16 BUSINESS/PROPERTY
THE PHUKET NEWS
FRIDAY, JUNE 8, 2012
Kingfisher dives deeper into red Agence France-Presse
I Phanason’s latest offering: The Park in Patong.
Phanason to launch 426-condo project DEVELOPER PHANASON of Bangkok has released details of its latest Phuket project, The Park, on Nanai Rd in Patong, which will go on sale from July 5 to 15. The project consists of 426 condos in seven blocks, each of seven floors, and plainly has the foreign as well as the Thai market in mind, with marketing material emphasising the project’s “sweeping views of the Andaman Sea”. Si zes ra nge f rom 40 square-metre studio apartments to 62-square-metre two-bedroom units with two bathrooms, living area and kitchenette. Common facilities will
include a shopping centre, a swimming pool with attached whirlpool bath, a sauna and a children’s playground. The large lobbies in each building will have communal seating areas with cable TV. Free WiFi connections will be available in the lobbies and around the pool Prices start at B1.99 million for the studio apartments. A company spokesperson declined to reveal the prices of the larger units. Prices will, however, include builtin furniture, wallpaper and air-conditioning. Deposits will start at B10,000. For details call 076 345-675 or 076 345 679.
ndia’s cash-strapped Kingfisher Airlines – the airline that just won’t die – posted its deepest-ever quarterly loss on May 31, hit by rising fuel costs and curtailed operations, and sending its shares tumbling to a record low. Owner Vijay Mallya is now reported to be in negotiations to sell a controlling stake in his liquor business, using the proceeds to prop up the tottering airline. The company posted a net loss of 11.52 billion rupees (B631 million) in the three months to March – a tripling of losses – compared with a 3.56 billion rupees (195 million) loss a year earlier. Sales fell about 55 per cent to 7.41 billion rupees (B405 million) for the airline, which owes millions of dollars in taxes as well as to suppliers, lenders, partners and staff. Its shares subsequently slid as much as 7.7 per cent on May 31 to a lifetime low of 10.2 rupees at the Bombay Stock Exchange. Kingfisher has scaled down
Kingfisher’s fleet has shrunk from 63 aircraft to just 22. its operations dramatically in recent months – stopping international operations completely – and now has the smallest market share among Indian airlines at just 5.4 per cent. “Kingfisher is continuing with its ‘holding plan’ of a limited fleet... to contain losses in this tough and unprecedented operating environment for the Indian aviation industry,” it said in a statement. “The company hopes to be back to full-scale operations in the next 12 months,” it added. The carrier, controlled by liquor baron Vijay Mallya, has never turned a profit since its
launch in 2005. Mallya, known as the ‘King of Good Times’ for his flamboyant lifestyle, has been lobbying hard in support of proposals to allow foreign carriers to buy stakes in Indian airlines. Foreign direct investment in aviation is seen as a lifeline to companies such as Kingfisher, which analysts believe needs up to US$600 million to survive. The government is yet to clear the proposal. Currently, foreign airlines are barred from holding stakes in Indian airlines. A quarter of Kingfisher
Photo: Sean d’Silva is owned by local banks and some have refused to lend the company more cash unless fresh capital is raised and a viable restructuring plan is presented. With the possibility of a foreign takeover stalled, the Economic Times reports that Mallya is now said to be looking at giving up control of his flagship spirits firm to brewing giant Heineken and putting the money into Kingfisher. “Talks have begun with Heineken to sell a portion of the stake,” the Economic Times reported, quoting unnamed sources close to Mallya.
Good hotel numbers TTR Weekly
PHUKET HOTELS ARE back on track, reporting stronger performance in revenue per room in April, benchmarking experts STR Global have declared. Phuket reported double-digit increases in both average daily rate (ADR) and revenue per available room (RevPAR). ADR in Phuket during April increased 18.3 per cent to B3,931.25, while RevPAR rose 25.8 per cent to B3,112.21. General performances in the Asia-Pacific region in April showed positive results in three
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key performance metrics – occupancy, ADR and RevPAR – when compared to the same month last year. The region’s occupancy increased by 3.8 points to 67.6 per cent. ADR rose 3.6 per cent to US$145 (B4,580) and RevPAR by 7.6 per cent to US$98 (B3,100). Japan showed solid signs of a comeback with Tokyo topping the performance in the three key metrics. Occupancy rose from 63 to 84.8 per cent while ADR was up 27 per cent to US$180 (B5,690) and RevPAR by more than doubled to US$152. At the other end of the scale India reported the largest decline
in ADR and RevPAR, at 24.8 per cent to US$132 (B4,173) and 27.2 per cent to US$82 (B2,624) respectively. STR Global managing director, Elizabeth Randall said: “Hotels across Asia-Pacific sustained growth in occupancy and average room rates. “Looking at supply and demand for the first four months of this year, supply grew at the lowest rate for January-April for the past six years. [It rose 2.8 per cent.] “Demand achieved the second highest growth rate for the in the past six years – 5.3 per cent – surpassed only by the demand growth in the corresponding period in 2010.”
Over the hump: Inflation is now at its lowest rate in almost three years. Source: TradingEconomics.com/Ministry of Commerce
Inflation slows to 2.53pc NNT
THAI CONSUMER PRICES rose 2.53 per cent in May com-
pared with the same month last year, an indication, officials say, that inflationary pressure will ease in the near future. The Permanent Secretary for Commerce Yanyong Phuangrach said on Friday that Thailand’s Consumer Price Index (CPI) in May stood at 115.23, up 2.53 per cent from May 2010, and up 0.39 per cent from April. The rise was induced by higher food and beverage prices and lower farm production caused by prolonged hot weather, according to the Commerce Ministry’s data. The May figure is well down on December last year
when the CPI stood at 4.2 per cent higher than December 2010. Inflation has been shrinking since, to around 3.6 in January, hovering around 3.3 in February, March and April and then falling to 2.53 in May. Mr Yanyong said that, when compared with the current economic growth trend, the latest CPI data is no great concern. He described the overall situation as “acceptable and showing stability”. The Core CPI for May (which excludes volatile commodities such as food and fuel) stood at 108.15, up 1.95 per cent year-on-year and 0.29 per cent from April.