No soft landing for troubled THAI

The clock is ticking for loss-ridden THAI as it seeks a much-needed lifeline from the government or risks becoming another chapter in the history of national flag carriers to go bust, with the lives of about 21,000 employees hanging in the balance. The outcome for Thailand's financially beleaguered flag carrier is set to be unveiled by the end of this month, as Transport Minister Saksayam Chidchob said THAI must submit a rehabilitation plan within May if it wants the government to consider a rescue package. THAI plans to seek short-term loans worth 54b baht to finance operating expenses as it undertakes a rehabilitation plan. In exchange for the loans, the carrier is obliged to follow through on a rehabilitation plan to be approved by the cabinet. The obligations include cost management such as an early retirement scheme. But the amount is not the full bailout sum, as a further 80b baht capital increase is needed afterward for the rescue plan. The government is ready to back a rescue package for THAI, but it will entail a full restructuring and there will be no second chance, PM Prayut Chan-o-cha has said. The State Enterprise Policy Committee has already submitted the restructuring proposal, which would be forwarded to the Transport Ministry for consideration. It will have to be scrunitised further before being forwarded to the cabinet for approval. Suwat Wattanapornprom, an analyst at Asia Plus Securities, said the company's equity base, registered at 11.7b baht as of year-end 2019, is not enough to cover operating losses this year.<br/>