Empty aircraft fly from Bangkok

Thousands of passengers have been stranded by the protests

About 40 empty planes have flown out of Bangkok’s international airport after authorities reached a deal with protesters camped there for seven days.

Thousands of travellers have been stranded since anti-government groups took over two airports last week.

The deal allows a total 88 planes to be flown out to other Thai airports, where it is hoped they can evacuate some of the blockaded tourists.

The crisis has economically damaged the country since it intensified last week.

Thailand’s deputy premier for economic affairs is reported to be meeting senior figures in commerce, industry and tourism today to discuss the damage being done.

As the backlog of stranded foreigners grows with each day, foreign embassies are beside themselves with frustration.

Foreign airlines

A spokeswoman for Airports of Thailand said: “Thirty-seven aircraft have left Suvarnabhumi (international airport) since the first aircraft of Siam GA (a regional airline) took off on Sunday evening.

“International airlines will have to contact us to take those stranded aircraft out of Suvarnabhumi.”

Twelve planes belonging to foreign airlines are stranded at Suvarnabhumi, as well as 29 from Thai Airways, 16 of Thai Airasia, 15 from Bangkok Airways, and 22 aircraft from other airlines.

With thousands of British citizens among the estimated 100,000 travellers, a spokesman for the UK’s Foreign Office said: “Bangkok’s two main airports remain closed but airlines have been able to arrange flights and transfers to and from alternative airports.

“Some British nationals have been able to fly out but not in the necessary numbers.

“We have continued our consultations with airlines and Thai authorities…and action is being stepped up to enable people to travel in greater numbers, for example via Chiang Mai.”

Chiang Mai, in the north, is 700km (435 milies) by road from Bangkok, while the other option – Phuket, a resort in the south – is 850km (530 miles).

France has said it will send a “special plane” to fly its citizens out of Thailand on Monday, with “those in the most pressing situations…given priority,” AFP news agency reported.

Air France-KLM has already said it would fly travellers out of Phuket.

A few airlines have been using an airport at the U-Tapao naval base, about 140km (90 miles) south-east of Bangkok.

On Sunday more than 450 Muslim pilgrims stranded at the international airport were taken by bus to the base where they were to board a plane for the annual Hajj in Saudi Arabia.

Spain and Australia have been arranging special flights to evacuate their citizens.

Thailand’s tourist industry is losing an estimated $85m (£55.4m) per day, and the government warns that the number of foreign tourists arriving next year may halve, threatening one million jobs.

The protesters from the People’s Alliance for Democracy (PAD) are a loose alliance of royalists, businessmen and the urban middle class.

They opposition want the government to resign, accusing it of being corrupt, hostile to the monarchy and in league with exiled former Prime Minister Thaksin Shinawatra.

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US GDP rebounds with 3.3% growth

Tax rebates have encouraged consumers to spend more

The US economy grew at a revised 3.3% annually in the second quarter of 2008, the Commerce Department said, much higher than its first estimate of 1.9%.

The rebound was linked to strong US exports, helped by the weak dollar, while government tax rebates also boosted consumer spending.

GDP grew at a rate of 0.9% in the first quarter, after a 0.2% contraction in the last three months of 2007.

The Federal Reserve has warned the economy will remain weak this year.

“While we’re not out of the woods yet, maybe we’re beginning to see some sunlight,” said John Wilson, equity strategist at Morgan Keegan.

“At some point, the market will begin to look through the trough and gauge the strength of the coming upturn.”

‘No recession’

The data showed that exports grew at an annualized rate of 13.2%, higher than the government’s initial estimate of 9.2%.

Imports fell at a rate of 7.6% as the US economic slowdown reduced demands for goods made overseas.

The improved trade balance added 3.1 percentage points to second-quarter GDP, the biggest since 1980.

The slowdown in the housing market was evident, as builders cut back and businesses reduced their spending.

Consumer spending, boosted by the government’s $600 tax rebate payments, rose by 1.7%, slightly higher than the previous quarter’s 1.5%.

Some observers said that the figures lent support to the argument that the US was not heading for a recession.

“For a recession the economy is certainly growing very quickly,” said Avery Shenfeld, senior economist at CIBC World Markets.

“A lot of that growth is driven off exports and pessimists might say that can’t continue during slowing growth overseas.

“But I would say this happened precisely during the period of slowing growth overseas … this is still an economy that faces slow times but not a recession.”

16-year low

However recent data on the US housing market suggests a grim outlook for the sector.

US house prices were down a record 15.4% in the April to June quarter compared with a year ago, according to a closely-watched report released earlier this week.

The decline was recorded by the latest S&P/Case-Shiller survey of US national home prices.

The report said the fact that the falls were nationwide was the latest sign the US housing downturn is continuing.

Separate government data said sales of new homes were at an annual rate of 515,000 units in July, up slightly from June, but still near a 16-year low, and half the rate of new home sales one year ago.