Thai PM agrees to bail out seven airlines

The Thai government has promised to inject 24b baht in soft loans to help bail out seven domestic low-cost airlines, while demanding in return that the airlines retain their 20,000 staff throughout the Covid-19 crisis. Executives from the seven airlines yesterday submitted a petition to PM Prayut Chan-o-cha seeking the bailout from the government. They also requested an extension in excise tax reductions for jet fuel -- from 4.762 baht to 0.2 baht -- for one more year. The Finance Ministry had previously waived excise taxes on jet fuel and reduced the excise tax reduction to 0.2 baht, but the cut expires at the end of next month. Other costs waived or reduced include surcharges for aviation, passenger fees, parking fees and international departure fees. Government spokesman Anucha Burapachaisri said Gen Prayut told the airline executives that the government will soon look for solutions to assist their companies, recognising that aviation, which plays a significant role in the Thai economy, has been drastically affected by the coronavirus pandemic. "The Centre for Covid-19 Situation Administration plans to relax various measures for aviation and domestic tourism," Gen Prayut said at the meeting. Gen Prayut asked for cooperation from airlines to curb price competition and encouraged them to focus on competing to offer better services and improving financial management to settle debts. He asked operators to keep their staff employed while the government seeks solutions. The seven airlines whose representatives were present at the meeting were Thai AirAsia and Thai AirAsia X, Bangkok Airways, Nok Airlines, Thai Smile Airways, Thai Lion Air and Thai Vietjet Air.<br/>