A total of eight Thai carriers are seeking loans worth 25 billion baht (US$770 million) from the government to support their businesses during the COVID 19 pandemic, according to the chairman of Thai Air Asia.
The eight airlines will negotiate the terms of the proposed assistance, which includes loans worth 25 billion baht with a 2per cent interest rate that can be paid off over five years starting in 2021, Thai AirAsia Chairman, Tassapon Bijleveld, who has been speaking on behalf of the group, told media on Friday.
The eight airlines included, Bangkok Airways , Thai AirAsia, Thai AirAsia X, Thai Lion Air, Thai Vietjet Air, Thai Smile, NokScoot and Nok Airlines , local media reported.
The package will provide liquidity for the airlines, Tassapon said, adding that they were looking for a 6.25 billion baht disbursement, worth a quarter of the credit facility, to begin this month.
However, further discussions with the government were required.
State-owned Airports of Thailand said that it expects passenger traffic to drop 53per cent for the fiscal year ending in September and had begun offering discounts for airlines.
A separate negotiation for the government to provide liquidity support the flag carrier, Thai Airways is ongoing.