Thai Airways Makes Huge Loss

[loong]

Thai Airways Makes Huge Loss

BANGKOK: -- Flag carrier Thai Airways posted a huge loss of 21.3 billion baht (592 million dollars) in 2008 because of high fuel prices and protests that briefly shuttered Bangkok's airports, the company said.

The airline made a profit of 4.4 billion baht in 2007, and last year's plunge was the company's first annual loss in 43 years.

"For the fiscal year 2008 Thai Airways International continues to encounter crises such as the continuing sharp rise of jet fuel price, the global economic slowdown as well as the political unrest in the country," the airline said.

In the statement released late Friday, Thai Airways also blamed foreign exchange losses due to the weakening of the Thai baht.

The national carrier reported a 1.6 percent year-on-year increase in its total revenue to 200.1 billion baht, but its operating expenses were up 10.8 percent to 206.8 billion baht.

The airline also reported foreign exchange losses of 4.5 billion baht.

Thai Airways is currently in talks with the government over a rescue package to help revive the struggling carrier's finances.

Finance Minister Korn Chatikavanij has insisted the airline must submit a detailed recovery plan before it receives taxpayer funds.

Thai Airways officials have previously said that the company lost about 20 billion baht when protesters trying to topple the last government seized and shut down Bangkok's two airports for a week in late November to early December.

The occupation stranded around 350,000 passengers in Thailand and battered the kingdom's vital tourism industry.

In January, Thai Airways said it would ask for a delay in the delivery of six A330 aircraft from European aircraft manufacturer Airbus due to a shortage of cash.

-- AFP 2009-02-28

[loong]

I'm surprised that they claim a 4.5 billion loss because of the weakening Baht. Yes, Baht has weakened against US$ , but the Baht has strengthened dramatically against so many other currencies in 2008.

[Maverell]

I and many others, stopped using Thai airways when they ruined their frequent flyer program. I will never fly with them again unless they are the cheapest on the market.

[Brigante7]

The missus is flying with them to Thailand in June, she chose them over BA and Emirates because she'll be travelling with a 21 month old toddler and will be 5 months pregnant so she thinks, and I agree with her, if the trolley dollies are thai then she might get more help, we'll see.

[ozfarang81]

Would you fly 'em?

Yes I would. So do millions of others.

[dbrenn]

Would you fly 'em? Is stray dog urine a suitable replacement for jet fuel?

The missus is flying with them to Thailand in June, she chose them over BA and Emirates because she'll be travelling with a 21 month old toddler and will be 5 months pregnant so she thinks, and I agree with her, if the trolley dollies are thai then she might get more help, we'll see.

Thai aren't all that bad - some of the planes are getting on a bit, but overall the experience for me has usually been satisfactory or better. There was one exception on a flight from Singapore to Bangkok when the plane counld't retract its undercarriage and had to return to Singapore airport shortly after taking off - twice! They did get me onto a later Finnair flight with no hassles though.

Avoid BA - the service is absolute cr*p and they have a habit of losing baggage. Ever since I began flying, my bags have been lost twice, both with BA and the most recent was last year, when I mistakenly gave them another chance. Even their own staff at Heathrow's notorious Terminal 5 told me how useless BA was while I was searching in vain for my bags, which turned up two days later. Their customer service is insulting, with repulsively inane pseudo-sincere gestures like "we are sorry you feel that way". Yeah right - try being sorry for making me feel this way with your awful service.

They don't give a toss, and I will never fly with them again even though I am British. Thai is streets ahead.

[Digitalman]

I like their service to the States, but I have noticed a decline somewhat in the last two years... Now I often find them to be pretty expensive compared to other airlines. I can't stand AirAsia, but I haven't seen Thai close to them in price for some time on the domestic end.

Their frequent flyer program isn't good either.

[dbrenn]

I like their service to the States, but I have noticed a decline somewhat in the last two years... Now I often find them to be pretty expensive compared to other airlines. I can't stand AirAsia, but I haven't seen Thai close to them in price for some time on the domestic end.

Their frequent flyer program isn't good either.

Depends what you are comparing BA to when flying to the States. I once flew United from LA to San Francisco, and my one United experience, never to be repeated, was so much more than enough I could write a book about it

BA staff are indifferent, but United staff are deliberately rude. This pretty much sums them up - http://www.untied.com/ - thought it was a joke at first, until I flew with them. Even the budget Aeroflot flight that I once made as an impoverished backpacker - London to Bangkok (via Moscow, Karachi, Tashkent, Delhi and finally Bangkok) in 1988 was a more pleasant experience.

Edited February 28, 2009 by dbrenn

[Scott]

Times are tough when the money trough in Thailand dries up. What will those people suck from now, I wonder?

[redscouse]

I used to fly with them on business, a 9 hour flight to sydney on a plane without seat back tvs, also on returning from singapore regularly the plane would park away from the terminal and we get bussed to the terminal, I can get that from air asia for half the price. little things like this and higher prices all add up in the end to dissatisfaction.

I think they got a little above themselves

[Digitalman]

I like their service to the States, but I have noticed a decline somewhat in the last two years... Now I often find them to be pretty expensive compared to other airlines. I can't stand AirAsia, but I haven't seen Thai close to them in price for some time on the domestic end.

Their frequent flyer program isn't good either.

Depends what you are comparing BA to when flying to the States. I once flew United from LA to San Francisco, and my one United experience, never to be repeated, was so much more than enough I could write a book about it

BA staff are indifferent, but United staff are deliberately rude. This pretty much sums them up - http://www.untied.com/ - thought it was a joke at first, until I flew with them. Even the budget Aeroflot flight that I once made as an impoverished backpacker - London to Bangkok (via Moscow, Karachi, Tashkent, Delhi and finally Bangkok) in 1988 was a more pleasant experience.

I can't stand United, I flew a United operated ANA flight from NRT to LAX and the cabin service was the most horrible I have ever experienced on an International flight, felt like an American domestic flight. Rude employees, uncomfortable seats, horrible entertainment... YUCK! Bunch of old, unattractive, rude American ladies... I love my wife but the scenery is much better on the Asian airliners.

Korean Air used to be great for me, but they have raised prices and cut back on service... Never-mind the time they put me, having the highest available sky team frequent flyer designation and having flown business to Korea, behind schedule 24 hours without offering me a hotel, and rerouting me to Chicago on Economy (partly my choice.) I never flew Korean Again after that..

I recently flew EVA airlines and was really pleased..

[entergraph]

"briefly shuttered", "losses due to the weakening of the Thai baht"? Did they read the news?

[Old Man River]

I'm surprised that they claim a 4.5 billion loss because of the weakening Baht. Yes, Baht has weakened against US$ , but the Baht has strengthened dramatically against so many other currencies in 2008.

In 2008 fuel prices skyrocketed and fuel is USD based. Hence, this part of their loss. By no means do I think this is a well run airline, just that their claim of the exchange loss is valid.

[473geo]

We may well see many companies who have may been carrying 'hidden' liabilities.....suddenly emptying all the skeletons out of the cupboard now there is the global economic down turn excuse. Of course this will not be the case with Thai.

[Octavian]

Have utilized United and Northwest on the BKK - SFO flights and decided not to fly them again. Have made several trips on EVA BKK -SFO and found that to be a pleasant experience. Service is great and the food is way above average. Thai Airlines is overpriced.

[Old Man River]

I can't stand United, I flew a United operated ANA flight from NRT to LAX and the cabin service was the most horrible I have ever experienced on an International flight, felt like an American domestic flight. Rude employees, uncomfortable seats, horrible entertainment... YUCK!

Digitalman, I was thinking of flying business class on United to the US later this year (NRT to LAX), but after reading Skytrax I found all comments to mirror what you said. I think the only thing you forgot to say was that the food also sucks. EVA or Cathay do seem to be better choices.

[maxman71]

I like their service to the States, but I have noticed a decline somewhat in the last two years... Now I often find them to be pretty expensive compared to other airlines. I can't stand AirAsia, but I haven't seen Thai close to them in price for some time on the domestic end.

Their frequent flyer program isn't good either.

Depends what you are comparing BA to when flying to the States. I once flew United from LA to San Francisco, and my one United experience, never to be repeated, was so much more than enough I could write a book about it

BA staff are indifferent, but United staff are deliberately rude. This pretty much sums them up - http://www.untied.com/ - thought it was a joke at first, until I flew with them. Even the budget Aeroflot flight that I once made as an impoverished backpacker - London to Bangkok (via Moscow, Karachi, Tashkent, Delhi and finally Bangkok) in 1988 was a more pleasant experience.

I can't stand United, I flew a United operated ANA flight from NRT to LAX and the cabin service was the most horrible I have ever experienced on an International flight, felt like an American domestic flight. Rude employees, uncomfortable seats, horrible entertainment... YUCK! Bunch of old, unattractive, rude American ladies... I love my wife but the scenery is much better on the Asian airliners.

Korean Air used to be great for me, but they have raised prices and cut back on service... Never-mind the time they put me, having the highest available sky team frequent flyer designation and having flown business to Korea, behind schedule 24 hours without offering me a hotel, and rerouting me to Chicago on Economy (partly my choice.) I never flew Korean Again after that..

I recently flew EVA airlines and was really pleased..

I have to agree with about US airlines in general. If you think their int'l service sucks, try flying them on domestic US routes; pathetic. But, I have had good experience on United int'l EXCEPT when operated by ANA; ANA is the WORST in Asia. I am still pleased with Thai though; easy to book online, and when I have to call their offices directly, they answer quickly and are competent. Their rates aren't the lowest, but not the highest either. I don't use their frequent flyer program and book the bonus miles to United instead. I fly about 500K miles a year. My list of top airlines are: Thai, Cathay Pacific and Singapore. I have found Singapore Air to be rather snooty and cumbersome to deal with. EVA is also a good airline.

[yosithezet]

I and many others, stopped using Thai airways when they ruined their frequent flyer program. I will never fly with them again unless they are the cheapest on the market.

What did they do that ruined the program?

[Jing-jo]

Would you fly 'em? Is stray dog urine a suitable replacement for jet fuel?

The missus is flying with them to Thailand in June, she chose them over BA and Emirates because she'll be travelling with a 21 month old toddler and will be 5 months pregnant so she thinks, and I agree with her, if the trolley dollies are thai then she might get more help, we'll see.

Thai aren't all that bad - some of the planes are getting on a bit, but overall the experience for me has usually been satisfactory or better. There was one exception on a flight from Singapore to Bangkok when the plane counld't retract its undercarriage and had to return to Singapore airport shortly after taking off - twice! They did get me onto a later Finnair flight with no hassles though.

Avoid BA - the service is absolute cr*p and they have a habit of losing baggage. Ever since I began flying, my bags have been lost twice, both with BA and the most recent was last year, when I mistakenly gave them another chance. Even their own staff at Heathrow's notorious Terminal 5 told me how useless BA was while I was searching in vain for my bags, which turned up two days later. Their customer service is insulting, with repulsively inane pseudo-sincere gestures like "we are sorry you feel that way". Yeah right - try being sorry for making me feel this way with your awful service.

They don't give a toss, and I will never fly with them again even though I am British. Thai is streets ahead.

I worked at Heathrow for a year delivering the food and we saw twenty or thirty bags every day just lying on the kerbs and in the middle of the access roads and they don't stop to pick them up usually, some of the indian drivers for the food company used to deliberately run over the bags smashing it and its contents.

the reason why this is happening is that B.A. staff don't use the side flaps and they drive to fast spilling the luggage out on every corner.I would never ever fly with them

[Jimbob1]

I booked friday to fly in 3 weeks to BKK from Sydney and they were a couple of dollars more expensive than BA ... when I say a couple I mean $25 .... I was absolutly wrapped ... I would prefer Thai to BA at any cost ...

BA are a lousy service and cramped seats, stodgy food, ......

Jim.

Sorry forgot to add ..... and the Hosties are all TOOT YAI !

Edited February 28, 2009 by Jimbob1

[Springman]

I used to fly with them on business, a 9 hour flight to sydney on a plane without seat back tvs, also on returning from singapore regularly the plane would park away from the terminal and we get bussed to the terminal, I can get that from air asia for half the price. little things like this and higher prices all add up in the end to dissatisfaction.

I think they got a little above themselves

[Springman]

I used to fly with them on business, a 9 hour flight to sydney on a plane without seat back tvs, also on returning from singapore regularly the plane would park away from the terminal and we get bussed to the terminal, I can get that from air asia for half the price. little things like this and higher prices all add up in the end to dissatisfaction.

I think they got a little above themselves

[musicman2004uk]

Would you fly 'em? Is stray dog urine a suitable replacement for jet fuel?

The missus is flying with them to Thailand in June, she chose them over BA and Emirates because she'll be travelling with a 21 month old toddler and will be 5 months pregnant so she thinks, and I agree with her, if the trolley dollies are thai then she might get more help, we'll see.

Thai aren't all that bad - some of the planes are getting on a bit, but overall the experience for me has usually been satisfactory or better. There was one exception on a flight from Singapore to Bangkok when the plane counld't retract its undercarriage and had to return to Singapore airport shortly after taking off - twice! They did get me onto a later Finnair flight with no hassles though.

Avoid BA - the service is absolute cr*p and they have a habit of losing baggage. Ever since I began flying, my bags have been lost twice, both with BA and the most recent was last year, when I mistakenly gave them another chance. Even their own staff at Heathrow's notorious Terminal 5 told me how useless BA was while I was searching in vain for my bags, which turned up two days later. Their customer service is insulting, with repulsively inane pseudo-sincere gestures like "we are sorry you feel that way". Yeah right - try being sorry for making me feel this way with your awful service.

They don't give a toss, and I will never fly with them again even though I am British. Thai is streets ahead.

You are right there mate BA are CR*P. I have been with Thai a couple of times but I find I get a really good service on most of the Arab airlines such as Emirates, Gulf Air, Qatar, Etihad. I travel with my wife & twin babies of 9 months so I'm looking for the best service. With most other airlines they don't mind if your bags are a kilo or 2 over the top unlike BA.

[Springman]

I must have travelled on the same Aircraft as you.Thought i would give myself a treat and fly Thai Airways. Never again it was exspensive rubish.

[Digitalman]

Agreed.. I still love Thai international to the States, well before they dropped New York and tried to add a stop over between LAX and BKK... I like Cathay as well.. I have heard great things about Singapore but I just haven't flown them yet..

[farang2002]

I'm surprised that they claim a 4.5 billion loss because of the weakening Baht. Yes, Baht has weakened against US$ , but the Baht has strengthened dramatically against so many other currencies in 2008.

In 2001 the baht to dollar was at 45 baht. Does that mean they took it in the shorts then too? There was a period the baht was at 50 to the dollar. Now it is at 36, still 20% better than 2001. I think Thai Air should be looking for some new management.

[pauleddy]

Thai has done nothing to help itself.

I am a freq flyer (B Class) to Madrid. The 747s are old buckets without flatbed seats--on that route. The price is 140,000b round.

last year i discovered Qatar. A 2 hour stop in Doha isn't so bad.

The food, wine and staff are great and the plane was 3 mths old. Flat seats, and even the Econ class looked nice. 79,000b round.

2 concluding points---

Thai has been a lazy gravy train for its senior staff and managers for years. Wouldn't surprise me if the "loss" was a bit creative. Someone has creamed smthg.

Thai "Silk" crap etc is part of the general delusion among Thais that Thailand, its people and its food and all are wonderful and that we shd all be 1000% more gratefu lfor Thailand even existing and allowing us in. We all know that much of this is a huge confidence trick in a presentation based society in which nothing is really as it seems. I welcome the recession if it will help this place to wake up, improve its procedures and get competitive.

Eddy

[farang2002]

Would you fly 'em?

Yes I would. So do millions of others.

If one checks the online airlines rating sites, Thai Air consistently rates in the top ten of international carriers.

[thaibkk]

they are always much more expensive, even with their pseudo promotional prices

nobody likes to pay too much

service ? 2 hot mails, some water and sitting 12 hours on ur ass

[Zorne]

company's first annual loss in 43 years.

Thai Airways is currently in talks with the government over a rescue package

because of high fuel prices and protests that briefly shuttered Bangkok's airports

LOL. Sounds like a well run company .

What ever happened to the money earned during the first 43 years?

What ever happened to risk planning?