Thai Airways’ profits dive 83% year-on-year

[Peterbkk99]

As far as I am concerned, it went downhill from the mid-eighties.

I used to fly them to and from Europe all the time. Really loved the service, the beautiful air hostesses and their genuine smile that would make the trip something magic. Prices then were competitive.

But things started to change.

There was this slogan "We are pleased to say that nothing has changed" in the late 80s or early 90s; then their "reengineering" plan in the 90s, and other restructuring plans in the subsequent years. But the magic was lost. For the cumulated reasons mentioned by other posters in this thread. I also feel they became arrogant and take the business for granted. I really miss the old THAI Airways.

 

Edited May 17, 2019 by Peterbkk99

[NanLaew]

Whew! That was close, eh?

 

I heard when it hits 85%, they have to start painting over their aircraft logo's with black paint.

[SABloke]

1 hour ago, webfact said:

The airline’s management is blaming the high baht

Just 1 factor, but I call BS. This time last year the baht was 32.08 - so it's a whopping 1% stronger now, but 83% drop in profits...

[Eric Loh]

What happen to the re-structuring plan laid out in 2015 to reduce operational cost by 20%, cut the flight size and unprofitable routes. All forgotten and even asked for new planes. That’s what can happen when you have generals running the country. 

[JRG23]

2 hours ago, shady86 said:

Always put the blame on external factors. Typical Thainess, never look at ownself and self improvement.

To be fair, all companies do this across the world (even Boeing!).

They cannot accept mistakes - puts the share value down big time.

[Fex Bluse]

1 hour ago, toenail said:

Thai airways is burden with a huge group of old administrators that do not want to give up their power and cushy job to the younger more savvy generation. And in Thai culture, one cannot make positive business suggestion without your elders losing face in the company. -So without accountability the financial losses will continue.

-Sad because over 20 years ago it was a leading airline. 

Hmmm... I'm not so sure the younger generation would be equipped. They are products of the same, largely unchanged, broken education and cultural system. 

 

I employed plenty of them. The best and brightest the country has to offer. They are not up to the task. 

 

They need OUTSIDE help. 

[yellowboat]

2 hours ago, colinneil said:

They are forgetting to add all the free seats for cronies and their families, and all the perks hangers-on are receiving, are only adding to the airlines woes.

If memory serves, there was an article about providing free maintenance and fuel for certain well connected families.  No wonder why the 1% like to guard their identities.  

 

On top of that, it is not competitive or friendly.  Took their Thai smile.  That was okay.  Would take that again, Thai? no. 

[bluesea]

The Company has been going down Hill for years, Arrogant Cabin Crew , Sub standard Food , limited Alcohol on long haul flights, Aircraft not cleaned.

They will not learn,by customers complaints.

We now fly Singapore Airlines and cannot fault the Service at all.

[patsfangr]

2 hours ago, PatOngo said:

That can only mean one thing......time to buy more planes. I just love Thai logic!

No. Time to raise prices because there's not enough income. THAT is Thai business logic! 

[Pilotman]

One of only three airlines to fly direct to London, slash prices and they would clean up. I'm sure that their pricing policy to all destinations, bar domestic,  is all to cock. It's like they have never heard of yield management. 

[beano2274]

When you look at the prices that is the issue, to get my wife and child back to Thailand for a holiday, it costs 1062Euros per person, if I book with another airline it costs that for both of them.

 

The prices the other way are also bad, MIL is coming in July prices to Dusseldorf from 21000 THB with 23kg, book with Thai it costs 54000 THB (lufthansa from FFM to Dusseldorf), with only 20kg. Obvious which one we will book for her, gives her a lot more spending money to leave in Europe!!!!

Edited May 17, 2019 by beano2274
spelling

[patsfangr]

Very few, if any Thai businesses understand the concept of lowering prices and/or offering "extras" to increase volume, and net a higher profit. (Assuming, of course, that you simultaneously improve efficiency.) They simply can't get beyond thinking that you must increase prices to increase revenue. 

[Kevin mcbeath]

2 hours ago, 4MyEgo said:

I was waiting for years for them to have sales to travel to Australia, so in all those years of travel to Australia in the interim, they have lost out as other carriers like Jetstar have fares at less than halve the price Thai airways have been offering, and those are direct flights from Phuket to Sydney, although I did fly with AirAsia to Sydney once via Malaysia, the change was a bit boring but hey, i.e. 3 hour layover, but the fare was still half the price.

 

The above said, Thai Airways fly bigger planes with more room, food and alcohol free, as is entertainment, but hey, iPads/tablets these days sort that out, as do ready made meals to take on board, and if you need a drink, you pay a little extra or go without.

 

All of the above said, I would fly Thai Airways to Sydney for $800AUS return, but not over $1,000 when I can get there direct for $580AUS from Phuket all inclusive, just have to take some food/snacks on board, it all adds up when you have a big family of 6, so if Thai Airways wants to stay in the game, it has to drop it's pants, i.e. it's called competition, or better abng for your buck !

I mostly use Thai Airlines from Sydney prices have been great for some time now I traveled last Oct for $720 best price ever. However a few months ago similar price for October this year, checked today increase of about $100

[bubba]

2 hours ago, jmd8800 said:

Last fall I was looking for flights from BKK to LAX. I usually fly Asiana for around 850USD. I noticed the Thai Air prices for the same travel dates was around 1400USD. I booked Asiana.

 

When I boarded the Asiana flight I found it was a code share flight with Thai Air.

 

TG ended flights to LAX in October 2015. You were probably looking at TG to NRT and then a Star Alliance codeshare (UA or NH) to LAX. 

 

I like Asiana as well, although there are very long connection times at ICN outbound to North America. I think their service is going downhill as well, and they nearly went under earlier this year until they refinanced their debt,

Edited May 17, 2019 by bubba

[4MyEgo]

5 minutes ago, Kevin mcbeath said:

I mostly use Thai Airlines from Sydney prices have been great for some time now I traveled last Oct for $720 best price ever. However a few months ago similar price for October this year, checked today increase of about $100

Yeh I know its weird, prices are always cheaper from Sydney return to Sydney, doesn't make any sense to me

[SABloke]

8 minutes ago, Kevin mcbeath said:

32.08 rate where was that?

17 May 2018, hence my saying "this time last year"

[Bantex]

I travel to the U.K. several times each year and stopped using Thai Airways 13 years ago after their prices started going up well above other airlines using the same routes. It’s not the so called high Baht but that they’ve priced themselves out of the market.

[jayboy]

29 minutes ago, Fex Bluse said:

Hmmm... I'm not so sure the younger generation would be equipped. They are products of the same, largely unchanged, broken education and cultural system. 

 

I employed plenty of them. The best and brightest the country has to offer. They are not up to the task. 

 

They need OUTSIDE help. 

It's interesting isn't it that major corporations in Japan, Singapore and Taiwan will reluctantly perhaps but if necessary hire a foreigner in a leadership role if that what it takes to compete internationally.

 

Yet in Thailand that possibility is completely out of the question.I suspect that Thai management class simply cannot bear the thought of external scrutiny by foreigners, especially if that is likely to have consequences.In the case of Thai Airways denationalization could be the answer.Even if foreign holdings were limited there are Thai private sector groups that would be very well equipped to own/manage the new entity.As it is there's just too much flab and patronage in the system.

[Micbozy]

I quit flying with them mainly due to their service quality, their business class service quality and staff friendliness are even worse than any American airlines, yes they are state-owned and most of the cabin crews look like closing to their retirement age, but they shouldn't treat the passengers with arrogance.

[jmd8800]

24 minutes ago, patsfangr said:

Very few, if any Thai businesses understand the concept of lowering prices and/or offering "extras" to increase volume, and net a higher profit. (Assuming, of course, that you simultaneously improve efficiency.) They simply can't get beyond thinking that you must increase prices to increase revenue. 

Not many in my country (USA) do either. Most airlines in my country rely on monopoly powers and little regulation for the government. So domestic flights in the USA have cramped seats, high costs to many 'non-hub' airports, horrible on time records etc etc.

 

It is not a Thai thing.

[sandrew33]

3 hours ago, shady86 said:

Always put the blame on external factors. Typical Thainess, never look at ownself and self improvement.

Worth noting that the US Treasury is considering adding Thailand to its watch list as currency manipulators for artificially inflating Thai baht value v USD. 

 

So in this case the high Thai baht may be caused by the same govt that is costing its airline money ???? 

[Wiggy]

3 hours ago, webfact said:

and the closure of Pakastani airspace (forcing rerouting of its Eurpean flights), for the drop.

I track flights often and this accounted for an extra 45 minutes onto each flight. Plus at the time I recall THAI saying that going north and then over China was a more efficient route. Oh the BS!  

[miamiman123]

The high baht and all the farang leaving???

no way! Ha! 

[Viggo McQuaid]

3 hours ago, gunderhill said:

What they need  is to buy 200 new  planes, get a  new air vice chief air marshall rear admiral and give all staff and their extended  families 1st and Business  class seats as a  perk, lets say 60  times  a year to be reasonable, Im pretty sure that will fix  it.

Thailand ???????? also need more Generals!! 

[Katipo]

The closure of Pakistani airspace was only for a few days. How exactly does the China-US trade war affect Thai? Can accept that the high Baht would play a factor. Having said that, I fly Thai internationally about a dozen times per year. I only remember one occasion where the plane was noticeably empty... as in, perhaps 25% of seats were vacant. Thanks to direct routing to and from Bangkok, they seem to usually do very well, with people prepared to pay a bit extra for an interrupted flight. And that's another point people typically pay more for Thai than just about every other airline. It is my own opinion that these losses are largely due to poor management, and resulting inefficiencies. I can't comment on how much they lose flying politicians or whoever around, as I don't know the actual extent of this, and neither does anyone here.

[Inepto Cracy]

2 hours ago, colinneil said:

You are living in cloud cuckoo land, making that comment.

My wife has a friend who gets freebies on a regular basis, that is not a fable, just the truth.

I know kids from two executives of thai airlines and a daughters kids, yes they get freebee flights to the USA and Europe regularily.

This not a fable but has been going on since I knew and met these kids in 2009.

The airline deserves to go bust.

Just the other day this airline put in an order for 125 new aircraft, dim wits at work.

Wow how flippin' thick do you have to be, just to get noticed for all the wrong reasons?

Maybe painting out their colours after sliding off the runway was the begining of the stupid epidemic to grip this airline. How many runway excursions have they had in the last 5 years?

Smooth as corruption springs to mind here.... Slip onto bust idiots.

 

Edited May 17, 2019 by Inepto Cracy
added a word for better English grammer...

[Dukeleto]

2 hours ago, smedly said:

Time they realised they are not experts and are the Hub of nothing - poor management and corruption have driven this company into the ground, how many tourist come here every year - why is Thai not getting a decent share of their own tourism market -

 

Simple, they will not code share or allow seasoned foreign experts to run the company, why ?, because they are protectionist, have an inferior complex, and don't want any outsiders involved because it will expose the rampant corruption

Perfectionists...I beg to differ in 15 years I cannot recall one example of such behaviour here.

[DLock]

Thai Airlines needs to privatize, fire 50% of its staff, hire some experienced foreign operators, cut all freebies, close unprofitable routes, rethink pricing and rebrand themselves.

 

They are a bit tired and archaic, and certainly aren't keeping pace with the competition, especially the middle eastern airlines.

 

I still fly Thai, mainly because I am Gold Card and changing flights is very easy compared to others. Cost is less important to me.

 

But they certainly are not what the once were...

 

 

[shaurene]

No surprise what so ever. They give the same reasons each yr.

Changes that need to be done, but we all know nothing will change.

1: Stop these free be flights, no other airline does it like Thai.

The people that get the free flights with their family are very wealthy, they can pay their own flights.

2: Alltough Thai is a Govenment company the Government should keep their nose out. They do not know how to run an airline.

3: They need to source an international experienced CEO. and leave him to do the job.

4: Thai are overly staffed. 

 

[CGW]

I'm obviously in a minority, I fly them regularly - about 12 flights a year mainly to China, main reason for flying them is flight schedule, they take off and arrive at decent hours, flying business is pretty much hassle free, service adequate, not great & there are certainly better airlines about, depends on your routing.