Bangkok Airways Replaces CEO Fined for Securities Fraud

Thai regional airline Bangkok Airways has formally appointed Puttipong Prasarttong-Osoth, the carrier’s long-standing president, to serve as new CEO and vice chairman, effective January 24, the company announced on Thursday. Puttipong replaces his father, 85-year-old Thai business tycoon Prasert Prasarttong-Osoth, who resigned on January 21 after Thailand’s Securities and Exchange Commission (SEC) fined him and two other people for manipulation of the airline’s share price. According to the SEC and the Stock Exchange of Thailand, Prasert, his daughter, Poramaporn Prasarttong-Osoth, and his executive secretary, Narumon Chainaknan, traded Bangkok Airways’ shares continuously from November 13, 2015, to January 12, 2016, matching the trading orders among themselves while concealing their activities and thereby misleading the public regarding the share price and trading volume of the airline.

On January 18, the securities watchdog ordered the trio to pay civil penalties amounting to a combined $15.7 million within 14 days of the issuance of the notifying letter. The SEC also barred Prasert, Poramaporn, and Narumon from holding executive positions in Thai-listed and securities issuing companies. Prasert, who has vowed to fight the charge, has since stepped down from his posts as vice chairman of Bangkok Airways and CEO and chairman of Bangkok Dusit Medical, Thailand’s largest private hospital operator. Poramaporn has also vacated her position as chief operating officer at Bangkok Dusit.

Prasert, ranked by Forbes as Thailand's eighth-richest man, currently owns an 18.4 percent stake in the medical group and a 10.6 percent share of Bangkok Airways. He also owns major shareholdings in Nonthavej Hospital Plc and Samui Airport Property Fund Leasehold.

Poramporn holds a 6.49 percent share in the airline, while Narumon owns less than 2 percent of shares in the carrier. According to Bangkok Airways, its largest shareholder is Puttipong, who holds 24.9 percent, followed by his sister and company board member, Ariya Prasarttong-Osoth, who owns 11.59 percent. Combined, the family owns a controlling share of 53.6 percent of the airline.

Bangkok Airways’ fleet consists of 4 ATR 72-500s, 11 ATR 72-600s, 16 Airbus A319s, and 9 Airbus A320s.