Thai Airways President Fired

[george]

President Apinan sidelined

Transport official denies politics is behind decision

BANGKOK: -- The board of Thai Airways International (THAI) has demoted president Apinan Sumanaseni with immediate effect, a move that raises concern over resurgent political intervention in the national carrier.

Although maintaining the title of president, Apinan was immediately transferred to oversee non-management issues. The board yesterday also appointed executive vice president Norahat Phloiyai as co-president.

Transport permanent secretary Chaisawat Kittipornpai-boon, as chairman of THAI, said there had been many internal management problems since Apinan took up the post. A management reshuffle is also necessary, due to business uncertainties springing from skyrocketing jet-fuel prices and higher operating costs.

"The board is not satisfied with his performance," said Chaisawat, adding that Norahat's long service at THAI should relieve the problems. He insisted the decision was not politically motivated and added that Norahat's performance would be evaluated.

Democrat MP Juti Krai-rirk yesterday accused the government of intervening in THAI by appointing the new co-president.

"The new president attended pre-military school in the same year as the former leader of a major political party. Now, I want all parties to take a close look at THAI's aircraft purchases and the bid for THAI Kitchen's management contract. This may entail corruption," he told Parliament yesterday.

THAI labour-union chief Chamsri Sukchotrat said politicians were again intervening in the company and that this would bring many problems like it did six years ago, when the Thaksin Shinawatra government appointed several outsiders to the board.

"During the Thaksin government, corruption was rampant," she said.

"THAI lost Bt1 billion for a wrong order for onboard equipment filed by an outside director. Many other decisions made by the previous board were wrong, so we urged management to be careful of further moves," she added.

In the statement, the union also urged management to reduce privileges given to influential people, mostly politicians and their relatives and fellow colleagues. The union plans to submit a petition to Prime Minister Samak Sundaravej, as well as the House Speaker, the Senate and several ministries.

Apinan said earlier that THAI's revenue would fall short of this year's Bt210-billion target. To cope with higher fuel prices, the company has implemented a reduction of flight frequencies, rerouted flights, particularly for its US operations, and installed other cost-cutting measures. As a result, service to New York will be suspended next Tuesday.

The demotion of the THAI president will not affect the company's share price, because the price has already been low, due to rising oil prices, said an Asia Plus Securities analyst.

-- The Nation 2008-06-26

[dekka007]

One <deleted> replacing another....

[Rinrada]

Maybe get the air miles back again.....

[dotcom]

A billion here & a billion there. Pretty soon you are talking real money.

[geriatrickid]

Apinan Sumanaseni was a graduate of the Thai Airforce Academy, so the military link isn't that important in respect to the comment about military classmates etc.

Considering the golden parachutes and inflated compensation packages alot of American and European airline execs have received, this isn't such a bad settlement. TG avoids having to pay a severance package and the replacement may actually do a better job.

TG does not make its executive compensation packages public (Hurrah for transparency) However, based upon industry comments, compared to many western airlines, TG is in better shape and its execs are paid less.

If you don't want to be sick, stop reading now.

- United Airlines' board bestowed $39.7 million in compensation on CEO Glenn Tilton in 2006. (UAL's profit that year was $25million.)

-During American's 2007 annual stockholder meeting, CEO Arpey said that the $160 million in stock awards given to top executives and managers was a motivational tool that helped keep the carrier out of bankruptcy. Hahaha Yea right Arpey, made approx. $6 million in April 2007 when he sold his stock awards, in addition to his $657,00. salary. - NWA in 2007 gave its CEO Douglas M. Steenland, stock and options worth more than $20 million

- Douglas Parker over at US AIrways was given cash bonuses and stock grants worth about $4.8 million last year as of 2007 filings.

- Air Canada which just announced layoffs of customer service staff because of hard times was able to find $43million to pay its holding Company CEO Robert Milton, while the Air Canada chief exec Monte Brewer got $8million.

- British Airways recently reviewed base salaries of its top execs and from July 1, 2008, Willie Walsh's base salary will be £735,000 and Keith Williams' will be £440,000. with a possible annual bonus subject to a maximum limit of 100 per cent of salary, excluding other benefits.

- Lufthansa's CEO gets a base of 2.1million Euros.

- Richard Anderson of Delta only draws $200,000, but gets lots of stock options for a compensation filing of $3.3million

And now the choker, over at Southwest, the only US Airline to make money, the CEO draws a salary of $800,000 plus stock options for a compensation of $1.3million.

Keep the above in mind when discussing TG management.

.

[sriracha john]

Screeeeeeeeeeeeeeeeccccccccccch... it's time for yet another

TG chief's suspension overruled

Union pressure leads to board about-face

Thai Airways made an abrupt about-face last night and scrapped a decision made earlier yesterday to suspend president Apinan Sumanaseni. Protests by the THAI union and pilots forced THAI chairman Chaisawasd Kittipornpaiboon to announce late yesterday that no management change would be made at the national carrier.

Continued:

http://www.bangkokpost.com/270608_Business...n2008_biz32.php

[Scott]

Thailand--a place where a thousand indecisions are made each day!

[PeaceBlondie]

Wow, that was a fast U-turn. The CEO did not even have time to be in - what is that quaint term - an inactive position.

Can Mr. Samak be put into an inactive position?

[h90]

Wow, that was a fast U-turn. The CEO did not even have time to be in - what is that quaint term - an inactive position.

Can Mr. Samak be put into an inactive position?

He is pretty inactive.....

Can someone make him quiet, please

[britmaveric]

Had hopes the JFK -BKK route would be re-started.

[BEENTHEREDONETHAT]

Don't want anyone losing face you know. Friends in high and apparently low places can influence the boards decision. Perhaps the stock holders might want to consider a new board that is capable of replacing the required people (regardless of who they know).

[sriracha john]

Don't want anyone losing face you know. Friends in high and apparently low places can influence the boards decision. Perhaps the stock holders might want to consider a new board that is capable of replacing the required people (regardless of who they know).

Start with the guy who signed off on Chalerm to receive his bogus PhD...

http://www.thaivisa.com/forum/index.php?s=...t&p=2055801

[younghusband]

However, based upon industry comments, c[/color]ompared to many western airlines, TG is in better shape and its execs are paid less.

If you don't want to be sick, stop reading now.

Keep the above in mind when discussing TG management.

.

I'm not sure what part of the details of Western airline bosses pay we are meant to be sick about.The compensation details you quote look pretty reasonable to me and is peanuts compared to rewards in Wall Street and the City (of London).I personally feel sicker at Thai generals who amass small fortunes after careers on tiny salaries.To be precise not so much the corruption and pocket lining it implies but the thick face with which it is displayed for all to see.Even my soft spot for Surayud doesn't make me overlook his relative wealth is inexplicable - and he is far from being the most rapacious offender, quite modest in fact.Please don't mention rich wives or inherited assets or land appreciation.I've heard it all.

TG should be a fantastically profitable airline given this country's huge tourism industry and the excellent Thai service culture (like the Swiss).Actually I think TG although saddled with too many ex service and government Board members has done pretty well, and is now making good on underinvestment which made its intercontinental routes a bit shabby in comparison with the competition.It's still too much of a government vehicle however but there's no real incentive for the trogh feeders (yes them again) to change until forced to.Currently there's no real accountabilityIt would be unthinkable that TG would appoint a foreign CEO (like SG) or undertake a proper privatisation.However this is a fantastically competitive industry and TG may eventually have radical change forced on it with fuel cost and other pressures.Look at Alitalia.However the story will be the same old Thai one with unions calling the shots, ventriloquised by vested interests in the civil service and in TG's case the military.Those familiar with EGAT's story over the decades will know what I mean.

[sriracha john]

Thailand--a place where a thousand indecisions are made each day!

Quote of the day.....

[lordofdelusion]

Sack the whole lot as far as I am concerned. I will always maintain that my worst flying experience was on a Thai flight from BKK to LAX. Worst ground service and inflight (lack of) service ever. I never miss an opportunity to tell others and here is a thread I can rant again!!!! Sell the national airline to Singapore.

[PeaceBlondie]

And this gives me the chance to say that besides Eva, Thai Airways has consistently given me the best economy class service, never lost my luggage, and served me the best Thai food I ever ate. Profitably running an airline must be the most difficult job in the world. Note that the main airline making a profit and doing things right is Southwest, a pioneer in low-cost flights ("The next 333 passengers to Dallas will now cram themselves into the tightest possible spaces and await their bag of peanuts.... ).

[jayjayjayjay]

Thailand--a place where a thousand indecisions are made each day!

[Flatouthruthefog]

Wow, that was a fast U-turn. The CEO did not even have time to be in - what is that quaint term - an inactive position.

Can Mr. Samak be put into an inactive position?

He is pretty inactive.....

Can someone make him quiet, please

For many years he has needed a darned good Samacking, him and his Sundryvegetables.

[steveromagnino]

I'm not sure what part of the details of Western airline bosses pay we are meant to be sick about.The compensation details you quote look pretty reasonable to me and is peanuts compared to rewards in Wall Street and the City (of London).

Actually I think TG although saddled with too many ex service and government Board members has done pretty well, and is now making good on underinvestment which made its intercontinental routes a bit shabby in comparison with the competition.

I agree with most of what you have said; I think the reality is that in most normal companies, you would not have CEOs earning that sort of cash in a company which is making a loss; USA salaries are completely out of touch with the concept of pay for performance as shown by Southwestern's salary vs. the rest. As for Wall St and the City, well I would not exactly hold up most hedge fund and bank performance packages as symbols of a healthy economy, given their collapses and poor leadership in many cases.

Although it is fair to say it isn't just USA companies that do this; however whenever you see this sort of situation (and you see it more in USA than elsewhere thanks to idiotic pay plus disclosure) it does kind of beg a few questions.

TG actually did have a good CEO a while back, the guy that introduce the routes to USA. He actually proposed it with a clear picture of what it would cost, then launched Thai's first quality budgeting and forecasting system, which showed the actual loss. So obviously he was fired straight away and replaced with someone else. I am wracking my brains as to his name, but do recall actually being very surprised what a nice, smart chap he was when I first got to talk to him....by comparison most of the rest in Thai Air have been either fairly average or worse.

There is some big money in choosing planes etc and the resultant payoffs; if there was any way to make money out of mainstream airlines you would already see a Shinwatra running Thai; instead easier for them to just put an idiot in charge so they could have free reign with AirAsia.

Yet another joyous example of what happens with complete manipulation of country assets.

[Rinrada]

Just got a divi from Thai Airways (owned some shares in the company for years )....80 Bt......just about enough for a Big Henekin .........will say nowt about the miles....

[lomatopo]

- United Airlines' board bestowed $39.7 million in compensation on CEO Glenn Tilton in 2006. (UAL's profit that year was $25million.)

Posting these compensation figures without any sort of background is pretty useless. It looks like you know what you're talking about but the plain truth is you don't.

Glenn Tilton made 1.12 million USD in total compensation for FY 2006, of which $ 610,000 was base salary. This is well below the median for the transportation sector. His total compensation for FY 2007 was $ 850,000. He did guide the carrier through and out of a complex bankruptcy. Any stock (UAUA) options granted are well submerged.

IMO Apinan Sumanaseni has done a decent job since being named as President Thai Airways International in April of 2006. He is a long time employee, starting as a pilot back in 1975 and has years of flight ops. experience.

The direct, non-stop routes to LAX and JFK, along with the required aircraft expenditures, were clearly a huge mistake. The resulting operational losses have been ~ 4 billion baht.

[sabaijai]

Didn't Thaksin encourage the purchase of the long-haul jets TG is now forced to sell, and didn't the profits go to his wife's family? I remember something about this ...