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Thai carrier to increase capital next year, president says
Bangkok (dpa)

Thai Airways International (THAI) will need to increase capital next year to cope with its ‘‘weakened’’ financial circumstances, the national carrier’s new president said Monday.

‘‘An increase in capital is unavoidable,’’ THAIpresident Piyasvasti Amranand told a press conference on his first day in the job. Piyasvasti noted that THAI’s current debt to asset ratio was 3:1, and short-term debt was higher than long-term debt, making a share issue necessary early next year.

The new president said his first priority was to turn around the airline’s finances. THAIsuffered a loss of 21.3 billion baht (647.8 million dollars) last year, blamed partly on high oil prices. The airline will also continue to cut costs and try to improve its services in an effort to become one of the world’s top five airlines within five years, Piyasvasti said. ‘‘We must continue to cut costs, radically improve our operational performance and enhance the efficiency and returns of every division within the airline,’’ he said.

He promised, among other things, to discourage the practice of THAIexecutives sitting in first-class seats and other privileges enjoyed by the management and staff. Management of THAI, which is 51 per cent government-owned, has been subject to political influences in the past.

‘‘When I agreed to take the presidency here, I knew I would face a lot of headaches, because THAI is subject to a lot of outside and inside influences,’’ Piyasvasti said.
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