The volatile jet fuel price, domestic political conflict leading to the closure of Don Mueang and Suvarnabhumi airports and the global economic crisis has contributed to the company’s currently tight liquidity. However, as part of the overall plan to ease liquidity, THAI has completed a Private Placement (PP) debenture offering totaling 5 billion, with 3/5/7/10 year durations. THAI also plans to raise 15 billion baht to replace its existing short-term borrowings and another 19 billion baht to bridge the liquidity tightness for 2009.
However, the liquidity shortfall maybe reduced if travel demand is back to normal sooner than forecast.