THAI’s board gives nod for B23 bln loans, picks new president
The board of directors of financial ailing Thai Airways International Plc (THAI) yesterday gave green light for the national flag carrier to borrow a total of 23 billion baht from four domestic banks and to appoint former Energy Minister Piyasvasti Amranand as the new president of the airline.
THAI’s chairman Ampon Kittiampon told a news conference that the board of directors had approved the loans of five billion baht from the Government Savings Bank as proposed by the airline’s Funding Committee while the committee would also proceeded with additional loans of eight billion baht from Bangkok Bank, five billion from Kasikornbank and the other five billion from Siam Commercial Bank.
Dr.Ampon said the combined 23 billion baht in loans, with five-year repayment period and the interest rates of 5-5.5 percent a year, will be used for restructuring short-term debts and improving liquidity of the national airline.
Moreover, he said, the airline also plans to seek foreign loans worth 14 billion baht for the procurement of eight Airbus A330 aircraft and is still in the process of negotiating with foreign financial institutions.
In addition, the board of directors yesterday appointed Dr.Piyasvasti Amranand, who was the country’s Energy Minister from October 2006 to February last year, as the 15th president of the airline to replace his predecessor Flg. Off. Apinan Sumanaseni, who had resigned in early January.
The board also approved the appointment of Sathit Limpongpan, permanent secretary for finance, as a member of the board to replace Suparat Kawatkul, the former secretary for finance who was recently found guilty of disciplinary violations.
The national carrier posted a net loss of 14.8 billion baht in the October-December quarter of last year but returned to a net profit of nearly 7.87 billion baht in the first quarter of this year.
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