BANGKOK (NNT) – The President of Thai Airways International Public Company Limited (THAI) has confirmed that there is no lack of liquidity and that the company has sufficient cash flow to operate its business as usual.
THAI president Sumeth Damrongchaitham confirmed that the company has continually managed and supervised debt reduction since 2013, although it still has to carry out the rehabilitation plan in the midst of intense competition in the aviation industry. The company has been able to reduce its debt by approximately 48 billion baht.
The company has also prepared a report on the status of its debt and reported on the movement of loan balances on a monthly basis, as well as its annual performance, to supervising agencies, such as the Ministry of Transport, the Ministry of Finance, and the Office of Public Debt Management, which have acknowledged its reports without any observations.
The plan for 32 billion baht in new borrowing in fiscal year 2020 is aimed at allowing the company to support its investment and refinance or for use it as a working capital and for normal operations and maintenance of equipment. The said budget does not include aircraft procurement, which is awaiting approval from relevant agencies.
The 32 billion baht is close to the amount of the debt plan of the previous year. As of the end of June this year, THAI’s revolving credit line accounted for 13.4 per cent of the total projected revenue for the year. This indicates that the carrier still has adequate cash reserves to operate as usual.