Thai Airways says cuts about 240 executive positions

 

FILE PHOTO: Workers service a Thai Airways Airbus A380-800 aircraft at Bangkok International Suvarnabhumi Airport, Thailand September 3, 2019. REUTERS/Amr Abdallah Dalsh

 

BANGKOK (Reuters) - Thai Airways International Pcl on Friday said it had cut around 240 executive positions at the airline as part of its bankruptcy restructuring process.

 

The announcement comes as the company nears a deadline to submit its restructuring plan to a bankruptcy court for creditor approval and as the fallout of the coronavirus pandemic adds to the woes for an airline that has been struggling since 2012.

 

"The number of executive positions has been reduced from 740 to about 500," the airline said in a statement, adding that the move would increase efficiency by going from eight supervisory levels to five.

 

The court's deadline for the carrier to submit its restructuring plan is March 2, after which the airlines' creditors will consider if restructuring will proceed.

 

Thai Airways, which has around 21,000 employees, said it had introduced a number of voluntary resignation agreements, but did not specify how many staff had applied.

 

"A successful restructuring will require cooperation from all parties, including creditors and employees," the airline's acting president Chansin Treenuchagron said.

 

(Reporting by Chayut Setboonsarng; Editing by Ed Davies)

 

-- © Copyright Reuters 2021-02-19

 

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Were these the dead ones....

44 minutes ago, webfact said:

increase efficiency by going from eight supervisory levels to five.

Everybody has to have their little fiefdom.....

regards worgeordie 

1 hour ago, webfact said:

"The number of executive positions has been reduced from 740 to about 500," the airline said in a statement, adding that the move would increase efficiency by going from eight supervisory levels to five.

Still waaaay too top heavy. No wonder the Planes cannot fly.

https://news-sky-com.cdn.ampproject.org/v/s/news.sky.com/story/amp/thai-airways-announces-staff-cuts-in-desperate-bid-to-avoid-bankruptcy-12222357?amp_js_v=a6&amp_gsa=1&usqp=mq331AQFKAGwASA%3D#aoh=16137277538367&csi=0&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From %1%24s&ampshare=https%3A%2F%2Fnews.sky.com%2Fstory%2Fthai-airways-announces-staff-cuts-in-desperate-bid-to-avoid-bankruptcy-12222357

 

The newspaper's economist, Chartchai Parasuk, said: "It seems like Thai Airways is preparing itself to walk down the bankruptcy route.

"But before facing the cruel fact, it wishes to save its four siblings - Thai Catering, Thai Cargo, Thai Ground Services, and Thai Technical.

"Three siblings - Thai Crew Centre, Thai Flight Training Centre, and Thai Smile - will not be saved.

"But without the mother who carried 24.5 million passengers a year and flew 80 aircraft around the world, these four siblings will find it difficult to survive on their own.

"I do not want to see Thai Airways die. The country should not risk leaving more than 10 million cash-paying foreign tourists in the hands of foreign carriers."

24 minutes ago, bermondburi said:

https://news-sky-com.cdn.ampproject.org/v/s/news.sky.com/story/amp/thai-airways-announces-staff-cuts-in-desperate-bid-to-avoid-bankruptcy-12222357?amp_js_v=a6&amp_gsa=1&usqp=mq331AQFKAGwASA%3D#aoh=16137277538367&csi=0&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From %1%24s&ampshare=https%3A%2F%2Fnews.sky.com%2Fstory%2Fthai-airways-announces-staff-cuts-in-desperate-bid-to-avoid-bankruptcy-12222357

 

The newspaper's economist, Chartchai Parasuk, said: "It seems like Thai Airways is preparing itself to walk down the bankruptcy route.

"But before facing the cruel fact, it wishes to save its four siblings - Thai Catering, Thai Cargo, Thai Ground Services, and Thai Technical.

"Three siblings - Thai Crew Centre, Thai Flight Training Centre, and Thai Smile - will not be saved.

"But without the mother who carried 24.5 million passengers a year and flew 80 aircraft around the world, these four siblings will find it difficult to survive on their own.

"I do not want to see Thai Airways die. The country should not risk leaving more than 10 million cash-paying foreign tourists in the hands of foreign carriers."

I was going to mention this but you beat me to it. If Thai Smile goes it will be a shame as I live in Isaan and use Thai Smile most of the time. The service is always good and I don't have to worry about baggage charges. It also avoided the need to change airports between BKK and DMK although Thai VietJet seem to be using BKK now.

740?!? That's insane. 500 is still ridiculous. Becoming much clearer why the airline has been underperforming for so long. Drop that number into the double digits and they'll be making progress.

4 hours ago, webfact said:

adding that the move would increase efficiency by going from eight supervisory levels to five.

Get that fat cutting knife out and they can make it even more efficient.  Most organization would be better off with less management and more empowered workers.  Never happen in Thailand tho'.  The culture just isn't set up for it.  Well, unless and youth start moving into positions of power and make a paradigm shift.

The 500 remaining executives will no doubt retain their free 1st class seats for themselves and immediate family members. Can you imagine the cost right off for this perk would be X$millions per year...

Will the  executive cuts, solve the issues of questionnable customer service, overrated ticket prices and general handling inefficiency ?

They probably had no idea what they were supposed to be managing, similar to the armed services here in Thailand where there is roughly one general for every 212 troops

16 hours ago, webfact said:

"The number of executive positions has been reduced from 740 to about 500," the airline said in a statement, adding that the move would increase efficiency by going from eight supervisory levels to five.

 

Is this world wide or just in Thailand? If just in Thailand suggest you cut another 300

If and I say IF it's true ,then it's a start but nowhere near enough.

 

16 hours ago, webfact said:

"The number of executive positions has been reduced from 740 to about 500,"

How many of those are the living dead!

 

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16 hours ago, webfact said:

The court's deadline for the carrier to submit its restructuring plan is March 2

 

Meh.

 

They can extend this deadline out a few years.

 

Expect they will on/about 1 March.

 

 

why would they even have 240 execs, they only have 4 passengers?

Many are sufferings in Thailand and you are worried about 240 executives? What about the millions that have no jobs in the tourist industry???

The only solution for this Company is to have a team of Consultants carry out a Work Study on all aspects of the business and then to produce a comprehensive report on what needs to be changed, including the chain of command, job descriptions, flow charts, spreadsheets et al.  It sounds like they are holding their hand up in the air to test the wind direction, which is destined to fail.  They need a professional consultancy, not a "Guess what" attitude.

Still fatter than Donald Trump.  Still 5 layers??? Cut some more.

750 executives managing 21,000 employees.  Any good business person knows that management should never be more than 10% of total employees...  That means 210 executives.  This is basic math which most Thai’s don’t understanding.  Same goes with landlords.  If your charging 70,000 baht for rent and a customers asks you for a 5000b discount or he can’t continue to rent from you, the Landlord (who think that they’re intelligent) will say no and loose the 70k per month in hoping of finding another tenant.  However, a loss of 5000b for an entire year would be a loss of less money than losing 1 month’s rent.  Once again, simple math.  

 

So to all the Thai Airways executives who are reading this, LEARN SIMPLE BASIC MATH.  Cut all the executive staff positions until you have only 50 Management staff.  You’re not even flying at a 50% level.  If you can’t or won’t reduce the unnecessary executive staff (Family, friends etc), then bring in someone who will or you can hire me!  I have no problem in getting rid of dead weight. 

18 hours ago, webfact said:

"The number of executive positions has been reduced from 740 to about 500," the airline said in a statement, adding that the move would increase efficiency by going from eight supervisory levels to five

Keep chopping that's still way to top heavy.

3.4% of the entire staff was on "executive" level; now reduced to 2.4%. Well, if you ask me, still far too many around the trough which has been feeding too many of those chosen ones. This airline goes down the tube, official reason will be "Covid-19" as the standard excuses and the trails being mopped up by the tax payers.

It still surprises me, that all those Low Cost Carriers (LCC) like WE, FD, DD and VZ - just to name a few - operated most of the time, some of them four flights a day on domestic runs. The state carrier meanwhile sits idle with a fleet of exceeding 100 aircraft all over Thailand's airport and licks its wounds of gross mismanagement for decades and does absolutely nothing to change its situation. Mind boggling and yes, maybe close the shop and throw away the key, the real culprits will never be facing the music. 

The organization chart explains a few things. The European route network makes you wonder about the relocation of capitals and destinations. The catering outdid themselves in 2017 with the inflight snacks served and more often than not, the seat on Thai Smile (WE) was a fraction of Thai Airways International (TG), albeit using the very same aircraft and service level. 

So, and now everyone is surprised, that this airline is going down the pan? 

2 hours ago, Bkk Brian said:

They probably had no idea what they were supposed to be managing, similar to the armed services here in Thailand where there is roughly one general for every 212 troops

I am a manager in Thailand and from what I have seen in general they do not have management skills. There are exceptions, of course. 

 

From what I see their style of management relies on typical Thai cultural tropes of being popular, non-confrontational, overly forgiving (even for instant dismissal cases such as theft or violent assault), inaction, indecisiveness, profligacy, poor checks and balances, etc.

 

I have even seen managers relying on supersitions such as feng shui, fortune tellers, amulets and even animal sacrifice (yes, I am not joking), to bring success, instead of actual business planning, execution and proper management. 

2 hours ago, PatOngo said:

18 hours ago, webfact said:

"The number of executive positions has been reduced from 740 to about 500,"

How many of those are the living dead!

500 past Retired Generals to lose their latest retirement nest egg jobs...

14 hours ago, Katipo said:

740?!? That's insane. 500 is still ridiculous. Becoming much clearer why the airline has been underperforming for so long. Drop that number into the double digits and they'll be making progress.

What did you expect from a country whose armed forces boast a 1,000 generals? That they're going to be economical with executive positions in the national airline? Or look at any given government department, where there always seem to be more state employees milling around than customers.  

Only 12000 more to go.

21 minutes ago, Mister MXYZPTLK said:

750 executives managing 21,000 employees.  Any good business person knows that management should never be more than 10% of total employees...  That means 210 executives.  This is basic math which most Thai’s don’t understanding.  Same goes with landlords.  If your charging 70,000 baht for rent and a customers asks you for a 5000b discount or he can’t continue to rent from you, the Landlord (who think that they’re intelligent) will say no and loose the 70k per month in hoping of finding another tenant.  However, a loss of 5000b for an entire year would be a loss of less money than losing 1 month’s rent.  Once again, simple math.  

 

So to all the Thai Airways executives who are reading this, LEARN SIMPLE BASIC MATH.  Cut all the executive staff positions until you have only 50 Management staff.  You’re not even flying at a 50% level.  If you can’t or won’t reduce the unnecessary executive staff (Family, friends etc), then bring in someone who will or you can hire me!  I have no problem in getting rid of dead weight. 

750 executives managing 21,000 employees.  Any good business person knows that management should never be more than 10% of total employees...  That means 210 executives

 

Hmmm, in my books, 10% of 21,000 is 2,100 and not 210

12 minutes ago, Mister MXYZPTLK said:

750 executives managing 21,000 employees.  Any good business person knows that management should never be more than 10% of total employees...  That means 210 executives.  This is basic math which most Thai’s don’t understanding.  Same goes with landlords.  If your charging 70,000 baht for rent and a customers asks you for a 5000b discount or he can’t continue to rent from you, the Landlord (who think that they’re intelligent) will say no and loose the 70k per month in hoping of finding another tenant.  However, a loss of 5000b for an entire year would be a loss of less money than losing 1 month’s rent.  Once again, simple math.  

 

So to all the Thai Airways executives who are reading this, LEARN SIMPLE BASIC MATH.  Cut all the executive staff positions until you have only 50 Management staff.  You’re not even flying at a 50% level.  If you can’t or won’t reduce the unnecessary executive staff (Family, friends etc), then bring in someone who will or you can hire me!  I have no problem in getting rid of dead weight. 

still 2100 people, reminds me of the Army / Airforce structure where you have about 70+% of non combat forces to support the 10 or 15% who really have to fight.

They also need to cut out the freebies given to all staff

From the top to the bottom 

Cant see much changing  but you can live in hope

Also their prices are a lot higher than need to be to compete 

With other airlines

28 minutes ago, Mister MXYZPTLK said:

750 executives managing 21,000 employees.  Any good business person knows that management should never be more than 10% of total employees...  That means 210 executives.

Your maths is off.

 

 

19 hours ago, webfact said:

"The number of executive positions has been reduced from 740 to about 500,"

reminds me of the management at my condo .... we have a manager to keep an eye on the acting/working manager, he/she doesn't do s..t....