The result of the THAI board meeting was undisclosed at press time. An airline spokeswoman said there would be no announcement after the meeting. Over the past few days, acting president Usanee Sangsingkeo and other senior THAI executives had talked about the flag carrier's inclination to go along with the capital increase at Nok Air for the sake of retaining THAI's 21.57% stake. They said THAI would agree to come aboard in view of a clearer business turnaround plan and prospects of Nok Air returning to the black next year after suffering combined losses of 4.93b baht from 2014 to June 2017.<br/>