BANGKOK – Thai Airways International said Wednesday that it was raising more than $1 billion in financing, double what it announced just two days before.
Narongsak Sangapong, acting president of the airline, the Thailand national carrier, had said Monday that it was looking for 19 billion baht, or $540 million, in loans from state-owned banks. At the time, he denied reports in Thai newspapers that it needed as much as 35 billion baht to maintain its cash flow.
But the airline said Wednesday that it was raising 39 billion baht. It said it had completed a bond sale worth 5 billion baht Tuesday, issued to a few institutional investors to support its cash flow, and was now looking for 34 billion baht on top of that in loans from financial institutions: 19 billion baht for working capital and 15 billion baht for refinancing short-term loans.
"We may need less funds if passenger traffic is back to normal faster than expected," the airline said.
The airline’s shares have fallen more than 12 percent over the past week because of concerns about the company’s health. Reports of the problems in the Thai news media pushed the airline’s shares to 6.35 baht, the lowest level since they began trading in 1992.
But they rallied slightly to 6.50 baht in early trading Wednesday, with investors heartened by reports that the government would help state enterprises find loans to solve cash flow problems. The airline is majority-owned by the government.
"We need the funds as soon as possible," said a Thai Airways official, who asked to remain anonymous because he was not authorized to speak to the media.
Analysts have downgraded the airline recently, citing the weak outlook for tourism because of the global economy and the impact of political unrest in Thailand.
Anti-government protests closed the two main Bangkok airports for a week last year.
"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. "It also doesn’t help that their management is in a bit of turmoil right now."
The airline is drafting a restructuring plan, which could be put to the board in February.
Earlier this month, Thai Air said it had agreed with Airbus to postpone payments for six A330 aircraft, and it subsequently said it would try to delay delivery of the A330s, scheduled for later this year.
