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Thai Air Falls to 16-Year Low After Seeking Funds

 

Jan. 19 (Bloomberg) -- Thai Airways International Pcl, the nation's largest airline, fell to a 16-year low in Bangkok trading after seeking emergency loans from the government to resolve a cash shortage.

 

The state-controlled carrier needs to borrow as much as 19 billion baht ($544 million) and aims to have a plan in place by next month, Chairman Surachai Thansitpong said today in Bangkok. Its stock slipped as much as 6.5 percent to 6.45 baht as of 2:44 p.m., the lowest intraday price since July 1992. The company has fallen 80 percent in the past year.

 

Thai Air expects its first loss in 45 years in 2008 after anti-government protesters shut down Bangkok's main airport for eight days from Nov. 25, stranding about 400,000 travelers during Thailand's peak tourism season. Sales this year have fallen as much as 30 percent, Surachai said.

 

Some people are afraid Thai may be issuing new shares or increasing capital,'' said Raenoo Bhandasukdi, an analyst at Capital Nomura Securities Pcl in Bangkok, who has a ``Buy'' rating on the stock. ``Still, because the company is state-owned, we believe the government can guarantee its loans.''

 

The carrier previously raised 10 billion baht, which is enough to fund operations until March, Surachai said.

 

The Bangkok airport closure may cost the carrier about 19 billion baht in lost sales and cancellations.

 

More money is needed ``as soon as possible,'' Raj Tanta- Nanta, vice president for investor relations, said by phone today. ``Sooner is better than later.''

http://www.bloomberg.com/apps/news?pid=20601080&sid=aVUqV2or3mYM&refer=asia

 

 

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Thai Air expects its first loss in 45 years in 2008 after anti-government protesters shut down Bangkok's main airport for eight days from Nov. 25, stranding about 400,000 travelers during Thailand's peak tourism season. Sales this year have fallen as much as 30 percent, Surachai said.

 

They should never been able to close the airport ..now pay the price for stupidity..

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