A proposed start-up second carrier has faced extensive delays, as the result of domestic political debate over the extent of foreign investment. It will for the first time open up competition against flag carrier Thai Airways International.
Thailand's Council of Economic Ministers is to limit foreign ownership to a maximum of 15%, with no single international airline allowed more than 5%. Some ministers want the ceiling raised to 20%.
It further stipulates that the new airline must have the support of a minimum of three Thai investors, each allowed to hold up to a 40% maximum stake. The airline will have minimum paid-up capital of Bt3 billion ($119 million).
The airline's owners will be required to offer to the public 30% of its stock "as soon as possible". In return, the carrier will be protected for its first five years from any additional national start-up carrier.
Thailand has two domestic operators, Bangkok Airways and Orient Express Air, both of which are likely to bid for the number two spot. Thai has 90 days to respond.
Source: Flight International
