16 Billion baht bail out for Thai Airlines

On March 26, the Cabinet approved loans totalling 16 billion baht for 7 of Thailand’s airlines that had experienced a detrimental impact or a complete failure due to the Covid-19 pandemic.

Yesterday, reports from the aviation industry suggest that the number of airlines requesting government assistance for low-interest loans is now as high as 24.15 billion Baht.

A total of 8 airlines have joined forces to apply for a loan by sending a letter to the Ministry of Finance requesting an increase in the original loan.

The airlines are as follows…

• Thai Lion Air, 3.75 billion baht.
• Bangkok Airways, 4,5 billion baht.
• Thai AirAsia, 4,5 billion baht.
• Thai AirAsia X, 3 billion baht.
• Thai Smile, 1.5 billion baht.
• Nok Air, 4 billion baht.
• NokScoot, 3.5 billion baht.
• Thai Vietjet Air, 900 million baht.

The airlines negotiated an interest rate of 2% for a period of five years to repay the loans, with the first instalment of principal and interest scheduled for January 2021.

They say that they need government loans to keep their companies afloat and to maintain the services of more than 30,000 Thai employees.

The airlines also state that they need the government to pay the first 25% of the total loan within the next month.

SOURCE: The Nation

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