THAI needs proper restructuring to survive: Sumeth

[rooster59]

THAI needs proper restructuring to survive: Sumeth

By The Nation

 

“We believe that once the restructuring is complete, Thai Smile will improve its financial results in three to five years and will have space for expansion in the future,” THAI's president Sumeth Damrongchaitham said.-Photo by: The Nation

 

Thai Airways International (THAI) needs restructuring if it is to survive in the highly competitive aviation business, the airline’s president Sumeth Damrongchaitham said on Friday.

 

He added that THAI has already appointed an advisory team to see what changes are needed in terms of flight schedules and its tie-ups with other airlines that are part of Team Thailand, such as Thai Smile, Nok Air and Bangkok Airways.

 

“The advisory team will take two months to finalise the study and offer a proposal for our new flight schedule for 2020,” Sumeth said. 

 

Under the restructuring, THAI will focus more on the international market and link up with other members of the Team Thailand for local flights, he said. 

 

“Our new schedule will provide support for customers who fly by THAI to Bangkok and have to board a connecting flight to other locations in Thailand or neighbouring countries. The new schedules will ensure passengers have enough time to catch connecting flights,” Sumeth added. 

 

The new THAI flight schedule will also link up with other Star Alliance airlines as well as Thai Smile. 

 

Photo by THAI

 

“We believe that once the restructuring is complete, Thai Smile will improve its financial results in three to five years and will have space for expansion in the future,” THAI’s president said. 

 

According to a source from the airline, the advisory team has told THAI to create a new department to manage such jobs as purchasing aircraft, setting up flight schedules and getting rid of old aircraft.

 

“This new department may be set up in the next six months, and should start operating by next year,” the source said.

 

Source: https://www.nationthailand.com/business/30373774

 

-- © Copyright The Nation Thailand  2019-07-28

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[geoffbezoz]

They also need executives qualified in business and the aviation industry to run the company properly, not corrupt leeches appointed from the Thai military or the Elite.

[ThaiBunny]

20 minutes ago, geoffbezoz said:

They also need executives qualified in business and the aviation industry to run the company properly, not corrupt leeches appointed from the Thai military or the Elite.

Come on, be fair, why impose this sort of thing on Thai Airways and not every other large Thai company?

[geoffbezoz]

6 minutes ago, ThaiBunny said:

Come on, be fair, why impose this sort of thing on Thai Airways and not every other large Thai company?

Because the thread is about Thai airways only so why would I suggest putting someone experienced in aviation into say PTT ? Anyway the thread would become far to long if I had to list the type of experience needed in all of Thai companies that need all of the leeches replaced, plus it would take me a long time to compile it ????

Edited July 27, 2019 by geoffbezoz

[Number 6]

Thai Air has proven it doesn't need restructuring. Thai airways simply needs the endless funding of tax payer donations that props it up yoy.

 

Thai Air is just another poorly run Thai institution like the other dozens of fiefdoms. A race to the bottom to extract the wealth of a nation before it all blows up.

[ezzra]

I know nothing about aviation, but i can tell you a quick fix or two, stop ordering new planes by the dozens every couple of years, introduce new class of no frill airfares to combat the myriad of low cost airlines all around you, re evaluate your bloated unionised workforce and send home all the leeches, freeloader and loafers and you're halfway there...

[RotBenz8888]

14 minutes ago, rooster59 said:

getting rid of old aircraft.

I went from Europe last week with Thai, and i tell you that plane was ancient, just as the rude flight attendant bitches. They'd tried to pimp the plane by taking away the propellers and ashtrays but it didn't fool me. The seat was hard as a pew bench, worn out and couldn't be reclined.  Breakfast: sponge instead of omelette, and a boiled sausage.

 

Last time for me.

[HiSoLowSoNoSo]

5 minutes ago, RotBenz8888 said:

They'd tried to pimp the plane by taking away the propellers and ashtrays but it didn't fool me.

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

[Mikisteel]

It's concerning when the CEO says something as simple as "ensure all new schedules allow passengers enough time to connect to other flights" odd thing to say, it's a given really and is normally based on consumers planning not the airlines. 

[Pilotman]

2 hours ago, geoffbezoz said:

They also need executives qualified in business and the aviation industry to run the company properly, not corrupt leeches appointed from the Thai military or the Elite.

It should be as obvious to them as it is to the rest of the aviation industry, the airline needs to be in the private sector, of knowledgeable investors and experienced and talented airline executives, not superannuated Air Force Officers and political appointees. Even China and Russia see that need. Of course, that will never happen in Thailand. Same for the airports and the ports. But again, nothing will change. Jobs for the boys. 

[Orton Rd]

Crippled by over staffing,  and too many flying for free, not to mention competence and 'customer service', or that might be deemed defamation.

[scorecard]

2 hours ago, ezzra said:

I know nothing about aviation, but i can tell you a quick fix or two, stop ordering new planes by the dozens every couple of years, introduce new class of no frill airfares to combat the myriad of low cost airlines all around you, re evaluate your bloated unionised workforce and send home all the leeches, freeloader and loafers and you're halfway there...

And discard the current organization chart and rebuild it to reflect the work outputs needed to operate the company all totally aligned to their specific stated goals and their stated business strategies to achieve their goals and nothing more. Anything left over automatically goes. 

 

Plus change promotion criteria - best person for the job by proven and seen knowledge and capabilities and actual past superior performance, and all totally transparent and audited. Also meaning promotion because oldest in the team or longest service, etc., is outlawed. 

 

 

Edited July 28, 2019 by scorecard

[legend49]

Outsource it to a competent airline.

[spidermike007]

Rather than spend hundreds of thousands of baht on this study, I can simply give them some advice.

 

1. Lower your prices. You are not competitive.

2. Improve your equipment. Nobody likes old planes.

3. Lower the cost of business class. Is it always full? And you wonder why not?

4. Offer better baggage handling service. In my opinion, Thai is one of the slower airlines when it comes to retrieval of my bags.

5. Improve the food. For an airline based in a country that is famous for it's food, you guys can do better.

6. Improve the attitude. You guys are not special. I know you think you are. But you are not. Behave like a good airline behaves, show some humility and good service.

 

[Cadbury]

5 hours ago, rooster59 said:

Thai Airways International (THAI) needs restructuring if it is to survive

A statement of the bleeding obvious if ever there was one.

Not long ago I was reading a study into the non economic functionality of Thai Airways. One of the surprising reasons given which help boost it's consistent losses was the lateness of government officials and politicians arriving at the departure gate.

Not only did that stuff up the following scheduled flight times but evidently the added costs are horrendous for occupancy overstays at the gate. Airport penalties, ground staff, inbound aircraft, crew costs etc. 

Of course government officials and politicians are too important to be worrying about mundane matters like that.

[harada]

As much chance of this happening as there is of reforming the RTP, zero, for the same reasons.

[Srikcir]

6 hours ago, rooster59 said:

Thai Airways International (THAI) needs restructuring

Begin with Thailand selling its entire shareholder stake, then let the airlines survival be dictated by the open market as a private enterprise.

[trainman34014]

4 hours ago, Cadbury said:

A statement of the bleeding obvious if ever there was one.

Not long ago I was reading a study into the non economic functionality of Thai Airways. One of the surprising reasons given which help boost it's consistent losses was the lateness of government officials and politicians arriving at the departure gate.

Not only did that stuff up the following scheduled flight times but evidently the added costs are horrendous for occupancy overstays at the gate. Airport penalties, ground staff, inbound aircraft, crew costs etc. 

Of course government officials and politicians are too important to be worrying about mundane matters like that.

Yes; but you have to realise 'Who they are'...Lol  !

[trainman34014]

Not a single word said about the competance of Management or chronic overstaffing.  We have a Thai Pilot in wife's family and even he says they are at least 40% overstaffed and their 'Management'  are worse than useless !

[Bangkok Barry]

5 hours ago, spidermike007 said:

Rather than spend hundreds of thousands of baht on this study, I can simply give them some advice.

 

1. Lower your prices. You are not competitive.

2. Improve your equipment. Nobody likes old planes.

3. Lower the cost of business class. Is it always full? And you wonder why not?

4. Offer better baggage handling service. In my opinion, Thai is one of the slower airlines when it comes to retrieval of my bags.

5. Improve the food. For an airline based in a country that is famous for it's food, you guys can do better.

6. Improve the attitude. You guys are not special. I know you think you are. But you are not. Behave like a good airline behaves, show some humility and good service.

 

 

One of the worst meals I've ever had was something completely inedible in THAI business class. The person next to be was also unable to eat his. It was second only in well over 1000 flights to one on Aeroflot in the old pre-modernisation days.
Add to that their fares which are often (not always) uncompetitive. Next month I'm flying Khon Kaen to Singapore with Thai Lion. 4000 baht the whole trip. THAI wanted to charge over 8000 just for the international sector. Flights all around the same time.

[marcusarelus]

The board of directors are members of the military.  Good luck.  

[scorecard]

15 hours ago, ThaiBunny said:

Come on, be fair, why impose this sort of thing on Thai Airways and not every other large Thai company?

Because 99% of he shares in Thai are owned by the Thai finance ministry, in other words it's a state enterprise, therefore taxpayers funds are used, in massive amounts over decades, to keep it afloat.

 

Private companies make their own decisions whether to employ capable or not capable people etc.

[Pilotman]

In my past career,  I worked for two Asian airlines, both privately owned from the off and both very successful. It has nothing to do with Asian culture, it's to do with the gross inefficiency and poor strategic/business planning in Thai and the antiquated management and ownership structure.  They have first class examples on their Asian doorstep, so it should be a simple thing to understand and address. 

[spidermike007]

On 7/28/2019 at 4:35 PM, marcusarelus said:

The board of directors are members of the military.  Good luck.  

Just one more very good reason why Thailand needs to get rid of its army, once and for all. 

[geoffbezoz]

2 minutes ago, spidermike007 said:

Just one more very good reason why Thailand needs to get rid of its army, once and for all. 

If they did that then who would shoot Thai civilians  in Sukhumvit when the desire takes them ?

[spidermike007]

22 hours ago, Pilotman said:

In my past career,  I worked for two Asian airlines, both privately owned from the off and both very successful. It has nothing to do with Asian culture, it's to do with the gross inefficiency and poor strategic/business planning in Thai and the antiquated management and ownership structure.  They have first class examples on their Asian doorstep, so it should be a simple thing to understand and address. 

 

Your summary presumes a few things.

1. That the directors of Thai Airways want to understand what a successful business model looks like.

2. That they want to improve efficiency, or improve their management. 

3. That they are able to do anything about the very sad ownership structure of the airline, the massive giveaways, of first class tickets to executives, members of the administration, members of the military, etc. 

[TallGuyJohninBKK]

On 7/28/2019 at 6:10 AM, rooster59 said:

THAI needs proper restructuring to survive

 

What about the alternative of it NOT being restructured and NOT surviving???

 

Sometimes, something is so far gone, it's best to just put it out of its (and everyone else's) misery.

 

[Pilotman]

On 7/30/2019 at 12:04 PM, spidermike007 said:

 

Your summary presumes a few things.

1. That the directors of Thai Airways want to understand what a successful business model looks like.

2. That they want to improve efficiency, or improve their management. 

3. That they are able to do anything about the very sad ownership structure of the airline, the massive giveaways, of first class tickets to executives, members of the administration, members of the military, etc. 

Believe me, I presume nothing about Thai or Thailand, if they wanted to change those things,  and all the other issues this country and its people have, they would have done so already.  Of course the US doesn't help, by publically supporting this country as a beacon of stability and development in Asia, when it is no such thing. These blatantly untrue statements discourage the Thais from changing their ways and reforming.   

[spidermike007]

2 hours ago, Pilotman said:

Believe me, I presume nothing about Thai or Thailand, if they wanted to change those things,  and all the other issues this country and its people have, they would have done so already.  Of course the US doesn't help, by publically supporting this country as a beacon of stability and development in Asia, when it is no such thing. These blatantly untrue statements discourage the Thais from changing their ways and reforming.   

True that. The Obama administration distanced itself from Thailand and the junta. Trump absolutely adores tyrants, dictators, strongmen, and dark characters. So, of course the support. It is who he is and what he does. 

[Naam]

On 7/28/2019 at 4:27 PM, Bangkok Barry said:

Add to that their fares which are often (not always) uncompetitive.

i flew several times first with Emirates and Qatar paying less than what Thai was asking for business!