Thai Airways set for privatisation

The sell-off has been delayed since 2001

The Thai government's long-awaited privatisation of its national airline Thai Airways will go ahead in November.

The government said it would reduce its stake in the airline from 93% to 70%.

The privatisation will seek to raise 15 billion baht ($360m; £220m) by offering 300m new shares to the public.

The funds raised will be spent on Bangkok's planned new international airport, and to buy new planes.

Higher profits

Thai Airways' privatisation has been delayed since the end of 2001 by unexpected events such as the war in Iraq and the Sars outbreak.

But the airline said it still expected to beat last year's profits, despite the Sars virus crippling travel to Asia earlier this year.

"We are confident that net profit of this year will be better than last year," said the airline's board member Somchainuk Engtrakul.

In the first six months of its financial year ended March 2003, Thai Airways made a profit of 8.3bn baht, compared with a profit of 10.18bn for the whole of the previous financial year.