Indonesia needs friends. So why is it picking fights?
Recommended: Thailand's flagship carrier. Earnings for Oct. to March 1997 fell 12% from the same period a year ago because of higher fuel costs, a stronger U.S. dollar and lower ticket prices, even though capacity utilization improved. But lower fuel prices are expected to bolster the airline's profit in the second half. The firm's cost and income structure should protect it against the risk of a baht devaluation. Stripping out depreciation charges, 70% of THAI's pre-tax expenses are fixed in foreign exchange while 76% of its revenues are in hard currencies. As the Asian partner of the world's largest airline alliance, Star, THAI's international business is also protected from currency turbulence.
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