The Civil Aviation Authority of Thailand (CAAT) has rescinded the registration of debt-ridden Business Air's only aircraft, said Chula Sukmanop, CAAT chief, meaning the airline must find a new plane within a month or lose its operating licence.
It is the agency’s second move in a week to tighten supervision of small troubled airlines after it suspended the operations of Asian Air, a small Thai-owned, full-service airline, following an order from the Central Bankruptcy Court to freeze the airline's assets.
"We are probing its [Business Air's] balance sheet now. If it is found unhealthy financially to operate, we will revoke its air operator licence,” Mr Chula told the Bangkok Post.
Business Air's operations were suspended on Jan 16 after it was unable to settle debts estimated at one billion baht. The abrupt suspension left 700 passengers stranded at South Korea's Incheon airport. Hundreds of other tourists who were about to depart Suvarnabhumi airport for South Korea also had their flights cancelled.
The airline then lodged a complaint with the Administrative Court, which granted it the right to resume operations pending a final ruling on its debt burden. The now-defunct Department of Civil Aviation had urged the airline to meet aviation safety standards before continuing its flights.
The airline, whose company name was changed to Intira Airlines Co Ltd last June from Business Air Centre Co, has paid-up capital of 400 million baht. In the latest revenue filing to the Ministry of Commerce, the airline reported net sales of 3.97 billion baht with net profit of 57.4 million baht in 2013.
Despite its total revenues of 3.98 billion baht in 2013, the company only had 4 million baht in cash and bank deposits, but 400 million baht in debts, its financial statement shows.
Business Air officials could not be reached for comment.