Prime Minister Srettha Thavisin has instructed the Finance Ministry to expedite the national carrier’s rehabilitation plan, so it can be relisted on the Stock Exchange of Thailand (SET) by the end of this year, a ministry source said.
The original plan was for Thai Airways International Plc (THAI) to make a comeback on the stock market in around April or May next year.
Srettha’s instruction was motivated by THAI’s satisfactory performance thanks to profits earned from asset sales and positive business results, the source said. This was due to increased tourist arrivals to Thailand, improved exports, huge employee layoffs and salary restructuring, which allowed the airline to cut down on costs substantially, the source said.
“THAI’s early return to the SET will also liven up the Thai stock market,” the source said. “Besides, the government wants to see THAI managed by a new board of directors, and not the rehabilitation management committee as is the case today.”
The source added that a normal executive board would allow more flexibility in running the national carrier.
The Finance Ministry is THAI’s largest shareholder, with a stake of almost 48%. According to the source, the ministry’s shareholding would be reduced to 40% so the airline is not considered a state enterprise by legal definition. If it is a state enterprise, the airline will be bound to relevant rules and regulations, undermining its competitiveness in the highly competitive aviation industry, the source said.
