Why don’t Thais want to save Thai Airways from coronavirus tailspin?

Thailand’s national carrier is seeking a US$1.81 billion loan from the government, but the public is not so keen

Poor performances, financial mismanagement and alleged corruption have weakened trust in what was once the ‘pride of the nation’

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Thai Airways is encountering coronavirus-fuelled turbulence. Photo: Kyodo

Published: 2:00pm, 15 May 2020Updated: 10:44am, 16 May 2020

Public opposition is mounting to a rescue package for Thai Airways, as the 60-year-old airline struggles to find an exit route from coronavirus-fuelled financial turbulence.

Like many of its regional counterparts, Thailand’s national carrier has been hit by a double whammy of reduced demand due to the Covid-19 pandemic and the culmination of years of competition from low-cost rivals.

In response to the crisis the state enterprise is reportedly seeking a 58.1 billion baht (US$1.81 billion) loan, guaranteed by the Ministry of Finance which owns 51 per cent of the company. However, the rescue plan has not been finalised and Transport Minister Saksayam Chidchob said this week the airline would submit a revised proposal by the end of May. This has raised speculation that it could file for bankruptcy, though Prime Minister Prayuth Chan-ocha has said all rescue options are to be considered first.

Supporters of the plan say it is vital to offset the loss of tourism revenue facing an economy that is already predicted to shrink by more than five per cent this year. The Tourism Authority is predicting between 14 and 16 million foreigners will visit the country in 2020, down from 39.8 million in 2019.

But critics say the company should not rely on taxpayers’ money to fix problems that allegedly include mismanagement and corruption.

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“The public mindset is that this is not a national carrier, but an organisation that is a burden on our taxes,” tweeted one Thai. Another complained that while ordinary Thais had to queue for hours to claim a 5,000 baht cash handout from the government it “tenders the money to Thai Airways unconditionally”.

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