Thai Airways to Get Emergency Line of Credit to Continue Operations
Thai Airways International will need a 7 billion baht ($219 million) loan from the government in order to stay in business, sources revealed over the weekend. The airline is the flag carrier of Thailand.
Thailand’s Ministry of Finance has asked the Government Savings Bank to lend the funds without collateral to the airline, according to a report in the Bangkok Post.
The bank’s chairman, Somchai Sajjapongse, told the Post that the bank will need to “consider the purpose of the loan, as well as Thai’s repayment capability and rehabilitation plan to minimize our risk.”
Earlier in August, the airline announced a restructuring plan after sustaining a large loss in the second quarter. Thai Airways also lost 12 billion baht in 2013.
Thai Airways, a Star Alliance member, was founded 1988 and has its hub at Suvarnabhumi Airport, also known as Bangkok Airport.
(Photo: Accura Media Group)