Prayut warns THAI that govt will step in if bailout fails

[ChipButty]

1 hour ago, steven100 said:

I wouldn't say RB was a good example .... he's asking for a bailout and he's throwing in his island as part of the deal.

That island is only worth 80 million pound

[ChipButty]

Thats an obscene amount of money to be throwing at what is already a white elephant, How many ordinary Thai people could benefit from that amount?

[kingstonkid]

If you want to fix Thai the government needs to sell 25-$0% o  can it's shares dissolve the board and let the shareholders choose the executive and the new rules And comp packages

[Darkside Gray]

They are already in, theirs no need for the step, they own 51%of this over inflated poorly managed airline. they need a management structure that knows how to run a airline not a air force ( they do that badly also 0.

[ParkerN]

16 hours ago, RickBradford said:

Perhaps Prayut will engage in that decisive out-of-the-box thinking Thais are so well known for and ask: "Why do we actually need a national airline?"

 

"out-of-the-box thinking Thais are so well known for"

 

 

Roger that...

 

 

 

[Rimmer]

An inflammatory post has been removed

[Almer]

I am not allowed to work here, but i think i am allowed to offer advice based on my 30 years of business management.

it is a good brand admired by passengers at every airport, who when of to Spain wish they could board the big A380 and be off to Los.

It isn't to big it needs to be big it sits at hub for international onward travel.

It needs a professional team to go in with little or no interference and be paid on results, a wing commander etc with little or no business plan has no chance when it haemorrhages money at a constant flow, a new CEO doesn't need to no one end of a 747 from the other he may  well be an  expert in the manufacturing of crisps it matters  not he needs to understand how and without feeling to turn a business around ( without interference).

[soi3eddie]

3 hours ago, jaiyen said:

They need to get in some expert westerners who know how to run an airline. Richard Branson is not busy right now !!

Branson didn't get rich by running sustained profitable businesses - Virgin has more losses than profits in last 10 years. He made his money by building businesses and then flogging off 49% to others pocketing the money and avoiding taxes (Singapore bought 49% and then offloaded it to Delta). Fair play and a good strategy. He is customer service minded though and looks to hire staff who can think on their feet and make decisions to satisfy customers. Might be an issue with Thai way of thinking as if it's not in the instruction book then "mai dai". Branson will also quit when he knows there's no future with a business and after all the fanfare of opening, will quietly close or flog off an ailing enterprise. Virgin just anounced that they will quit operations out of Gatwick and slash employees by 30%.

[holy cow cm]

16 hours ago, steven100 said:

I just hope our guy Khun Prayut follows through with his threat and cuts the airline into pieces.

“This is the last time that Thai Airways will receive support from the government. If the situation worsens, there will be a complete structural overhaul [of the airline],” Prayut said.

Sorry to drop the bomb, but he is not My guy or My family's guy. 

[Artisi]

1 hour ago, ChipButty said:

Thats an obscene amount of money to be throwing at what is already a white elephant, How many ordinary Thai people could benefit from that amount?

You mean the plebs, the underclass, the poor etc. should be considered over and above the fiasco of an airline and all it's hanger-on's - think you need some thinking re-alignment ????

[holy cow cm]

The military and government are already head deep in it. what a lie. How could the Government make it better when they are ruining everything they touch already. Who in the heck does this clown think he is.

[steven100]

3 minutes ago, holy cow cm said:

Sorry to drop the bomb, but he is not My guy or My family's guy. 

sorry to hear that

[Chelseafan]

46 minutes ago, holy cow cm said:

Sorry to drop the bomb, but he is not My guy or My family's guy. 

 

And he'll certainly never be the fall guy....

 

[Burma Bill]

16 hours ago, DirtyHarry55 said:

They should cut their salaries they're all over paid on Thai standards.

and "downsize" on inefficient staff!

[AgMech Cowboy]

I didn't know there were so many former airline executives living on Thailand with such expert knowledge on how to run one.

[Mavideol]

16 hours ago, steven100 said:

wonder what the 10 goals are ..... I hope it's sack all the directors & management 

or cut their pay check to less then half and completely removed ANY/ALL bonus

[ParkerN]

1 hour ago, AgMech Cowboy said:

I didn't know there were so many former airline executives living on Thailand with such expert knowledge on how to run one.

There aren't. Even at Thai, there aren't any.

 

Especially at Thai, there aren't any.

 

Situation normal for Thailand... the hub of expertise...

Edited May 6, 2020 by ParkerN

[samran]

6 minutes ago, AgMech Cowboy said:

I didn't know there were so many former airline executives living on Thailand with such expert knowledge on how to run one.

Actually, you'd be surprised. I know three, and I'm not even trying...

 

THAI chews them up and spits them out, which is the problem.

[eyup]

27 minutes ago, AgMech Cowboy said:

I didn't know there were so many former airline executives living on Thailand with such expert knowledge on how to run one.

Well there are actually!  Some with a better idea of what to do to turn Thai around than others it has to be said tho. 

 

Fact is they would NEVER be allowed near the company to sort it out

 

And to another poster , BTW not all Irish CEO have been successful in the airline business

[RichardColeman]

Sounds like just large payoff redundancies for fat cat old military/air force

[rickudon]

Pay cuts .... incentivise the work force, put them all on 300 baht a day .... that's good enough for the majority of Thais, why not ALL the airline staff? They can then have a share of any profits ????!

[Jcord1]

how about focusing on the 5000 baht payment to the people who need it.

[MikeN]

19 hours ago, steven100 said:

“This is the last time that Thai Airways will receive support from the government. If the situation worsens, there will be a complete structural overhaul [of the airline],” Prayut said.

 

Translation .... get rid of the Air Force has beens who are currently running it, and replace them with his Army buddies.

Cannot bring in a real management team as they would n't let "somebody" pilot the plane as if it was his private big boy's toy.

 

[yellowboat]

6 hours ago, steven100 said:

very few airlines have been making a profit over the past and it's more of a case of which has been losing the least $$$ ....  This delinquent airline needs chopping up and hire a decent international CEO. 

It has been that way since the green team rolled into government house.  He is just getting to it now?  He is too stupid and xenophobic to agree to a non Thai.  THAI has five A380's which are flying financial disasters.  He will need to get ride of those.  He will probably just  take it over and let his cronies run wild.

 

Over ten years ago, I flew Thai often.  They had the Bangkok, Hong Kong, Taipei route.  It was not expensive and flew often.  Today, I would not even think about flying junta airlines.  

[new2here]

21 hours ago, steven100 said:

I am sure Khun Prayut Chan O Cha is not happy with the way THAI airways has been losing money over the past three years and more .... has it ever made a profit  ?

Sack all the directors, managers, airline staff from upper level management and start again, cut the airline up into smaller pieces and make a budget airline from it's wasted stock.

If anyone can assert their authority on these clowns it's Khun Prayut Cha O Cha.

I'm glad to see he's discussed this issue and hopefully kills the old THAI.

I’m not so sure that breaking up TG into smaller pieces and going the LCC-style carrier route is a good move.

 

The LCC market in Thailand (speaking for Thai registered carriers only) appears to me to be well saturated with Thai Air Asia, Thai VietJet and Thai Lion.  Thai AirAsia already enjoys strong market share holding, name recognition and one of the largest networks - plus, they offer connectivity via their other national partners (the other AirAsia arms in the region)...

 

newer entrants Thai VietJet and Thai Lion don’t yet have the reach, network or market share of Thai AirAsia, their presence at minimum act as a means to keep downward pressure on fares where they compete.

 

so, given the market saturation and market dominance by Thai AirAsia, I can’t see TG moving to a LCC-style carrier and going head-to head with AirAsia as being wise.

 

TG remaining as a legacy carrier to me plays to their strengths... Through Star Alliance and their geographic base (BKK) they have fairly solid inbound/outbound interline traffic possibilities as BKK is within 3hrs to most of central/south Asia — and there really is no other competing carrier or city, that offers the same...  HKG offers solid options to North Asia/PRC and SIN offers solid options to South Asia/Australia - but neither offer the same level as BKK does for South/Central Asia.

 

yes.. Thai has been mismanaged for quite some time.. and yes, they’ve got a lot of restructuring work ahead if they want to “right” this business going forward... but to me, breaking it up into smaller units (which means each new piece would presumably have their own independent management structure, head count and costs) doesn’t play to TGs strengths and puts them head-to-head against a well established market leader in an already crowded, low-yield marketplace. 
 

Thais smile (WE) arm addresses TGs exposure to LCC style competition in their key domestic markets but doesn’t dilute their mainline brand.

Edited May 6, 2020 by new2here

[Krataiboy]

Bring out the Branson!

[GinBoy2]

9 hours ago, steven100 said:

very few airlines have been making a profit over the past and it's more of a case of which has been losing the least $$$ ....  This delinquent airline needs chopping up and hire a decent international CEO. 

Actually that factually incorrect.

 

Most airlines have been making a ton of money over recent years.

 

The legacy airlines after the 911 crash, all pretty much re-structured and turned their company around.

 

Different models emerged.

 

In the US, mainline didn't abandon secondary routes, but they farmed them out to secondary carriers, gave the regional jets a nice paint job, with a twist; United Express, Delta Connection, American Eagle, but all with that nice little decal by the door as you enter saying 'operated by GoJet, Skywest, Endevour' the list goes on.

But if the secondary carrier goes bust, or just decides to hang up the shingle cos it too hard, as TransStates just did, you put that shiny paint job on another one.

 

Now the reason for this is because the secondary carriers pay a Hell of a lot less to their staff than mainline. A regional pilot is earning somewhere between $60-80K versus at least double that for mainline. So then the pilots negotiate the ratio of aircraft over 50 seats that the mainline can contract from the regional so they don't impact mainline staffing.

 

Europe went down pretty much the pure LCC route, and of course Michael O'Leary of Ryanair is the Godfather of that, having copied verbatim the Southwest model, which somewhat straddles the legacy and the outsource models.

 

Then you get to Thailand. 

Air Asia Thailand, Lionair are pure LCC's. Then you get to ThaiSmile a wholly owned subsidiary of Thai Airways, with a cost structure barely below that of the parent, but with a snazzy paint job. Of course they tried to reduce cost by having everything out of DMK to reduce landing fee's, but then the reality of their cost structure being so high versus the others, it defeated their sole purpose as a feeder into TG mainline at BKK. Do they ever think about strategy???

 

TG is the Lakorn that keeps on giving, so I'm not even going to try to rehash the rest.

 

But there are models that work, and have generated huge profits over the past decade until this disaster, so to try to suggest all airlines have been losing money, and TG is just one if them is pure nonsense.

Edited May 6, 2020 by GinBoy2

[DrTuner]

So they'll paint them in army colors and give generals free flights?

[samran]

16 hours ago, Krataiboy said:

Bring out the Branson!

Not needed. Thai are already good a skivving off government money. They don't need his assistance to do that.

[ParkerN]

19 hours ago, GinBoy2 said:

Do they ever think about strategy???

Yes. In the 3 minutes between waking and their morning constitutional on the po. Otherwise, not really, not the Thai way.