Thai Airways says it will stick to ‘rehabilitation plan’ despite 11.6 billion baht loss in 2018

[rooster59]

Thai Airways says it will stick to ‘rehabilitation plan’ despite 11.6 billion baht loss in 2018

By The Thaiger

 

 

It hasn’t been a good week for Thai Airways as the national airline continues to fly passengers to their original destinations days after flights were cancelled and rescheduled due to Pakistan airspace closures. Even yesterday Thai Airways was reporting a backlog of up to 2,000 passengers they were hoping to clear before the end of this weekend.

 

Meanwhile, it emerged yesterday that Thai Airways International reported a net loss of 11.6 billion baht compared to a 2.1 billion baht loss the year before.

 

The airline is putting its increased losses down to higher fuel and repair costs.

 

Full story: https://thethaiger.com/news/business/thai-airways-says-it-will-stick-to-rehabilitation-plan-despite-11-6-billion-baht-loss-in-2018

 

-- © Copyright The Thaiger 2019-03-02

[WeekendRaider]

there are few things more subsidized, in hundreds of ways,  than the airline business yet these guys can't run a profit even in the midst of an Asian tourism boom.  and that is without even touching on the 'externality' involved in this business... the one that involves the stuff that probably explains why we left the trees 8 million years ago.   say what?  I won't bother responding on that,  but if this is a losing business now, goodness gracious later on.  and not very far along from here... there will be a knee jerk demand by most people that those CORSIA offsets, scheduled for 2027, are not anywhere near enough, even amoung frequent flyers.  count on it.  and these guys are having trouble now?  

Edited March 2, 2019 by WeekendRaider

[Cadbury]

44 minutes ago, rooster59 said:

Thai Airways says it will stick to ‘rehabilitation plan’ despite 11.6 billion baht loss in 2018

2018 loss of 11.6 billion baht is a big increase from 2.1 billion baht in 2017. Well done Chairman and the Board of Directors and all their freeloader friends.

Back in late August last year Thai Airways demanded of Nok Air that they come up with a rehabilitation plan and a clear strategy before Thai Airways put more money into it to save it's bacon. 

Good to see the the TA Chairman has now adopted the same strategy to try and save his own miserable company rather than being absorbed and preoccupied with losses by Nok Air.

One can only expect that Thai Airways losses plus Nok Air losses should make for another bumper loss in 2019 for the Thai Airways Group. I see another world record coming for the biggest annual loss of any international airline. 

No worries! The taxpayers will keep it propped to pay their useless fat-cats but it's a shame that 11.6 billion baht can't be spend on education and health.
 

[55Jay]

Only flew them once, and only because they had a direct flight from Kathmandu to BKK.  

 

My normal route is Eastbound (LAX) so they aren't a player anymore.  Even when they were, their prices were higher and the flight came up in results as non-stop.....until you clicked on details and saw there was a stop in Korea.  That persistent glitch was never addressed as far as I recall, which added to my cautionary view of Thailand's general attitude toward workmanship, maintenance, and the often dizzying way the country lurches along.  Wasn't long after they had problems with the FAA and quit the US routes altogether.

 

https://www.travelcodex.com/thai-airways-cancels-los-angeles-route-ends-35-years-of-serving-north-america/

Edited March 2, 2019 by 55Jay

[geriatrickid]

Don't blame Thai Airways. Keep in mind that the airline has no control over the  military's administration use of the airline as an adjunct transportation service and employment opportunity for senior military officers.

TG is obliged to pay rent to the military for the use of military owned airports. It is also assessed fees by the government. The airline has no ability to fight its being used as a cash cow.

 

It is relatively easy to slash the losses. Let the airline pay reasonable access fees, let the airline dispose of the unprofitable aircraft models and  stop flying on some routes. Let the airline adjust its  staffing to match its competitors.

 

[akirasan]

Failing their FAA audit again wouldn't have helped either. 

[White Christmas13]

I have not used Thai for many years because i was not satisfied with them but unfortunately  I must

use them again since they are the only airline who operate a direct flight from Perth to Bangkok

last time I used Scoot which was not bad but i don't like to spend to much time waiting for

the connecting flight in Singapore and I was not happy because on the way back to Perth they

refused to check trough my baggage so I had to check out to pick up my baggage and check in

again nearly missing my connecting flight so I have to use Thai ones more

[LomSak27]

The pilot punching the stewardess, for not immediatly getting him food, and doing her job tending to the customers first, is a very strong indication serious problems remain at Thai Airways.

Last Octobers brouhaha created by the Thai Pilots Hi So antics were the visible tip of the iceberg.  If Thai airways does not implement changes so the paying customer come first, and all employees understand this, most especially the pilots, this airline is will be toast no matter how much money is pumped in to keep a dead albatross aloft.
 

This was really a good airline back in the 90’s. It is stunning how far it has fallen. Today when I fly I do not even consider them as a possibility.

 

Edited March 2, 2019 by LomSak27

[sammieuk1]

Did he huge loss also include the 50 baht allocated to improve customer service???? 

[Two Plus Two]

47 minutes ago, akirasan said:

Failing their FAA audit again wouldn't have helped either. 

That was the CAAT, not Thai Airways.

[Youlike]

What was their excuse to not fly around Pakistan like all other airlines (except EVA) did??

[AhFarangJa]

1.2 Million Baht an hour..........Impressive............

[zydeco]

A quarter of all Thais living outside Thailand live in the United States, and Thai Air can't make a profit on that route (or apparently devote the maintenance procedures and inspections necessary to fly in the US). That tells me Thais living in the US don't want to return home for a visit, or there is no business for Americans worth doing in Thailand, or that American tourists would rather risk a beheading in Acapulco than being poisoned in a Thai hotel or murdered on a Thai roadway.  Or it means all three. If the airline can't make a go of their potentially biggest market, how will they make money flying to smaller markets in Europe?

[Ossy]

Don’t we all hate hearing some clever dick crowing, ‘I told you so.’ Well, listen up . . . When Sumeth, with no airline experience, got the THAI job last September I said I'd give him a year, at best. I predicted he’d be wrongly preoccupied with revenue, as opposed to optimising operational performance, customer satisfaction and departmental efficiency and leaving the revenue streams in the hands of a trusted finance manager, if they haven’t all fled the country by then. September will mark Sumeth’s first year . . . will he still have an airline, let alone a job by then?

 

[phkauf]

14 minutes ago, zydeco said:

A quarter of all Thais living outside Thailand live in the United States, and Thai Air can't make a profit on that route (or apparently devote the maintenance procedures and inspections necessary to fly in the US). That tells me Thais living in the US don't want to return home for a visit, or there is no business for Americans worth doing in Thailand, or that American tourists would rather risk a beheading in Acapulco than being poisoned in a Thai hotel or murdered on a Thai roadway.  Or it means all three. If the airline can't make a go of their potentially biggest market, how will they make money flying to smaller markets in Europe?

Because Thailand (not specifically Thai Air) has failed their US FAA audit again, they are not allowed to have direct flights to the US and they also are not allowed to code share with US carriers. So their Star Alliance partner United cannot book a ticket using Thai flights. So if you fly to or from the US, using a US carrier you will need to use an airline other than a Thai airline. 

Thailand's failing of US FAA audit puts the country in the illustrious company of Bangladesh and Ghana - something the generals should be very proud of.

[scorecard]

25 minutes ago, Ossy said:

Don’t we all hate hearing some clever dick crowing, ‘I told you so.’ Well, listen up . . . When Sumeth, with no airline experience, got the THAI job last September I said I'd give him a year, at best. I predicted he’d be wrongly preoccupied with revenue, as opposed to optimising operational performance, customer satisfaction and departmental efficiency and leaving the revenue streams in the hands of a trusted finance manager, if they haven’t all fled the country by then. September will mark Sumeth’s first year . . . will he still have an airline, let alone a job by then?

 

 

Quote:  " I predicted he’d be wrongly preoccupied with revenue, as opposed to optimising operational performance, customer satisfaction and departmental efficiency and leaving the revenue streams in the hands of a trusted finance manager,... "

 

Agree, and he twist, he organized for Thai soap operas to be screened on TG flights with a big announcement that everybody wants to see Thai soapies, with rape, violence, denigration of women, etc etc. Wrong focus Mr. Sumeth in terms of customer satisfaction.

 

Plus who produces these odious programs? The conglomerate he used to work for. 

 

 

[mickymouse1]

12.6tb a share from a 24tb a share king ago .I never recall TA making handsome profits for its shareholders but it seems to pay its BOD etc handsomely.

The Entire company is in need of a complete rationalisation program that will take into consideration the replacement of its BOD &Some Sr managers without any golden handshakes. 

[spidermike007]

Rehabilitation tip #1. Offer competitive prices.

Tip #2. Make sure your staff is friendly, like most of Thailand.

Tip #3. Try to make sure bags do not take 30 minutes or longer to arrive on the belts.

Tip #4. Sell the airline to a private company, so it can be run properly. 

Tip #5. Upgrade your equipment more often. Clean and new sells.

[CeeGee]

Here is one reason Thai are not making money,I have a flight with EVA in Business class London to Bangkok return.Eva Air price £2100.Thai airways same date,same class  £3200(priced from their own website,when you can get it to work,).

Who in their right mind would fly Thai at that price difference?.I know people say that they can get Thai prices cheaper but in over 15 years travelling this route I have never found Thai to be cheaper than either EVA or BA(the only airlines that do this route direct.)

Edited March 2, 2019 by CeeGee
punctuation

[Cadbury]

2 hours ago, Youlike said:

What was their excuse to not fly around Pakistan like all other airlines (except EVA) did??

Unconfessed incompetence! 

Thai Airways says it will stick to ‘rehabilitation plan’.

Pretty much safe to assume Thai Airways is almost beyond "rehabilitation".

Realising their own incompetence should be the first step in any rehabilitation process. 

Misguided pride and "loss of face" will prevent them from doing the obvious and flogging it off to a more capable and efficient airline. This airline is an embarrassment to it's nationality.

 

[GinBoy2]

The airline industry in general is hard, they work on tiny margins.

That being said, most airlines in the world have been quite profitable over the last 10 years. It took bankruptcy to shake up the US airlines in the 2000's to adopt a profitable model.

Yet TG has racked up losses for years

 

TG's problem, it's a playground for ex military pilots, and a toy for elite's. It's not a real business at all.

 

More like a vanity project...'Oooh SG have a A380, gotta have me one of those'

 

They might as well just accept the fact of what it is, or just shut it down

[scorecard]

10 minutes ago, GinBoy2 said:

The airline industry in general is hard, they work on tiny margins.

That being said, most airlines in the world have been quite profitable over the last 10 years. It took bankruptcy to shake up the US airlines in the 2000's to adopt a profitable model.

Yet TG has racked up losses for years

 

TG's problem, it's a playground for ex military pilots, and a toy for elite's. It's not a real business at all.

 

More like a vanity project...'Oooh SG have a A380, gotta have me one of those'

 

They might as well just accept the fact of what it is, or just shut it down

Quote: "TG's problem, it's a playground for ex military pilots, and a toy for elite's. It's not a real business at all.

 

More like a vanity project...'Oooh SG have a A380, gotta have me one of those'".

 

Reminds me of decades ago when they were hit with "Thai is a just a hi-so social club and nothing more"  The masses agreed.

 

And, decades back they were receiving numerous serious complaints from customers hitting the headlines about the attitudes and on-the job behaviours of their check-in staff and especially their cabin crew.

 

On TV news a senior executive made an announcement: 'Yes we know there have been some complaints but we have answer: 'We're going to get new uniforms'.

 

They lost the plot more than 2 decades ago and it just gets worse.

 

 

 

 

 

[GinBoy2]

To illustrate their ineptitude, think about this.

 

Can't remember which incoming CEO it was. But he recognized that A380 just wasn't an aircraft suited to TG route structure. 

So he tried to cancel. Problem was, their crack negotiating team had signed a contract with cancellation terms so onerous they had to take the aircraft.

The A340-500's which still sit out at DMK. They are practically worthless, yet several years ago they did get an offer, yet because it was lower than what they had them on the books for, they didn't take it. 

So now they just sit there depreciating year after year.

 

It's a joke of a company

[jaiyen]

6 hours ago, White Christmas13 said:

I have not used Thai for many years because i was not satisfied with them but unfortunately  I must

use them again since they are the only airline who operate a direct flight from Perth to Bangkok

last time I used Scoot which was not bad but i don't like to spend to much time waiting for

the connecting flight in Singapore and I was not happy because on the way back to Perth they

refused to check trough my baggage so I had to check out to pick up my baggage and check in

again nearly missing my connecting flight so I have to use Thai ones more

I have just got an email from AM Travel in Perth letting us know that w.e.f. 1st April the check in allowance on Perth to Bangkok will be cut from 30 Kg to 20 Kg.  we lost the 787 on this route and now they are cutting the baggage allowance on an old A330.  Back to the old days !  

[Fex Bluse]

2 hours ago, Father Fintan Stack said:

It is pretty much a microcosm of the entire country; poorly run and mismanaged, poor value for money, dubious ethical practices, questionable safety, low standards of service and used by an elite few to skim off the top.

????????????????????

[bowerboy]

Classic example of where they are probably going wrong.

 

I fly 2 to 3 times per month around Asia Pacific with 50% of that being in Business Class.

 

I will only use Thai as a last option for 2 reasons:

 

1. Their Business Class is completely unpredicatable with no clue as to whether you will get a lie flat seat or not.

 

2. They change their IFE about every 6 months. Meaning if you fly them regularly then it’s the same movies again and again. 

 

I can pay less less on most other airlines for Business and be guaranteed that I will get a lay flat seat and good, regularly updated IFE.

 

i accumulate all of my frequent flyers on my Thai card and generally only fly Thai Business or First Class using points (their Gold Card is very generous and flights always available).

 

So essentially I give my real money to every other airline and then use Thai only for free flights. I am certain most frequent flyers would be the same as me and I also believe that frequent business class flyers are where airlines make their money.

 

Add to that the buses to and from the aircraft and the high prices and it is a no brainer. I can say hand on heart that Singapore Airlines economy class is better than Business Class in most Thai aircraft (better meals, better IFE, walkway rather than gate, marginal difference in seat and food).

[SOTIRIOS]

....with astronomical tourist figures....???

 

....go figure...???

 

....have heard of 'turning a blind eye'.....but this isn't this ridiculous.....???

[Searat7]

4 hours ago, GinBoy2 said:

To illustrate their ineptitude, think about this.

 

Can't remember which incoming CEO it was. But he recognized that A380 just wasn't an aircraft suited to TG route structure. 

So he tried to cancel. Problem was, their crack negotiating team had signed a contract with cancellation terms so onerous they had to take the aircraft.

The A340-500's which still sit out at DMK. They are practically worthless, yet several years ago they did get an offer, yet because it was lower than what they had them on the books for, they didn't take it. 

So now they just sit there depreciating year after year.

 

It's a joke of a company

I think there are 9 A-340’s left because the government bought one for PM to use. They should not be allowed to purchase new planes until they sell the old ones. A bigger problem though is that they are in dire need of a CEO who is from the airline industry and has turnaround experience but he would have to have a free hand to make big changes.

[Nik spacey]

9 hours ago, Youlike said:

What was their excuse to not fly around Pakistan like all other airlines (except EVA) did??

No BA10 returned to LHR

[GinBoy2]

4 hours ago, Searat7 said:

I think there are 9 A-340’s left because the government bought one for PM to use. They should not be allowed to purchase new planes until they sell the old ones. A bigger problem though is that they are in dire need of a CEO who is from the airline industry and has turnaround experience but he would have to have a free hand to make big changes.

Well that's the problem.

 

You could get Fernades from Air Asia as CEO, but his hands would be so tied, he couldn't make the structural changes needed to turn it around.

 

Real airlines go into bankruptcy (Chapter 11 in the US), then restructure their business to make themselves profitable.

 

TG is more akin to shuffling the deckchairs on the Titanic