Thai airline Kan Air says it plans to file a lawsuit against the Civil Aviation Authority of Thailand for defamation after the regulator named it as one of four airlines in financial trouble.
Somphong Sooksanguan, president of Kannithi Aviation Co, operator of Kan Air, said CAAT going public over its finances is unethical and is likely to damage its reputation.
CAAT director Chula Sukmanop also named City Airways, Asian Air and Jet Asia Airways as carriers under financial pressure.
The airlines’ operating licenses are under threat as the regulator looks to shore up safety gaps which led to a downgrading of Thai aviation.
"Debt is part of doing business, but my question is was the money we owed such an enormous amount by industry standards to suggest a financial disaster? The answer is no," Somphong said.
Somphong said CAAT’s public disclosure so far hasn’t affected operations and it has never had a poor safety record or failed to pay its employees on time.
