Thai Airways International Pcl, seeking government aid after a record loss last year, plans to delay taking delivery of two Airbus SAS aircraft to next year to preserve cash.

“Liquidity is the key for us now,” Pichai said. “Profit is the second priority.”

The state-owned airline plans to cut costs by 5 percent this year by delaying fleet expansion and other expense-saving measures, Pichai said. The carrier has sought government help, abandoned employee bonuses and cut flights to survive the global recession, which has also forced rivals, including Singapore Airlines Ltd., to cut capacity.

Thai Air had a loss of 21 billion baht (US$583.1 million) last year, compared with net income of 4.4 billion baht the year before, it said last month.

The carrier ran into a liquidity crisis in the fourth quarter of last year after antigovernment protests shut the company’s main hub of Suvarnabhumi airport for eight days, stalling traffic.

Pichai said Thai Air now needs to seek as much as 15 billion baht to run its business this year, down from 34 billion baht it said was needed in January. In addition, the carrier plans to refinance 7 billion baht of loans, which fall due in October, and will meet more than 10 banks this month, Pichai said. Thai Air has about 140 billion baht in debt.

Prime Minister Abhisit Vejjajiva Tuesday said the government will consider Thai Air’s restructuring plan, and the consolidation of Bangkok flights at Suvarnabhumi airport. The relocation would save 600 million baht annually, President Narongsak Sangapong said on March 6.

Source: Bloomberg