Thai Airways International seeks funding

Thai Airways International THAI.BK is on a lookout for nearly $1 billion in funding due to the loss it suffered because of political unrest culminating in airport closure added to global recession. The air carrier said that it was looking for up to 34 billion baht ($974 million) in loans from financial institutions — 19 billion baht for working capital and 15 billion baht for refinancing short-term loans.

The shares of this primarily Govt. owned airline have fallen more than 12 percent over the past week due to concerns about the company’s health.

“Every airline around the world is facing some difficulty but Thai has particular difficulties because of the political situation right now and the fact the airport was shut down,” said Nicholas Ionides, Asia Editor of Flight International magazine, adding, “It also doesn’t help that their management is in a bit of turmoil right now.”

Acting President Narongsak Sangapong said on Monday the airline was looking for 19 billion baht in loans from state-owned banks after being hit by the week-long closures of Suvarnabhumi and Don Mueang airports by protesters late last year. The airline is in the process of drafting a restructuring plan, which could be put to the board in February.