TG president warns airline on brink of collapse, staff must work harder

 

 

Thai Airways International president Sumeth Damronchaitham has admitted, for the first time, that the national flag carrier is in deep financial crisis, to the extent that it may have to fold unless all staff members unite to work harder.

 

He also said that there may still be time, albeit not much, to save the company “otherwise speculation that THAI is going bankrupt will materialize and there is a chance that we will reach that point.”

 

In his forthright speech to THAI executives during a training course at the company’s head office today (Tuesday), Mr. Sumeth said there is fierce competition from low-cost airlines on the northern domestic routes, which used to generate one-third of the airline’s revenue, while the European routes have been affected by the strong baht and Brexit related issues.

 

Full story: https://www.thaipbsworld.com/tg-president-warns-airline-on-brink-of-collapse-staff-must-work-harder/

 

 

-- © Copyright Thai PBS 2019-10-23

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2 minutes ago, webfact said:

there is fierce competition from low-cost airlines on the northern domestic routes, which used to generate one-third of the airline’s revenue, while the European routes have been affected by the strong baht and Brexit related issues.

This may or may not be true, but...

 

I stopped flying with Thai Airways a long time ago because of over-priced tickets and lousy service.

 

 

Click save, the rest of article:
 

- He added that the airline is facing disruption to operations from cut-throat competition in the aviation industry, the closing of air space by some countries, high fuel costs and the grounding of planes while they undergo major maintenance.

Mr. Sumeth disclosed that the airline ran up about six billion baht in losses in the first half of this year, expected to increase to 10 billion baht by year’s end.

Accumulated losses for the past five years amount to 36 billion baht.

Although the situation looks grim, he said that he would not give up and he urged staff members to wake up and do something in earnest “because there is little time left for us.  There is no more comfort zone, and we will all be dead if the ship sinks.”

wait, let me get this right. Staff must work harder to avoid airline collapsing? Not the management should work harder? not the management should take pay cuts, but the staff should work harder????

Common sense has evaporated from management, sitting back pointing the finger,

what worked yesterday won't work today, thinking out side the box is not hard, the whole board needs removing.

I will fly home with Thai as I believe in supporting my home airline but even my patience is running thin on loyalty, 

shake out the dead wood as a starting point.

They could start by not giving freebies to all and sundry in the ruling class. This has not come up in any discussion of how to save the airline by the director or politicians.

I'm surprised the president would make such a statement.

 

Who's going to book their flight with Thai now that they may go under at any time.

 

 

Just now, Chang_paarp said:

They could start by not giving freebies to all and sundry in the ruling class. This has not come up in any discussion of how to save the airline by the director or politicians.

Yes I've said the same on another thread.

 

Their margin aspirations are far too high. I fly a mix of Thai and Emirates, I prefer Thai as it's direct and their ground services are better even though Emirates on board services beats them hands down. Thai are generally £800-1000 more expensive than Emirates in F and on occasions I'm the only passenger in the cabin. No wonder!!

They need outside help. The Saudi's realised this and got Tim Clark to turn the airline around but typical loss of face means they would rather go under than ask for outside expert help.

 

 

 

As laudable as this may sound, not one employee from the very top to the very bottom believes a word of it.

 

This a press statement, to satisfy a news cycle, but designed to change nothing.

 

Everyone knows TG is run as a 'hobby' for ex RTAF pilots, HisSo and friends of HiSo.

 

It'll never be allowed to do what happens to normal companies which are in this depth of doggy do do, in other words, become insolvent and fold.

 

This is tragic microcosm of Thai society, which will run and run until we've all long turned to dust 

17 minutes ago, Chelseafan said:

I'm surprised the president would make such a statement.

 

Who's going to book their flight with Thai now that they may go under at any time.

 

 

Good point. A self-fulfilling prophecy.

Every time I look at the pricing of flights between Bangkok and Chiang Mai, I wonder why Thai even bothers, as their fares are so uncompetitive on their home turf.

Lowering their very high rates would be a good start, stopped flying with them 10 years ago.

1 hour ago, Samui Bodoh said:

I stopped flying with Thai Airways a long time ago because of over-priced tickets and lousy service.

I'm not sure if it's got anything to do with the substance of that original news article but on a personal level...., I've taken to flying into Singapore and taking the train up the peninsular..., stopping off at specific places of interest(to me) on the journey northwards, through Bangkok and then on to Chiang Mai and/or Nong Khai....., and various side trips are very easily done. Back in the day, the main determinants in my choosing to fly Thai International was that I could fly directly from my capital city, flying time was around my tolerance limits..., flights were cheaper and the service seemed better(staff happier/less stressed)..., also, I think frequent flyer points were more generous back then. But, Thai flights slowly, incrementally changed  some few years ago when 'trailer park' families, groups and couples started bypassing Bali and flying TG from Perth, directly into 'Bangers' to get their third world jollies. TG flights became chockers with them. I ended up using up all my ff points..., swearing off Thai and looking for alternatives.., so glad I did.   
Mini rant over.....,

Our flights to Thailand this xmas period.

 

EVA business class $2900 AUD.  New 787-10 with flat bed

Thai business class $4400 AUD.  Old 777 with angled seats

 

Yes . EVA is not direct. But we get to stopover in Taipei on the way home for a couple of days and discover a city that we haven't been to before. And $1500 per ticket is a massive difference

Brexit related issues....what rubbish. Eva and BA are far cheaper than Thai....and the one or two flights a day from the UK is hardly gonna make Thai air collapse

Many of us pray for the collapse. 

Just picked a random date to go back to UK for 2 weeks to see example cost of direct flights (november 5th to november 19th) :

EVA - £575

BA - £576

TA - £662

So, Thai as expected 15% more expensive that other airlines. That's why they are going bust - simply not competitive.

 

 

1 hour ago, webfact said:

TG president warns airline on brink of collapse, staff must work harder

This will surely bring shame and severe loss of face to the Country and the government.

The writing has been on the wall for years and it is only now they realise and admit to it. Had they talked to Blind Freddy earlier he could have told them what was likely to happen. 

They talk about the staff working harder but what about those who don't work at all but just suck up fat salaries because of who they are, what they once were and who they are related to.

2 hours ago, webfact said:

unless all staff members unite to work harder.

Please work longer hours and much harder.............So the Fat Cats can stay in the trough.

I can't imagine anything scarier and more sad to an average Thai than hearing that he/she has to "work harder". 

 

The staff must feel they are in an existential crisis, and tens of thousands will likely resign en masse.

 

Staff: "No more sanuk sabai maibenrai???"

2 hours ago, webfact said:

In his forthright speech to THAI executives during a training course

AKA a junket/free lunch/perk/waste of money.

2 hours ago, webfact said:

In his forthright speech to THAI executives during a training course

Training for what? Applying black paint?

 

 

 

2 hours ago, BestB said:

wait, let me get this right. Staff must work harder to avoid airline collapsing? Not the management should work harder? not the management should take pay cuts, but the staff should work harder????

Yep my thoughts exactly

hope they go under ….. management and their HiSo execs can all lose face.

he should have said ' staff need to work harder at looking for a new job ' 

It was a few weeks ago they said there was enough cash to operate.  Now their pants are on fire.  They use to have a nice Taipei, Hong Kong, Bangkok flight for around B10K back in the day.  Today, there are cheaper, better choices and let's face it, who likes the government of Thailand these days?  Wasn't their an article a few years ago how Thai would maintain fat cat family's private planes for free ?   Would love to see cha cha have to deal with this mess which happened under his usurping. 

3 hours ago, Samui Bodoh said:

This may or may not be true, but...

 

I stopped flying with Thai Airways a long time ago because of over-priced tickets and lousy service.

 

 

I so agree, way over priced, i won't go back to them

 staff must work harder

 

I agree

But they also need to;

 

1) cut the free tickets for PuYais.

 

2) Stop the impromptu strikes by pilots who don’t get the seats their status entitles them too. With planes loaded and on the tarmac this is a deal breaker. Fire them!

 

3) Quit punching stewardess for doing their job and not getting them a snack. Pilots just have to stop that.

 

4) Lastly why not be nice to the passengers?! Don’t act like entitled puYais even if that is the reason you got the job in the first place. Passengers resent this and then go to another airline.

 

and yes they could cut half the board of directors. Dead weight.

 

 

 

Finally it looks like they are beginning to admit there is a major issue. However, this is just garbage - 

 

Mr. Sumeth said there is fierce competition from low-cost airlines on the northern domestic routes, which used to generate one-third of the airline’s revenue, while the European routes have been affected by the strong baht and Brexit related issues.

 

Airlines all over the world make a profit and their issues are because the management don't have the ingenuity to progress the company. Nearly all of them have 0% experience in the aviation industry. 

 

As I always do in these threads: SkyScanner - random date in 6 months time for BKK to LDN return - 

 

EVA - 28K

BA - 29K

THAI - 33K

 

And they wonder why I, and everyone else I know who lives here or comes here from the UK don't book them. 

 

 

1 hour ago, Fex Bluse said:

Many of us pray for the collapse. 

why? You hate that many people? 
 

 

I also stopped flying Thai after more than a decade because of over priced tickets, "cannot" ticketing customer service, terrible mileage program with loads of unused miles and upgrades, snobby flight attendants, and no service to the USA because the planes were not meeting some safety service standard?  

 

The airline needs to be spun off from the government and run by multinational executives 

3 hours ago, Samui Bodoh said:

This may or may not be true, but...

 

I stopped flying with Thai Airways a long time ago because of over-priced tickets and lousy service.

 

 

It says in the article because of the strong baht.. the ticket prices have not gone up in THB. But the exchange rate has.