Thai Airways International (THAI) remains in a financial crisis as it has been unable to increase revenue and reduce costs, the Bangkok Post quoted a member of the State Enterprise Policy Commission as saying.
Thaweesak Koanantakool, who heads a sub-committee evaluating state enterprise solutions, said that following a recent meeting with the THAI Board to discuss progress in the financial
rehabilitation of the airline, he is concerned that the national carrier remains in critical condition.
Widening financial losses
The airline, 51% owned by the Finance Ministry, had planned to cut costs by 10%, or about THB10 billion (US$281 million), but managed only 2 million baht. “If this continues, it will not survive,” Thaweesak said.
In August, Thai Airways reported a second- quarter loss of THB12.8 billion (US$378 million), widened from a loss of THB7.7 billion in the year-earlier quarter.
Weakness in cargo demand was a major factor
Thai’s cargo volume was down almost 23% year-on-year in the quarter, dwarfing the 9.3% decline in capacity. Cargo yield dropped 6.6% and load factor fell 10 points to 58.3%.
As part of an overall restructuring programme, the carrier exited the freighter business earlier this year and disposed of its two Boeing 747-400 converted freighters.
Nol van Fenema