THAI urged to cut purchase of new aircraft to 25

[snoop1130]

THAI urged to cut purchase of new aircraft to 25

By THE NATION

 

 

Deputy Transport Minister Thavorn Senniam has called on Thai Airways International (THAI) to reconsider its request to purchase 38 aircraft, saying 25 is a more reasonable number. 

 

He said the request has been returned to the THAI board to reconsider at its August 27 meeting, adding that the Cabinet should take no longer than the end of September to approve the purchase of 25 aircraft. 

 

Thavorn added that he had asked THAI president and CEO Sumeth Damrongchaitham to tell him exactly how many aircraft were required, and Sumeth had reportedly said 25. The request for 38 aircraft was made to the previous Cabinet in 2011, he said. 

 

Sumeth, however, told the media later that the number of 38 had been divided into two unspecified timelines – the first purchase would be 25 aircraft and the second 13. He added that the 13 aircraft would replace several existing aircraft, which will be decommissioned, keeping THAI’s fleet at 100. 

 

He said the purchase process was now back to square one due to Thavorn’s request for reconsideration, but this was good because it would be processed quickly.

 

Source: https://www.nationthailand.com/business/30375005

 

-- © Copyright The Nation Thailand 2019-08-19

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[z42]

It's hard to know where to begin really. The debts are currently upwards of 120 billion baht.

There are even more reports just today where the board member referenced in this story sent a memo to the top brass suggesting to take paycuts as a means to balance the books.

 

The taxpayer is going to be hit with huge costs again as the purchase  plan sounds like a formality, just the numbers are a tad unclear.

 

What a collosal waste (of money by the airline, and skin by the execs)

[Geoffggi]

How about buying only one submarine as the government want cuts to spending...??

[Cadbury]

12 hours ago, snoop1130 said:

Deputy Transport Minister Thavorn has called on Thai Airways International to reconsider its request to purchase 38 aircraft, saying 25 is a more reasonable number.

Won't happen. Too much commission and kickbacks at stake to do that. Particularly now as the execs are being asked to take a pay cut. 

Even less of a chance if the new aircraft are fitted with Rolls Royce engines.

[phkauf]

12 hours ago, snoop1130 said:

He said the purchase process was now back to square one due to Thavorn’s request for reconsideration, but this was good because it would be processed quickly

Why does it seem they can never get out of Square One to do anything at this company?

First, they need competent management with airline experience. Hire the guy from Cathay who just got sacked because of the mess in HK with China, he was making big strides in fixing Cathay - Yeah I know he's not Thai.

Second, come up with a strategy for the business that makes sense. Competing with all the low-cost carriers is doomed to failure.

Third, if they are not ready to privatize the company, at least make it operate as if it is private. No more special perks and favors for the chosen elite and employees - this just eats into the prime sources of revenue in First and Business Class.

But since they can never get out of Square One - this will never happen and I just wasted a few minutes of my and your lives.

[hotchilli]

It's getting deeper and deeper into debt due to incompetent management and executives.

Two choices exist... get rid of the incapable staff and replace them with people who can run an airline profitably or pull the plug !!

[Srikcir]

14 hours ago, snoop1130 said:

two unspecified timelines

Timeline two:

14 hours ago, snoop1130 said:

the 13 aircraft would replace several existing aircraft, which will be decommissioned

How can that replacement be unspecified, ie., when the existing aircraft will no longer be operable?

14 hours ago, snoop1130 said:

He said the purchase process was now back to square one due to Thavorn’s request for reconsideration, but this was good because it would be processed quickly.

"processed quickly," so the timeline is not unspecified but a priority for immediate action.

Meanwhile hold the purchase of the new 25 aircraft in abeyance until THAI shows a profit.

[wolf81]

3 hours ago, phkauf said:

Why does it seem they can never get out of Square One to do anything at this company?

First, they need competent management with airline experience. Hire the guy from Cathay who just got sacked because of the mess in HK with China, he was making big strides in fixing Cathay - Yeah I know he's not Thai.

Second, come up with a strategy for the business that makes sense. Competing with all the low-cost carriers is doomed to failure.

Third, if they are not ready to privatize the company, at least make it operate as if it is private. No more special perks and favors for the chosen elite and employees - this just eats into the prime sources of revenue in First and Business Class.

But since they can never get out of Square One - this will never happen and I just wasted a few minutes of my and your lives.

I wonder (kinda doubt) a Western guy could be effective in this corrupt culture. I think a lot of people would try to remove him, if he got between those Thai people and their kickbacks.

[phkauf]

9 minutes ago, wolf81 said:

I wonder (kinda doubt) a Western guy could be effective in this corrupt culture. I think a lot of people would try to remove him, if he got between those Thai people and their kickbacks.

100% agree with you. But if THAI stands any chance of turning around, they need to completely change their corrupt culture. The aviation market is way too competitive and efficient these days to allow for the old crony deals of the past.

It would not surprise me in the least if the government were to crackdown on THAI's competition in the Thai market. Additionally, they could set limits for foreign carriers to give THAI a monopoly on some routes overseas. It would be the dumbest thing ever done, but not out of character for a Thai Government.

[Sydebolle]

Get your act together, if you are serious about it.

Analyze why TG is losing money head over heels for years and take corrective measures. Next is to streamline the route network and frequency in line with markets needs. 
This will, in turn, give you the requirements to implement the plan, i.e. fleet, crew etc. And last, optimize fleet issues as far as engines, maintenance facilities etc. are concerned.

Not rocket science, implemented by European carriers 40+ years ago and they operate without such huge losses at much higher salary/cost structures and more modern fleets - possibly less corrupt though - I dont know! 

[Bob12345]

5 hours ago, Srikcir said:

How can that replacement be unspecified, ie., when the existing aircraft will no longer be operable?

The moment an airplane wont no longer be operable is quite easy: you will read about it in all newspapers around the world.

Then they buy a new one to replace the one that crashed.

[RichardColeman]

Thai economy :

 

Thai airlines debt = buy more planes

No growth due to baht = get more debt for nationals

 

You cannot spend your way out of a bad economy.

[cracker1]

On 8/20/2019 at 1:11 PM, phkauf said:

100% agree with you. But if THAI stands any chance of turning around, they need to completely change their corrupt culture. The aviation market is way too competitive and efficient these days to allow for the old crony deals of the past.

It would not surprise me in the least if the government were to crackdown on THAI's competition in the Thai market. Additionally, they could set limits for foreign carriers to give THAI a monopoly on some routes overseas. It would be the dumbest thing ever done, but not out of character for a Thai Government.

"Additionally, they could set limits for foreign carriers"

I think your suggestion may knock Thai tourism further towards oblivion ?