Pairach Pornpattanangkul, Chief Executive Officer of Asia Aviation Public Company Limited, or AAV, disclosed that the company was able to maintain its on-time flight operations standard even during the flood crisis by sourcing and booking hotels near Don Mueang Airport for volunteer staff, along with arranging two rounds of pickup truck shuttles, both from flooded homes to the hotels and from the hotels to Don Mueang for flight-shift duties. As for the bonds due for repayment this November, the company has already prepared a new bond issue to replace them, with average circulating cash in its accounts of approximately 1 billion baht, and has backup plans including credit lines from commercial banks and sale-and-leaseback transactions for aircraft. For the fourth quarter, the company expects clearly accelerating operating results from the tourism season, with roughly more than 50 aircraft ready for service out of a total fleet of about 60, after sending some for scheduled maintenance during the third-quarter low season. Meanwhile, the passenger load factor remains at an average of nearly 80% or higher, and ticket prices tend to rise by an average of 2,000 baht, in line with high-season pricing mechanisms and rising global jet fuel costs, which have climbed to a level of 170 to 180 US dollars per barrel.
Asia Aviation Public Company LimitedCompany prepared a new bond issue plus bank credit lines and sale-and-leaseback backup to repay November-maturing bonds, easing refinancing risk.
