Thai Airline Woes

[marshbags]

AIRLINE WOES

THAI to lay off 400 staff after loss

By SUCHAT SRITAMA

THE NATION

Published on August 14, 2008

Thai Airways International (THAI) will launch an early-retirement programme to shed 400 staff in the second half of this year, following its biggest quarterly loss in 10 years of Bt9.2 billion.

This is the third early-retirement programme by the company in five years.

President Apinan Sumanaseni said the programme would cost about Bt700 million. The expense, in addition to other costs, would require THAI to cut its investment budget for the second half by Bt3 billion, he said.

"At the meeting yesterday, the board also approved plans to reduce direct flights to Los Angeles and other routes to cut losses," he said.

THAI attributed the losses to the higher price of jet fuel and the baht's appreciation against the US dollar. The airline's revenue is mainly denominated in foreign currencies.

THAI posted net profits of Bt2.2 billion in the first quarter while its 2007 profit of Bt1.8 billion was 795 per cent down from the 2006 figure of Bt8.99 billion.

Meanwhile, THAI shareholders have filed a lawsuit in the Criminal Court against the company's chairman and president, accusing them of actions that resulted in damages and losses to the airline and shareholders.

Two shareholders - Visut Sahachatmanop and Jindasri Sudsawas - delivered the suit document to other shareholders yesterday.

The Criminal Court had accepted the lawsuit on Monday.

The shareholders said THAI chairman Chaisawasd Kittipornpaiboon, along with president Apinan, had violated their powers by allegedly making profits from the company's aircraft procurement.

The shareholders made five allegations against the chairman and president, including presenting false facts to the board of directors to approve pre-delivery payment to Airbus.

They alleged that the payment, amounting to Bt4 billion, was made despite knowing the Cabinet had resolved that THAI not purchase the A330-300s but instead lease them.

THAI should have notified Airbus and discussed with them to find solutions to comply with the Cabinet's resolution, instead of deliberately making payment, they alleged.

The two have also been accused of allegedly misleading the board of directors to select Rolls-Royce engines for A330-300 aircraft by presenting false facts.

The result was that THAI had to pay an extra Bt200 million more than the normal price, the shareholders said. The cost of all engines totalled Bt20 billion.

The shareholders also make other claims about poor financial decisions.

Unquote

As the Thai way is to discourage business by increasing prices, we must expect a roll on effect via cutting more flights, domestic in particular, along with more job losses ect. ect. F.F.F.F.Fck

While oil is coming down prices are still increasing ???????

marshbags ened by the prospect.

[Pdaz]

Actually I love to hear about rising flight prices and cuts in flight service.. Hopefully this will mean Pattaya can return to being the quiet third World backwater it used to be... Less tourists/wannabee expats mean less greedy developers and property speculators. Less ''high end'' dreamers who want/need first world service and goods but can't afford to live in the South of France/manaco.. So try to change Thailand to suit them.. and less ''get rich quick/I'll start a bar/Farang food place types too.. Keep Thailand ''Thai Style'' if you need English fish and chips so bad.. b*gg*r off back to Blighty.. One or two places is surely enough. But now the amount of ''Irish pubs'' and ''Trad English cafes'' is getting out or hand... Not to mention German restaurants and the Estate Agent blight...

Edited August 14, 2008 by Pdaz

[pokerkid]

Actually I love to hear about rising flight prices and cuts in flight service.. Hopefully this will mean Pattaya can return to being the quiet third World backwater it used to be... Less tourists/wannabee expats mean less greedy developers and property speculators. Less ''high end'' dreamers who want/need first world service and goods but can't afford to live in the South of France/manaco.. So try to change Thailand to suit them.. and less ''get rich quick/I'll start a bar/Farang food place types too.. Keep Thailand ''Thai Style'' if you need English fish and chips so bad.. b*gg*r off back to Blighty.. One or two places is surely enough. But now the amount of ''Irish pubs'' and ''Trad English cafes'' is getting out or hand... Not to mention German restaurants and the Estate Agent blight...

I really wanted to live in MANACO but couldn't find it so now thailand is my home. maybe next year i try to find the french reviara

[grantbkk]

The economy and mismanagement has finally caught Thai Airways in the spotlight. I noticed that they are not reducing the number of paid members of the board just cutting service and the employees at the low end. Give the whole thing to Fernandez at Air Asia. He'll turn it around.

From Pdaz: Actually I love to hear about rising flight prices and cuts in flight service.. Hopefully this will mean Pattaya can return to being the quiet third World backwater it used to be... Less tourists/wannabee expats mean less greedy developers and property speculators. Less ''high end'' dreamers who want/need first world service and goods...

Maybe it was the English who said something about putting lipstick on a pig. Now Pattaya is a sewer with far less infrastructure required to keep it going. Besides the intonational reputation as a sex tourist destination it has the growing problem of becoming the destination of choice for criminals and organized crime. Someone should develop an affordable armed security service for the condo buyers. It is just a matter of time before there will be an increased demand for that service along with personal protection to shuttle the kids to school and get the wife back and forth from Foodland.

[Rimmer]

Actually I love to hear about rising flight prices and cuts in flight service.. Hopefully this will mean Pattaya can return to being the quiet third World backwater it used to be... Less tourists/wannabee expats mean less greedy developers and property speculators. Less ''high end'' dreamers who want/need first world service and goods but can't afford to live in the South of France/manaco.. So try to change Thailand to suit them.. and less ''get rich quick/I'll start a bar/Farang food place types too.. Keep Thailand ''Thai Style'' if you need English fish and chips so bad.. b*gg*r off back to Blighty.. One or two places is surely enough. But now the amount of ''Irish pubs'' and ''Trad English cafes'' is getting out or hand... Not to mention German restaurants and the Estate Agent blight...

I really wanted to live in MANACO but couldn't find it so now thailand is my home. maybe next year i try to find the french reviara

Isn't it the place where they have the Grind Prax races?

[britmaveric]

I like TG, but lets face it - they are a complete mismanaged mess. They won't be allowed to close doors, since its the national airline, but things need to change in a hurry.

[orchis]

Tg gives out too many freebies to staff and their families, the board, politicians, etc.

How can they be profitable.

[NotNew2You]

Been a typical mis-managed state owned corporation for years. Between the featherbedding (I've read up to 25% of employees are ghost workers and/or make-work positions for relatives of "influential" people) and bribery and interference in aircraft procurement and just about all other outside contracts, it's amazing they have been able to keep this contraption of a corporation flying for this long.

It's really sad, as Thai Airways was one of the pioneers in commercial aviation in Asia, and to see it flown into the ground is a sorry sight.

Edited August 14, 2008 by NotNew2You

[NotNew2You]

Keep Thailand ''Thai Style'' if you need English fish and chips so bad.. b*gg*r off back to Blighty.. One or two places is surely enough. But now the amount of ''Irish pubs'' and ''Trad English cafes'' is getting out or hand

Completely agree...hopefully, with the 30% (and hopefully more) drop in tourist numbers (especially concentrated among UK visitors), the growth in the plague of Irish and British pubs will come to and end. They may even drop in number as surely most of their trade must come from these sorry fellows who have to travel half-way around the world and still have to have their bangers and mash breakfasts

[TopDogger]

Keep Thailand ''Thai Style'' if you need English fish and chips so bad.. b*gg*r off back to Blighty.. One or two places is surely enough. But now the amount of ''Irish pubs'' and ''Trad English cafes'' is getting out or hand

Completely agree...hopefully, with the 30% (and hopefully more) drop in tourist numbers (especially concentrated among UK visitors), the growth in the plague of Irish and British pubs will come to and end. They may even drop in number as surely most of their trade must come from these sorry fellows who have to travel half-way around the world and still have to have their bangers and mash breakfasts

And where do you come from?

[midas]

Been a typical mis-managed state owned corporation for years. Between the featherbedding (I've read up to 25% of employees are ghost workers and/or make-work positions for relatives of "influential" people) and bribery and interference in aircraft procurement and just about all other outside contracts, it's amazing they have been able to keep this contraption of a corporation flying for this long.

It's really sad, as Thai Airways was one of the pioneers in commercial aviation in Asia, and to see it flown into the ground is a sorry sight.

It can be done - but it needs an awful lot of determination..............

Look at Aeroflot -it was once the last airline anyone would fly on

but today their business class is quite good actually