By Nopporn Wong-Anan
BANGKOK (Reuters) - Thai Prime Minister Somchai Wongsawat was banned from politics for five years and his party disbanded on Tuesday, spurring exultant anti-government protesters to end their blockades of Bangkok's airports.
Government party members will switch to a new "shell" party
already set up and they said they would vote for a new prime minister on December 8, setting the stage for another flashpoint in Thailand's three-year political crisis.
Chavarat Charnvirakul, a construction mogul and first deputy prime minister, was named interim leader, an official said.
Anti-government protesters cheered Somchai's fall after only 2- months in power and their leader said they would halt all rallies, including blockades of Bangkok's airports.
People's Alliance for Democracy (PAD) leader Sondhi Limthongkul said they would start pulling out of Suvarnabhumi and Don Muang airports at 10 a.m. (3:00 a.m. British time) on Wednesday.
"We've finished our duty," said Sondhi, who had accused Somchai of being a pawn of his brother-in-law, Thaksin.
"If a puppet government returns or a new government shows its insincerity in pushing for political reform, we will return."
The airports operator said it would decide on Wednesday when passenger flights in and out of the capital could resume.
While the chaos may soon be over for thousands of stranded travellers in Thailand, the country's wider conflict between forces loyal to ousted Prime Minister Thaksin Shinawatra and Bangkok's royalist elites looked set to drag on.
"The divisions are so deep, it's difficult to see how it could be over," said political analyst Giles Ungpakhorn of Bangkok's Chulalongkorn University.
The Constitutional Court also disbanded two other parties in Somchai's six-party coalition for vote fraud in the 2007 general election and barred their leaders from politics for five years.
The rulings raised the risk of clashes between red-shirted government supporters, who forced the judges to find a new venue after surrounding the court, and yellow-shirted PAD protesters, who had invaded the airports in a "final battle" to oust Somchai.
Hours before the court decisions, one person was killed and 22 wounded after a grenade was fired at protesters at Don Muang.
Thailand's revered King Bhumibol Adulyadej, who has intervened in previous political crises during his six decades on the throne, made no mention of the country's troubles during a short speech at a Trooping the Colour military parade in Bangkok.
The annual ceremony, in which the king speaks about the need for military probity, was a picture of tradition and serenity, in marked contrast to the chaos elsewhere in Bangkok.
STRANDED TOURISTS
Around 250,000 foreign tourists have been stranded by the week-long sit-ins at Don Muang, a domestic hub, and the bigger Suvarnabhumi international airport.
"By tomorrow afternoon, I should be able to issue a statement on when we return to normal," Serirat Prasutanond, acting head of Airports of Thailand, told Reuters. Earlier, he said the airports would stay closed until December 15 for security and systems checks.
The first cargo flight in a week left Suvarnabhumi on Tuesday, a welcome sight for a tourist- and export-dependent economy already suffering from the global financial crisis.
Finance Minister Suchart Thada-Thamrongvech told Reuters on Monday the economy might be flat next year, or grow by just 1-2 percent, after earlier growth forecasts of between 4-5 percent.
The travel chaos worried neighbours who were to attend a regional summit in Thailand in two weeks, prompting the government to postpone it until March 2009, a spokesman said.
The Thai baht edged up against the dollar and the stock market rose on optimism that political unrest might subside after the ruling, but shares soon fell back again.
Tom Byrne, Moody's sovereign regional credit officer for Asia and the Middle East told Reuters it was "difficult to see an end to the destructive political polarisation in Thailand."
"We think the events of the past week will damage Thailand's near-term economic outlook and complicate policy making at a time when the government needs to respond coherently to the global recession."
All six parties in the coalition government vowed to stick together and seek a parliamentary vote for a new prime minister on December 8. Lawmakers who escaped the political ban would move to new "shell" parties to form another ruling coalition.
"The verdict comes as no surprise to all of us," said Jakrapob Penkair, a former minister and close ally of Thaksin.
"But our members are determined to move on and we will form a government again out of the majority that we believe we still have," he told Reuters.
(Additional reporting by Bangkok bureau; Writing by Darren Schuettler; Editing by Alan Raybould)
