Thai airlines to seek $491m government bailout

Seven Thai airlines are likely to seek a 16b baht bailout from the Finance Ministry so they can pay their employees while their services are suspended. The carriers are Thai AirAsia, Thai Lion Air, Nok Air, Bangkok Airways, THAI Smile, Thai VietjetAir and Thai AirAsia X. Tassapon Bijleveld, executive chairman of Asia Aviation (AAV), the largest shareholder of Thai AirAsia, said the airlines had jointly decided to seek financial aid in the wake of the Covid-19 outbreak. Most international and domestic flights have been suspended in Thailand since last week. In negotiations with the Finance Ministry expected Monday, the airlines hope to secure a financial package, such as long-term loans, to boost their liquidity and get subsidies on payroll. "All airlines are tightening their belts during this tough period. Thai AirAsia is still keeping its employees, but has had to cut their wages by up to 30%. Even though we are doing our best, Thai AirAsia will only be able to survive for three months if there is no financial injection," Tassapon said.<br/>