Airlines will have to write-off 2021 without government support

[webfact]

 

By Panithan Onthaworn and Cod Satrusayang

 

Local airlines in Thailand say that without government support, 2021 will be a write-off for many companies and jeopardize both jobs and the overall market.

 

Thailand has closed its borders since the second quarter of last year to deal with the Covid-19 pandemic. As a result, both the tourism and the airlines industry have suffered tremendously with companies unable to cope with the loss in revenue.

 

Several airlines have filed for reorganization and help from the Central Bankruptcy Court including Thai Air Asia, Nok Air, and national flag carrier Thai Airways International.

 

Full story: https://www.thaienquirer.com/31328/airlines-will-have-to-write-off-2021-without-government-support/

 

-- © Copyright Thai Enquirer 2021-08-17

 

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[ThailandRyan]

Without travel, even domestic and within S.E. Asia, all airlines are in a world of hurt.  Without the assistance of some type of bailout there will be many that go under or join together to become a downsized company starting anew.  Without revenue this is going to be hard on everyone as when flights do resume the costs will be more to fly as a passenger.

[steven100]

one can feel for the Nok Air's, Lion air and Bangkok Airways,    but not for Thai airways as they got everything they deserve.  

[tonray]

I guess they burned thru all the 'refunds' they never issued for cancelled flights, at least in Air Asia's case. It's a sad situation for sure globally, I think some evolutionary changes need to happen for the future...the business nearly killed itself off in the 80's with price wars and now circumstances beyond their control again will likely lead to major shuffling of carriers and routes. 5 years from now I think a completely different set of rules for travel for everyone involved.

[harada]

10 minutes ago, steven100 said:

one can feel for the Nok Air's, Lion air and Bangkok Airways,    but not for Thai airways as they got everything they deserve.  

I would add Air Asia to that list, after becoming dissatisfied with Thai I flew with them for many years, during the last coup they called me 3 times (In Australia)to apologise for the inconvenience of having to change my flight, something very rare with airlines now, I hope that they survive this.

[ezzra]

21 minutes ago, steven100 said:

one can feel for the Nok Air's, Lion air and Bangkok Airways,    but not for Thai airways as they got everything they deserve.  

Come come now, yes, the leadership and management of THAI wear so sure of their position in the market as a government backed national airline that they forgot how airline should work and service paying customers, but what about the thousands employees that have all lost their jobs now not due to their fault?... 

[steven100]

6 minutes ago, harada said:

I would add Air Asia to that list, after becoming dissatisfied with Thai I flew with them for many years, during the last coup they called me 3 times (In Australia)to apologise for the inconvenience of having to change my flight, something very rare with airlines now, I hope that they survive this.

yeah ,  although Air Asia did play alot of tricks with customers money and their refunds weren't very prompt that's for sure.  It took me 7 months to get my money. It was for thousands ... $

I know AA is looking at other markets now ....AirAsia Plans U.S. Listing of Digital Business as Early as 2021 ...

 

Jul 7, 2564 BE — WATCH: AirAsia Group CEO Tony Fernandes discusses travel in ... The airline is about “targeting the markets that no one is looking at,

[steven100]

4 minutes ago, ezzra said:

Come come now, yes, the leadership and management of THAI wear so sure of their position in the market as a government backed national airline that they forgot how airline should work and service paying customers, but what about the thousands employees that have all lost their jobs now not due to their fault?... 

agree ,  the employees are the one's who suffer,  where as it should be the CEO, CFO and a few others. 

scum comes to mind .......  

[sanuk711]

2 hours ago, steven100 said:

one can feel for the Nok Air's, Lion air and Bangkok Airways,    but not for Thai airways as they got everything they deserve.

For ripping off the public , I would say BKK Airways would take the Trophy ---ownership of an certain Airport, allows them to charge about 500% more & stop all other Airlines in competition using it.

92.31% owned by a certain person.

 

 

Edited August 17, 2021 by sanuk711

[DLock]

4 hours ago, webfact said:

Local airlines in Thailand say that without government support, 2021 will be a write-off for many companies and jeopardize both jobs and the overall market.

Why should local airlines get Government support?

 

No one else has...

[BritManToo]

2 minutes ago, DLock said:

Why should local airlines get Government support?

 

No one else has...

I always thought the governments should pick up all the bills of companies they have stopped operating by their foolish reactions to a trivial disease. It's not the airlines fault they can't operate.

[DLock]

10 minutes ago, BritManToo said:

I always thought the governments should pick up all the bills of companies they have stopped operating by their foolish reactions to a trivial disease. It's not the airlines fault they can't operate.

I agree with your statement, and that's my point.

 

There are millions of businesses that have gone under due the Government closing borders to the tourists that funded the businesses. No fault of the company, management or staff.

 

Why should the airlines get Government support, when no other businesses were bailed out?

 

Level playing field.

[Bluespunk]

5 hours ago, webfact said:

national flag carrier Thai Airways International.

Asking for help and being bailed out is a yearly event for this entity. 
 

Sarcasm alert. 

[hotchilli]

8 hours ago, ThailandRyan said:

Without travel, even domestic and within S.E. Asia, all airlines are in a world of hurt.  Without the assistance of some type of bailout there will be many that go under or join together to become a downsized company starting anew.  Without revenue this is going to be hard on everyone as when flights do resume the costs will be more to fly as a passenger.

I can name one that will survive.

[ukrules]

2022 is going to be no 'walk in the park' either....

[Srikcir]

4 hours ago, DLock said:

Why should local airlines get Government support?

 

No one else has...

When the government has repeatedly capitalized a Thai airlines which it held a majority stake in despite a decade of losses, why shouldn't it also support local airlines?

[MrJ2U]

I don't see any improvement for domestic air travel.

 

Not much money for the average Thai to fly, pay for hotels and food, and also worry about getting sick.

 

Staying close to home and saving your money for emergencies is more apt at the moment and foreseeable future.

 

I think the safest and cheapest way at the moment is drive yourself and family.  

 

More fun also.

Take your time.

 

Edited August 17, 2021 by MrJ2U

[MrJ2U]

5 hours ago, hotchilli said:

I can name one that will survive.

Which one?

Thai?

 

[MrJ2U]

11 hours ago, sanuk711 said:

For ripping off the public , I would say BKK Airways would take the Trophy ---ownership of an certain Airport, allows them to charge about 500% more & stop all other Airlines in competition using it.

92.31% owned by a certain person.

 

 

Bangkok airways is the Achilles heel for the needed tourists.  14,000 baht roundtrip from Bangkok---forget it.

 

I ended driving there from Issan.

 

Our family had a blast stopping anywhere we wanted

 

Finally took the car ferry over.  Beautiful island.

 

[MrJ2U]

10 hours ago, BritManToo said:

I always thought the governments should pick up all the bills of companies they have stopped operating by their foolish reactions to a trivial disease. It's not the airlines fault they can't operate.

Why?

 

They don't even pick up the tab for vaccines.

[MrJ2U]

13 hours ago, ezzra said:

Come come now, yes, the leadership and management of THAI wear so sure of their position in the market as a government backed national airline that they forgot how airline should work and service paying customers, but what about the thousands employees that have all lost their jobs now not due to their fault?... 

They haven't.

 

There still 14,000 employees doing nothing.

 

Used to be 21,000 until they 'trimmed" it last year.

 

A bloated and terribly managed company

 

[canthai55]

20 hours ago, BritManToo said:

I always thought the governments should pick up all the bills of companies they have stopped operating by their foolish reactions to a trivial disease. It's not the airlines fault they can't operate.

The Gov't has no reason to be in business other than greed.

They should be in charge of infrastructure, and leave the business to the private sector.

Gov't by the people, FOR the people. Not corporatocracy as it is now.

No bailouts for banks, airlines, anyone. Go broke - Bye Bye

Competition will level the playing field, and only the strong will survive.

 

[DLock]

18 hours ago, Srikcir said:

When the government has repeatedly capitalized a Thai airlines which it held a majority stake in despite a decade of losses, why shouldn't it also support local airlines?

Dumb reason.

 

Let them fail.

[SomchaiCNX]

On 8/17/2021 at 6:57 AM, steven100 said:

one can feel for the Nok Air's, Lion air and Bangkok Airways,    but not for Thai airways as they got everything they deserve.  

NO Steven NL the people working at Thai did not deserve this. Your favorite general and his cronies together with Taksin are to blame. THe (former) big boss of  NOk was an A hole, LIon has a very bad safety record and Air Asia was helped by the Taksin family. THai Viet jet is charging young pilots 2.800.000 for their rating. It is called Pay 2 Fly and banned in Europe and other parts of the world. Bangkok Airways is the only one on your list that deserves some sympathy. 

[BritManToo]

2 hours ago, canthai55 said:

They should be in charge of infrastructure, and leave the business to the private sector.

I would class airlines/shipping/railways/busses as infrastructure.

[SomchaiCNX]

12 hours ago, MrJ2U said:

They haven't.

 

There still 14,000 employees doing nothing.

 

Used to be 21,000 until they 'trimmed" it last year.

 

A bloated and terribly managed company

 

Your are partly right at least the last sentence. Now who managed it, who drained the money? Not their staff. Doing nothing, yes you may not have noticed but nobody is flying. Do not forget the CAAT, another incompetent department. The AOT, look at all the members of the board, most these departments are filled with people from the armed forces. The reason they continued with Boeing is that most of the pilots on Boeing are ex military and those on Airbus are not. Those who made cut and stayed are mostly connected, not difficult to understand.

[robblok]

23 hours ago, DLock said:

I agree with your statement, and that's my point.

 

There are millions of businesses that have gone under due the Government closing borders to the tourists that funded the businesses. No fault of the company, management or staff.

 

Why should the airlines get Government support, when no other businesses were bailed out?

 

Level playing field.

They can't afford to pay everyone. In my country they did pay almost everyone. Sure not back to their normal profit levels but out of losses and people got money too. But this is unthinkable in Thailand as they just can't afford it or need to loan a lot of money. 

[NoshowJones]

On 8/17/2021 at 10:31 AM, DLock said:

Why should local airlines get Government support?

 

No one else has...

Maybe local airlines bosses are among the unelected PM's rich friends, like a lot of business owners who depended on Songcran to boost their profits, hence all that traveling between provinces which contributed to the upsurge in Thailands Cvirus statistics was allowed to go on.

[Hayduke]

On 8/16/2021 at 1:02 PM, webfact said:

Local airlines in Thailand say that without government support, 2021 will be a write-off

 

Might help if the Generals, government officials, miscellaneous Hi-Sos and other assorted ‘connected people’ would actually pay for their tickets.

 

 

[MrJ2U]

3 hours ago, SomchaiCNX said:

Your are partly right at least the last sentence. Now who managed it, who drained the money? Not their staff. Doing nothing, yes you may not have noticed but nobody is flying. Do not forget the CAAT, another incompetent department. The AOT, look at all the members of the board, most these departments are filled with people from the armed forces. The reason they continued with Boeing is that most of the pilots on Boeing are ex military and those on Airbus are not. Those who made cut and stayed are mostly connected, not difficult to understand.

All connected.

 

Cush job.

 

There still 14,000 people on the pay roll.

Doing nothing.