You are here

Thai Air says could sell assets to cover 2015 losses

Friday, March 6, 2015 - 19:21
nabmTHAIAIRWAYS.jpg
Thai Airways International PCL will sell some of its 15.5 billion baht (US$481 million) of non-core assets to cover any losses this year due to one-off hits for cutting its fleet and workforce, the company's president said on Friday.

[BANGKOK] Thai Airways International PCL will sell some of its 15.5 billion baht (US$481 million) of non-core assets to cover any losses this year due to one-off hits for cutting its fleet and workforce, the company's president said on Friday.

A sharp drop in fuel costs should return Thailand's troubled national carrier to operating profit in 2015, but that may not be enough to compensate for the costs of restructuring, the company's President Charumporn Jotikasthira told Reuters in an interview. "We have our holdings in other companies, we have land, hotels, these are non-core assets we can sell if we need to," he said.

The company expects to take a charge of around 5 billion baht in 2015 as it seeks voluntary staff cuts through early retirement. It will also book impairment costs for reducing its fleet, although Mr Charumporn declined to detail how much this could be.

The slide in international oil prices alone should save Thai Airways around 16 billion baht in fuel costs in 2015, he said.

REUTERS

Powered by GET.comGetCom