Govt rejects Thai Air rescue plan, warns of consequences if no March approval

Bangkok

THAI Airways International has been losing more money even though tourism to Bangkok, Phuket and Chiang Mai is setting records. Thailand's government just warned executives to finally fix the operations or face consequences.

The national carrier's woes include too much debt, an inability to fill seats and price competition from full-service rivals including Emirates and budget airlines such as AirAsia. Investors have sent shares of Thai Airways down 32 per cent this year, while the Stock Exchange of Thailand Tourism & Leisure Index, a gauge of hotel operators, has gained 14 per cent. Airports of Thailand Pcl, which operates most of the nation's airfields, has advanced 8.5 per cent.