THAI struggling with huge debt, executives asked to take voluntarily pay cut

 

(Photo) Thaiairways.com

 

Thai Airways International, the national flag carrier, appears to be in a deep financial crisis and may have to delay debt repayments or seek new loans.

 

THAI president Sumet Damrongchaitham said this morning (Monday) that he has asked the company’s executives, himself included, to cut their meeting allowances and remuneration voluntarily to show spirit in helping the organization get through this crisis.

 

“This is just one of the measures to cut costs so that THAI will be able to compete in the aviation industry. The spirit of the board and executives will inspire others in our organization to realize that it is high time that we join forces in all ways to survive this crisis. Whatever can be sacrificed must be sacrificed,” said Mr. Sumet.

 

Full story: https://www.thaipbsworld.com/thai-struggling-with-huge-debt-executives-asked-to-take-voluntarily-pay-cut/

 

-- © Copyright Thai PBS 2019-08-19

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How obscene that these executives - and there must be dozens of them - beside their inflated salaries also are actually being paid extra allowances to attend meetings. Attending management meetings are part of the job description of top executives and thus already should be included in their salaries.  

9 minutes ago, webfact said:

Whatever can be sacrificed must be sacrificed,” said Mr. Sumet.

But you can forget this

10 minutes ago, webfact said:

he has asked the company’s executives, himself included, to cut their meeting allowances and remuneration voluntarily

 

22 minutes ago, webfact said:

THAI struggling with huge debt, executives asked to take voluntarily pay cut

how about investigating their wealth and make them pay it back to the people

34 minutes ago, Misterwhisper said:

How obscene that these executives - and there must be dozens of them - beside their inflated salaries also are actually being paid extra allowances to attend meetings. Attending management meetings are part of the job description of top executives and thus already should be included in their salaries.  

Spoken by someone who is unaware of some of the perks of being a company board member just about anywhere.

37 minutes ago, Misterwhisper said:

How obscene that these executives - and there must be dozens of them - beside their inflated salaries also are actually being paid extra allowances to attend meetings. Attending management meetings are part of the job description of top executives and thus already should be included in their salaries.  

Execs may not be board members at all and vice versa. Executives execute, board decides. Board members usually get compensation for the board meetings. But you're correct, if they are attending normal management meetings and not extraordinary board meetings, should be in the salary. The corporate structure of THAI must be extremely complex so I wonder if they even know who is supposed to do what and be paid for what.

51 minutes ago, webfact said:

Whatever can be sacrificed must be sacrificed,” said Mr. Sumet.

The only thing that needs sacrificing, Mr Sumet, is the current 51% ownership of the company!!!

The sick and sorry state of Thai Airways typifies the quality of management of the Thai government administration in general. And that in turn is a direct reflection of the incompetence of Thai politicians/ministers. 

This company should be put out of it's misery and sold lock stock and barrel to the highest bidder. Given the state it is in I doubt anyone would want to buy it at any price.

This will go down very well with their mia noi.

Why not ask for a bailout from the taxpayer, that is what THAI normally do. 

 

And, in fact, that is what will happen here. This show of "self-sacrifice" is entirely that, a show, to distract the public from the huge hidden bailout which is on its way, probably dressed up as a loan, or a bond issue, etc.

9 minutes ago, Cadbury said:

The sick and sorry state of Thai Airways typifies the quality of management of the Thai government administration in general. And that in turn is a direct reflection of the incompetence of Thai politicians/ministers. 

This company should be put out of it's misery and sold lock stock and barrel to the highest bidder. Given the state it is in I doubt anyone would want to buy it at any price.

It's basically unsellable given the level of debt it carries. 

 

In the full PBS article it puts current debt at ฿245B, then the almost unbelievable statement that, if the request to purchase additional aircraft for ฿156B is approved it would make it the worlds most indebted airline!

 

You couldn't give it away with that much debt, its essentially a zombie company, and cutting a few corporate paychecks wont make a dent in that uncomfortable truth

Edited August 19, 20196 yr by GinBoy2

Be very interesting to know what remuneration some of these fatcats are recieving,I'm sure they'd be in the seven digit numbers no doubt.

A backhander pay cut though would obviously be out of the question ????

Sell it off or shut it down. Too many skimming the cream.

1 minute ago, the guest said:

Sell it off or shut it down. Too many skimming the cream.

And that is precisely why it will never be sold off or shut down. If you are in the club, it provides decades of security for you and your family with little in the way of actual work required. It just needs to be oiled with a taxpayer-funded bailout every 5 years or so.

14 minutes ago, Oztruckie said:

Be very interesting to know what remuneration some of these fatcats are recieving,I'm sure they'd be in the seven digit numbers no doubt.

I expect you mean the official remuneration not including the commissions and kickbacks such they got from Rolls Royce and the ones they will get from the purchase of the new aircraft. 

I knew a Thai bird who's husband did something for Thai airways. He had a proper job outside of the company but also had a position for Thai. Anyway, they both lived a very nice lifestyle. Bragging of free flights here and there.

 

 

Why not ask them to pay full price for their tickets/their families tickets/their friends' tickets?  It could be retrospective over a number of years and an easy repayment plan could be drawn up in cases of hardship.

Would file that in the highly unlikely box.

mai pen rai …..  sabai sabai   !!

Not sure if a state-owned carrier like Thai Airways has the same kind of problem like our national carrier, Malaysia Airlines, but after many bailouts, another bailout was approved again today:

 

Malaysia Airlines gets another RM300m injection from Khazanah

16 minutes ago, steven100 said:

mai pen rai …..  sabai sabai   !!

Does your hero Uncle Too give you free seats too???

Sounds like a preemptive PR stunt, so that when people come looking they will say they have already cut exec pay.

What are meeting allowances?

1 minute ago, Pedrogaz said:

Sounds like a preemptive PR stunt, so that when people come looking they will say they have already cut exec pay.

What are meeting allowances?

Probably peanuts compared to 245 billion debt :+)

I have never flown with thai. Why because there fares are usualyy double the rest of the sevice providers. And for what?

 

As a Star Gold member, Thai was my preference, that was until this April when Super Saver passengers regardless of status had their luggage allowance dropped from 40 kg to 20 kg. Now anything International is either EVA or Singapore. The instant coffee machine in the lounges doesn't help either.

To have any hope they need a  outsider to take charge,but it will never happen,

I once worked for a company like that in the UK, it folded

This is just a reflection of how Thailand has destroyed their tourism industry. 

"he has asked the company’s executives, himself included, to cut their meeting allowances and remuneration voluntarily to show spirit in helping the organization get through this crisis."

 

Several executives agreed and their 'meeting allowances' were cut by 10% - in other news meetings went up by 20%