THAI downplays financial health concerns
Concerns mount after B6bn in losses reported
published : 4 Oct 2019 at 17:02
writer: Thodsapol Hongtong
Thai Airways International Plc's (THAI) president has insisted that the national airline has no liquidity problems after Deputy Transport Minister Thaworn Senneam on Thursday expressed concerns about its financial health.
According to Mr Thaworn, the airline reported a loss of well over 6 billion baht in the first half of this year alone and he feared that the company may be in danger of running up net losses of well over 10 billion baht by year-end.
THAI president Sumet Damrongchaitham on Friday said that the company's cash flow is sound and business was operating as usual. The company strictly adhered to its debt management plan and reduced debts by 48 billion baht.
He said the airline regularly informs the Finance Ministry and the Public Debt Management Office (PDMO) of its financial health and both agencies have acknowledged its reports without expressing any concerns.
As for the company's loan request of 32 billion baht for the fiscal year 2020, he said the loan is earmarked for investment and working capital and does not include the airline's 156-billion-baht aircraft procurement plan.
Citing records as of June this year, he said the company's cash and revolving credit line account for 13.4% of revenue estimates, which are sufficient for operations.