THAI to submit rehab, purchase plans in January

[webfact]

THAI to submit rehab, purchase plans in January

By THE NATION

 

 

State carrier Thai Airways International (THAI) plans to submit a rehabilitation plan (2020-2025) to the board of directors in January, comprising twenty projects and four measures.

 

THAI president Sumeth Damrongchaitham said a separate proposal for the purchase of new aircraft will also be submitted.

 

The first measure aims to increase Thai Airways’ revenue from ancillary services, such as advance seat selection, food and beverage and ‘preferred seats’ which allows passengers to get a seat with extra space if they paid more.

 

The ‘preferred seats’ service has been well received, expected to increase THAI's revenue by least Bt70 million per month”, the president said.

 

"Also, there are measures to improve the carrier's capacity by using technology, and to control and reduce the organisation’s expenditure by applying a new aircraft management plan ‘Plan Buy Fly Sale’.

 

This plan will allow the organisation to buy or sell aircraft at any time, without waiting for them to be discharged or falling into deterioration”.

 

The last measure means other measures apart from the three, such as dealer control measure, or a measure to improve collaboration between the organization and the government.

 

In the board of director’s meeting in January 2020, the company’s executives will propose a new aircraft purchase plan, based on the existing framework for 38 aircraft at a maximum cost of Bt156 million.

 

Source: https://www.nationthailand.com/news/30379600

 

-- © Copyright The Nation Thailand 2019-12-19

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[z42]

Oh dear. So billions of dollars worth of new gear but still the same staff team, attitudes, and management.

 

They certainly know how to take the pi$$

[Creasy]

Just turn off the life support and let the airline flatline.

[steven100]

1 hour ago, webfact said:

Also, there are measures to improve the carrier's capacity by using technology, and to control and reduce the organisation’s expenditure by applying a new aircraft management plan ‘Plan Buy Fly Sale’.

1 hour ago, webfact said:

This plan will allow the organisation to buy or sell aircraft at any time, without waiting for them to be discharged or falling into deterioration”.

not sure how this application is going to add substantial revenue which is urgently needed, unless of coarse they are looking at selling most of their aircraft to meet the mounting losses.

Just sell the whole thing off as is ……   let someone else run it who know's what they are doing  !!  imo

 

 

 

Edited December 18, 2019 by steven100

[bluesofa]

1 hour ago, webfact said:

The ‘preferred seats’ service has been well received, expected to increase THAI's revenue by least Bt70 million per month”, the president said.

I haven't travelled by air for a few years now, but am baffled that people pay more to have a 'seat with extra space'. Aren't they all the same size in, say, economy?

Having said that, what sort of premium are they likely to pay in order to generate 70 million Baht a month?

[saengd]

10 minutes ago, bluesofa said:

I haven't travelled by air for a few years now, but am baffled that people pay more to have a 'seat with extra space'. Aren't they all the same size in, say, economy?

Having said that, what sort of premium are they likely to pay in order to generate 70 million Baht a month?

The seats are usually the same but greater leg room seats attract a premium. The seat pitch in economy these days can be so tight as to make any length of flight seriously uncomfortable for economy passengers who are six feet tall and above. Which is why exit rows and bulkhead seats are prized so highly.

 

As for premium: a round trip London/Bangkok visa BA can be had for around 500 Pounds, if purchased in the UK, an exit row or bulkhead row seat can add 100 Pounds to that price, each way!

 

"For extra legroom, exit rows seats are available on longer international flights in World Traveller starting from £50/€60/$75". 

 

https://www.britishairways.com/en-de/information/atom/seating/choosing-your-seat

Edited December 18, 2019 by saengd

[steven100]

THAI's Premium Economy Class, provides an enhanced dimension in passenger choice over the airline's longest routes. In the THAI B777-300ER, a segregated cabin offers just 18 Premium Economy Class seats.

Thai - Economy has 36" of legroom which is about 5" more than U.S. domestic planes. Premium Economy has 42". The service and food is the same. Also no difference in in flight entertainment. The A340 has monitors built in to the seat backs and a choice of about 30 movies and games to pass the time.  Cost upgrades vary depending on the route, however prices start at around $199US for promo deals on the premium upgrade.

[ezzra]

2 hours ago, webfact said:

THAI president Sumeth Damrongchaitham said a separate proposal for the purchase of new aircraft will also be submitted.

Ahh, when in doubt and the business is in the crapper expand and buy more new planes why don't you?...is there anyone there at all, who KNOWS how to run an airline?...

[bluesofa]

25 minutes ago, steven100 said:

THAI's Premium Economy Class, provides an enhanced dimension in passenger choice over the airline's longest routes. In the THAI B777-300ER, a segregated cabin offers just 18 Premium Economy Class seats.

Thai - Economy has 36" of legroom which is about 5" more than U.S. domestic planes. Premium Economy has 42". The service and food is the same. Also no difference in in flight entertainment. The A340 has monitors built in to the seat backs and a choice of about 30 movies and games to pass the time.  Cost upgrades vary depending on the route, however prices start at around $199US for promo deals on the premium upgrade.

Thanks for that.

I'm showing my ignorance now - I had always thought economy was economy. I never knew there was a cunning plan to separate you from more of your cash.

[saengd]

1 hour ago, ezzra said:

Ahh, when in doubt and the business is in the crapper expand and buy more new planes why don't you?...is there anyone there at all, who KNOWS how to run an airline?...

Buying newer planes can actually improve airline profitability, newer planes have better fuel consumption, require less costly maintenance, almost certainly have cheaper leasing costs and are more attractive to passengers.

[Momofarang]

1 hour ago, bluesofa said:

Thanks for that.

I'm showing my ignorance now - I had always thought economy was economy. I never knew there was a cunning plan to separate you from more of your cash.

On long haul flights 4 (or 6) inches make a hell of a difference, when it comes to legroom. As well as for any other illicit activity in the lavatories.

[klauskunkel]

4 hours ago, webfact said:

a new aircraft purchase plan, based on the existing framework for 38 aircraft at a maximum cost of Bt156 million.

That is cheap. That's about 135,000 USD per plane...cheaper than some cars...

Looking at that sentence a bit longer, I finally understood: It's not 38 aircraft for 156 mio bt, it's the purchase plan itself that costs 156 mio bt. Now it makes sense. Thai sense.

[BobbyL]

The ‘preferred seats’ service has been well received, expected to increase THAI's revenue by Bt70 million per month”, the president said.

 

So they're expecting to be making around $2M a month because of offering seat selection beforehand. Approx $66,000 a day ????????????

 

 

[Searat7]

4 hours ago, steven100 said:

not sure how this application is going to add substantial revenue which is urgently needed, unless of coarse they are looking at selling most of their aircraft to meet the mounting losses.

Just sell the whole thing off as is ……   let someone else run it who know's what they are doing  !!  imo

 

 

I think that there must be considerable pressure to sell the A-340 airplanes which have been mothballed for many years and are certainly deteriorating. The last time I checked there were 9 left after the government took one for its use. Those planes are extremely undesirable because they have 4 engines and burn too much fuel.

[Burma Bill]

I notice there is no plan included to downsize on staff and make them more efficient!

[RichardColeman]

I'm betting plan A is increase prices

[ParkerN]

One definition of insanity is 'doing the same thing over and over and expecting a different result'.

 

Except in Thailand it seems. New Year, new inititive. Same as last year but different.

 

These people truly are hopeless, they don't have a clue.

 

 

[madmitch]

THAI has been left behind. They are not innovative. All their "ideas" are just copied from other airlines.

 

New, outside blood is definitely needed within the management but with the current military led Government they will continue to look after their own and appointees will continue to be from the Military.

 

The brand still has a good image....until someone flies on their older planes with 1990s seats and entertainment systems. BA's not a lot better in all honesty but they remain profitable as they are properly run.

Edited December 19, 2019 by madmitch

[saengd]

"The brand still has a good image....until someone flies on their older planes with 1990s seats and entertainment systems".

 

Agreed, which is why it's a good idea to invest in new planes.

[saengd]

8 minutes ago, ParkerN said:

One definition of insanity is 'doing the same thing over and over and expecting a different result'.

 

Except in Thailand it seems. New Year, new inititive. Same as last year but different.

 

These people truly are hopeless, they don't have a clue.

 

 

OK airlines expert, tell us what you would do, given your huge breadth of airline experience.

[steven100]

39 minutes ago, Burma Bill said:

I notice there is no plan included to downsize on staff and make them more efficient!

don't be silly Bill ,  that would involve common sense …. that just doesn't happen in Thailand

[sammieuk1]

The £35 per kilo excess baggage still not working yet then????

[Jooss]

Thai Airways did already changes. We used to travel between Paris and Bangkok in a comfortable A380 with a professional crew. 
Our last flight was in an old A330 with a young inexperienced crew and non motivated.
Moreover, prices followed the level of the baht and Thai Airways is no more competitive. 
Bye bye !

[metisdead]

An insulting troll post has been removed. 

[mikebell]

All Preferred seats have been taken by Preferred passengers who don't pay anyway.

[Bassosa]

Other airlines have been upselling exit row seats and bulkheads for years now. Thai is late to that party. But anyway, it's probably a good measure, but they would need to stick with it. Don't have the VIPS take those extra legroom seats and have them sit next to people who actually paid for them.

Other than that, what better airline to turn around than Thai? It's got a proper legacy. 

I agree that the new planes must come. It might sound counterintuitive to spend money, but it's the way forward.

 

Then you'd have to define some USP's, which is super easy in Thais case. Think about it, what makes Thailand great? Two things spring to mind: the food and the elegant women. Apply that to your business model.

So the food should be delicious, and it should be mostly Thai. AirAsia has excellent food and is a low cost carrier, they apparently know how to do it, so why not Thai? Curries taste great when heated up in the microwave. Rice no problem either.

 

Air hostesses should be graceful and elegant, much like Singapore Airlines.

 

Thai Airways needs to refind its spirit, it's pride.

They probably need some outside help to get them back on track. Fresh pair of eyes, not stifled by the Thai way of doing things, the work culture. Some serious culling needs to take place in the workforce too.

These last two things won't happen unfortunately.

Edited December 19, 2019 by Bassosa

[ParkerN]

33 minutes ago, saengd said:

OK airlines expert, tell us what you would do, given your huge breadth of airline experience.

I have no airline qualifications and am therefore unsuited to run THAI. Mind you, judging by their results, so are most Directors and every CX over the past several years.

 

I don't know what THAI will require to be rehabilitated, but (it seems) neither do the government or THAI management. The track record is not great.

 

What would *you* recommend?

[saengd]

9 minutes ago, ParkerN said:

I have no airline qualifications and am therefore unsuited to run THAI. Mind you, judging by their results, so are most Directors and every CX over the past several years.

 

I don't know what THAI will require to be rehabilitated, but (it seems) neither do the government or THAI management. The track record is not great.

 

What would *you* recommend?

You wrote in your earlier post that "These people truly are hopeless, they don't have a clue' how to run or turn around an airline, I presumed you wrote that because you were in a position to judge, apparently that's not so.

[Prince77]

As a start stop giving free premium seats to friends, cronies and everybody in uniform. Re-fresh the frequent Flyer program to be more attractive, offer a Status match to steal customer from other airlines and start taking care about paying customers.

[ParkerN]

34 minutes ago, saengd said:

You wrote in your earlier post that "These people truly are hopeless, they don't have a clue' how to run or turn around an airline, I presumed you wrote that because you were in a position to judge, apparently that's not so.

Everyone has an opinions, lots have opinions about Thais in general, I suggest you canvass the posts on TV. I think you'll find many more people agreeing with me than disagreeing; in fact I am much more qualified to comment on the general hopelessness of Thais than I am to comment on THAI, but since THAI is, well, THAI, I suspect the general malaise afficting Thais is also present in THAI. Perhaps you know better?