By Chayut Setboonsarng and Panu Wongcha-um
BANGKOK (Reuters) - Thai Airways International PCL (BK:THAI) aims to seek a 58.1 billion baht ($1.80 billion) emergency loan to maintain liquidity and see it through a coronavirus-induced drop in demand, showed a document from the airline detailing its plan.
The proposed bridge loan, guaranteed by the Ministry of Finance, was approved on Wednesday by a committee chaired by Prime Minister Prayuth Chan-ocha and will be put to Cabinet for final approval as early as next week, a person involved in the decision to seek the loan told Reuters.
Thai media has reported the airline was seeking a multi-billion baht loan. The document seen by Reuters reveals the carrier's detailed plan for the first time.
After the loan, the money-losing national carrier will raise 77.04 billion baht in capital by issuing new shares around November, and use the proceeds to pay off the loan plus interest and maintain liquidity, the document showed.
Thai Airways had no immediate comment when contacted by Reuters. The document's authenticity was confirmed by two people involved in the decision to seek the loan, who declined to be identified as they were not authorised to speak with media.
Thai Airways was already facing financial trouble before the coronavirus outbreak, having reported losses since 2017.
The national carrier suspended flights in March as travel demand slumped, with governments worldwide imposing restrictions on movement to slow the spread of the novel coronavirus. Its president then resigned after less than two years in the job.
Thai Airways, which marks its 60th anniversary this year, will receive the emergency funds gradually based on operational plans, said one of the people.
The plan also includes reducing the number of aircraft to 84 from 103 by 2024 and the types of aircraft to six from seven.
Southeast Asia's second-largest economy stands to lose 1.3 trillion baht, mostly in the tourism sector, due to the virus which has infected more 3.13 million people globally.