THAILAND REMAINED locked in its worst political crisis in decades last night as prime minister Somchai Wongsawat dismissed the country's police chief and thousands of protesters maintained their grip on Bangkok's two commercial airports.
The capital was awash with rumours of an imminent coup while protesters occupying the airport said that they would fight to the end to achieve their aim of removing the prime minister from office.
The political crisis in Thailand has been going on for three years, but it took a more dramatic turn when the opposition began what it called a "final battle" this week, storming Suvarnabhumi international airport on Tuesday and taking over the smaller Don Muang domestic airport a day later.
No explanation was given as to why the chief of police, Pacharawat Wongsuwan, was moved to an inactive post in the prime minister's office, but there was speculation that it was because he had not succeeded in negotiating an end to the crisis.
The government has pledged to resolve the crisis by peaceful means amid reports of a police build-up around the airport. However, there was no sign late last night of any police or paramilitaries on the roads leading to Suvarnabhumi airport.
Both the government and opposition are waiting to see what the army will do. A move by the military would be Thailand's 19th coup, or attempted coup, in 76 years of democracy. The military intervened to stage a coup in September 2006 to depose former prime minister Thaksin Shinawatra after months of protests by the alliance.
The army commander, Gen Anupong Paochinda, has called for Mr Somchai to quit and to hold a snap election, but it has not made any decisive moves, saying that the army was in no position to heal what is effectively a huge national rift.
Pro-government forces have threatened to take up arms if the elected administration is ousted, raising fears of major civil unrest.
The People's Alliance for Democracy is a loose coalition of interest groups, including the Bangkok elite, royalist businessmen, academics and activists. It has suspected links to the military and also has support from Thailand's revered royal family. Queen Sirikit attended the funeral of an alliance supporter killed in clashes with police.
While the focus of the protests is on removing Mr Somchai, the alliance's real anger is directed at Mr Thaksin, Mr Somchai's brother-in-law, whom the opposition believes is behind Mr Somchai. Mr Thaksin is in exile, a fugitive from a conviction for violating a conflict of interest law. The opposition accuses him of gross corruption and abuse of power.
Thailand's plight highlights the minimal influence of Mr Thaksin and of Mr Somchai and his government in the capital.
The opposition took over the prime minister's office three months ago, forcing Mr Somchai to operate out of the old VIP lounge at the Don Muang airport. Since the protesters took over the airport he and his government have been forced to decamp to the northern city of Chiang Mai, 700km north of Bangkok.
This is Thaksin country, home to the "red" contingent, which enjoys popular support but is accused of being corrupt and of breaking electoral rules to garner support. Mr Thaksin and his party are popular with the poor and in rural areas, and a snap election is likely to result in the party being returned to power.
This puts the opposition, the "yellow" camp, in a dilemma. They claim the government buys votes in the countryside, making false promises to make sure it wins.
The political unrest has unnerved the stock market and badly hit Thailand's key tourism industry, even in a country long used to dealing with recurring political instability. Hotel workers in Bangkok complain vociferously about Mr Thaksin, but get even more irate when they consider the damage done to their livelihoods by the occupation of the airport.
Thai economists quoted in the Nation newspaper said the deepening political crisis would take an additional toll on the economy, which is already set to suffer from the global economic recession.
The tourism sector is said to be gearing up for mass lay-offs early next year.
Thousands of tourists have been stranded in Thailand and the government yesterday began shuttling many of them by bus to U-Tapao, a Vietnam war era naval airbase 150km east of Bangkok.