ASEAN KEY DESTINATIONS
Thai ministry to dilute shares in THAI Airways
The ministry would sell a stake of 0.04 percent to the Crown Property Bureau, THAI president Piyasvasti Amranand said yesterday.
He did not elaborate but insisted the transaction would have no impact on the carrier's operation, as it would still be a state enterprise in practice.
THAI management has been pushing to end state enterprise status to give the airline greater flexibility in setting and executing strategy in the face of heavy competition in the aviation industry.
As a state enterprise, THAI is subject to a number of regulations including government supervision of its annual investment plans, executive appointments and salary structure.
Dr Piyasvasti also said the ministry's share sale would not have any bearing on the airline's 200-billion-baht-plus plane procurement programme.
The procurement did not require a ministry loan guarantee and funding costs would be based on the airline's credit rating, he added.
Jamsri Sukchotirat, acting head of the THAI labour union, said the union remained opposing to turning the airline from a state enterprise to a private company.
Members agree the carrier needs to be freed of red tape to make it more flexible and competitive.
Areepong Bhoocha-oom, the Finance permanent secretary, said the ministry had not yet finalised the amount of THAI shares to be sold, adding the new government would have to approve the sale
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