Seven locally operated airline businesses will receive soft loans worth 24 billion baht from the government to help them counter the impacts of the coronavirus pandemic, Prime Minister Prayut Chan-ocha said on Friday.
The PM made the promise during a meeting with representatives from seven airlines, including Thai AirAsia, Thai AirAsia X, Thai Smile Airways, Thai Lion Air, Thai Vietjet Air, Bangkok Airways and Nok Air.
Tassapon Bijleveld, executive chairman of Asia Aviation, the largest shareholder of Thai AirAsia, told reporters after the meeting that the PM had agreed with the airlines’ proposals. The proposal includes a soft loan budget worth 24 billion baht for the seven airlines to payback within five years.
The PM said the details on the soft loans will be provided by the Ministry of Finance, and should be available for the airlines by October.
Other proposals include the lowering of operation costs, such as parking and landing fees – other service charges are currently being discussed by the Minister of Finance.
Thai Airways International, the country flagship carrier, was the first to have filed for a business rehabilitation request with the Central Bankruptcy court in May. The loss-making state-owned enterprise has accumulated more than 240 billion baht in debt thus far.
This was then followed by Nok Air at the beginning August, as their debts have accumulated to 26.79 billion baht as of March 31.
Thailand’s entry ban for tourists due of the coronavirus pandemic is still intact as the State of Emergency has been extended until the end of September.
Because of the nationwide lockdown, the country now expects only 8 million foreign visitors in 2020 – compared to nearly 40 million in 2019.
The PM said this week that the country could be welcoming back foreign tourists with a limited number of arrivals, starting with a pilot project in Phuket. He did not specify how many tourists will be allowed in the country, or when.
Passenger demand in Thailand is expected to drop by 53 per cent year-on-year in 2020, according to the International Air Transport Association, contributing to a loss of revenue worth at least US$8.4 billion for the industry.