Thai Airways International (TG, Bangkok Suvarnabhumi) former executive, Banyong Pongpanich, has voiced his support for the total privatization of the heavily indebted airline. Speaking to the Bangkok Post, the now CEO of Phatra Security Plc warned that the state-backed airline could not go on given heavy local and international competition as well as a lack of technocratic know-how on the carrier's board.
To remedy the situation, he proposed the total privatization of the airline which, though painful, would eventually lead to the birth a of a viable company.
"It has been proven that state enterprises cannot compete with the private sector. There are examples from several airlines. After undergoing privatisation British Airways (BA, London Heathrow) was able to fully recover," he said.
Banyong also warned that the airline's parlous state of financial affairs - THB56billion (USD1.736billion) in operational liquidity against THB250billion in longterm debt - could land it in serious difficulties in the next six months should no adequate measures be taken to resolve the problem.
Despite being a parastatal, the carrier has not received any financial backing from the national fiscus, he added.
On Monday, April 21, airline CEO Chokchai Panyayong told a board meeting that Thai would exceed its projected first quarter net loss by THB30million (USD0.93million) on the back of civil unrest in the country.
Bangkok has been forced, in recent months, to deny reports about Thai's alleged impending bankruptcy. For its part, Thai has gone on record as saying that it has adequately budgeted for its debt repayments and has yet to default on any dues owed.
