Flying Thai Airways Out Of Turbulence

[webfact]

EXCLUSIVE INTERVIEW

Flying out of turbulence

The man at the helm of troubled THAI tells Suthichai Yoon how he can turn the airline around

BANGKOK: -- If given a choice, Piyasvasti Amranand might prefer life in the cockpit rather than as president of Thai Airways International, and the great responsibility of navigating the national flag carrier out of financial storms, internal politics, scandals and shrinking public confidence.

But on a short flight from Bangkok to Chiang Mai on Friday, he was upbeat and optimistic while giving an interview to The Nation about all plans for the airline's future. Here are excerpts from the interview, the first in a two-part series:

Q: How can you convince the board, the staff and the airline's customers that THAI can come back to be Number One again?

A: We have got many things started and the public will keep seeing implementation and changes. The changes range from the food to on-board entertainment to financial reforms. A Bt5-billion investment plan has been approved and the board on Monday will consider a project to purchase a new fleet of aircraft. We are in the process of kick-starting our 15-year plan.

We want to become a five-star airline, not four star as is currently the case. Sometimes we have lapsed into trying to compete with low-cost airlines but it's time to go back up where we belong.

Q: What improvement will the public see?

A: We are promoting kiosk and Internet check-ins, which are very convenient but most people remain unaware of. This really saves time and ensures we don't need more manpower in this regard. People tend to think THAI is a huge labour-intensive company but we only have 28,000 employees or a little more than 30,000 if you count outsourced contracts. This may sound a high number to you but THAI includes every activity under one umbrella, like airline kitchens and so on.

Q: There have been complaints about "upgrading" privileges.

A: We have rules and everyone knows them. Problems occurred because the rules were not respected. So we have adjusted them to make things more clear-cut and realistic. I have been told my name has been cited as well, so I told them let's put every request on the record. It's undeniable that there have been requests from senior people or monks so the rules should be simple - that leniency must be given to people who deserve it, not to people who don't. And there must not be discrimination affecting our customers.

Q: What about the board?

A: Initially, board members got 15 first-class tickets each per year for overseas flights and another 15 tickets for domestic flights. That number has been brought down to 7 tickets for just about everyone, and 15 tickets for MD, VP and EVP, will be subject to further review and probably decrease further.

Executives are being subjected to downgrading from first class to business class unless there are really seats available for upgrading to first class. These measures combined with other factors have resulted in better financial figures. They affect only highest-ranking executives, not junior employees, who in fact need better fringe benefits.

-- The Nation 2010-02-08

[newsfooter][/newsfooter]

[basjke]

It is hard to believe that an airline who's majority of employees are working at a lower salary then any other airline over the world can not be profitable.Even if you see that their ticket are higher priced then most of the other airlines.

Clear that someone has deep pockets.

Edited February 8, 2010 by basjke

[Donnyboy]

It is hard to believe that an airline who's majority of employees are working at a lower salary then any other airline over the world can not be profitable.Even if you see that their ticket are higher priced then most of the other airlines.

Clear that someone has deep pockets.

someone? i would think there would be more than one

[hmficc]

I fly them often. The Bkk- Lax flight saves hours in going to the USA. If the web site is broken on the weekind one must wait until monday for it to be fixed. Sad but true.

[just_another_guy]

I am sure Mr. Piyasvasti Amranand will make some necessary changes to save the airline money. What I find unsettling is not one word is said about insuring proper maintenance for the actual aeroplane.

Sure it is nice to have new seats and the latest movies to view. But the number one issue (IMO) that Piyasvasti Amranand didn't mention was safety. NOT ONE WORD !

To me departing and arriving in one piece and not buried in some smoking hole because of the lack of proper maintenance trumps new paint and plush carpet all day long.

Of course this was only part one of the interview so we will have to wait for part two.

Lets hope Mr. Piyasvasti Amranand just forget to mention proper maintenance of these wonderful flying machines.

[Fatfrank]

He should look into his mileage program, 35,000 miles needed to fly to Hong Kong whereas CX is only 20,000, doesn't make sense. CX gets all my business.

[scorecard]

It is hard to believe that an airline who's majority of employees are working at a lower salary then any other airline over the world can not be profitable.Even if you see that their ticket are higher priced then most of the other airlines.

Clear that someone has deep pockets.

That's not quite true.

1. Pilots and cabin crew are paid at the same level as airlines like Singapore and Cathay. Why?, This happened maybe 10 years back when the management agreed that it was not nice if the pilots / cabin crew met their counterparts from the other airlines and they would lose face because the other airlenes would know they didn't get the same salaries, therefore theor salaries were adjusted to match the high profile regional airlines.

2. Thai pays the personal income tax tax on all employees salaries. In other words, if the gross salary is say 100,000Baht a month then of course personal income tax should be deducted and the lesser amount then goes to the employee.

But Thai adds a build on top of the 100,000 to cover the tax so that the employee actually gets the 100,000Baht in their hand.

Edited February 8, 2010 by scorecard

[scorecard]

He should look into his mileage program, 35,000 miles needed to fly to Hong Kong whereas CX is only 20,000, doesn't make sense. CX gets all my business.

Also, get some staff in the ROP department who are capable of giving clear answers to members questions.

I recently asked for a list of dates when award tickets were not availabe.

No reply to several e-mails then eventually a reply telling me to call the ROP telephone number.

I called and was told by the ROP supervisor that they didn't reply because that question needs to be answered by another department.

So I asked the obvious: "Why didn't you forward my question to the other department?"

Answer: "We don't have a procedure to do that."

Later in the same discussion the ROP supervisor guy revelaed that Thai have a NO BLACK OUT days policy - in other words award tickets can be issued for any day of the year and an on flight.

So I asked the obvious question: Why didn't you or your staff just tell me in answer to my first e-mail?"

Answer: "We are not allowed to do that because it's a policy matter of another department."

Total customer care - not even in their thinking.

Can you imagine this sort of ridiculous picture if you contacted The Sinagpore Airlines or the Cathay frequent flyer office?

[basjke]

It is hard to believe that an airline who's majority of employees are working at a lower salary then any other airline over the world can not be profitable.Even if you see that their ticket are higher priced then most of the other airlines.

Clear that someone has deep pockets.

That's not quite true.

1. Pilots and cabin crew are paid at the same level as airlines like Singapore and Cathay. Why?, This happened maybe 10 years back when the management agreed that it was not nice if the pilots / cabin crew met their counterparts from the other airlines and they would lose face because the other airlenes would know they didn't get the same salaries, therefore theor salaries were adjusted to match the high profile regional airlines.

2. Thai pays the personal income tax tax on all employees salaries. In other words, if the gross salary is say 100,000Baht a month then of course personal income tax should be deducted and the lesser amount then goes to the employee.

But Thai adds a build on top of the 100,000 to cover the tax so that the employee actually gets the 100,000Baht in their hand.

Good try but how many pilots are calculated in the 30.000 person strong workforce?Uhmm,200 at the most.Add another 2000 crew members than we have left about 27.800 employees which work at a fraction of the salary from the other airlines.

Edited February 8, 2010 by basjke

[hmficc]

He should look into his mileage program, 35,000 miles needed to fly to Hong Kong whereas CX is only 20,000, doesn't make sense. CX gets all my business.

Also, get some staff in the ROP department who are capable of giving clear answers to members questions.

I recently asked for a list of dates when award tickets were not availabe.

No reply to several e-mails then eventually a reply telling me to call the ROP telephone number.

I called and was told by the ROP supervisor that they didn't reply because that question needs to be answered by another department.

So I asked the obvious: "Why didn't you forward my question to the other department?"

Answer: "We don't have a procedure to do that."

Later in the same discussion the ROP supervisor guy revelaed that Thai have a NO BLACK OUT days policy - in other words award tickets can be issued for any day of the year and an on flight.

So I asked the obvious question: Why didn't you or your staff just tell me in answer to my first e-mail?"

Answer: "We are not allowed to do that because it's a policy matter of another department."

Total customer care - not even in their thinking.

Can you imagine this sort of ridiculous picture if you contacted The Sinagpore Airlines or the Cathay frequent flyer office?

When Singsore started it was with the mandate to make it on their own or fail. No gov't handouts. So whats wrong with GM and Thai? face too big to fail.

[1983wez]

I really do find it so hard to believe that THAI AIR are in serious financial trouble, with the airfares they charge on most occasions being higher than other “direct” flights. And availability often seems limited, which indicates to me that they are selling seats on their flights quite comfortably.

I have only flown with them twice. Once was from Auckland to London with a month stopover in Thailand. The ticket was £545 as it was just after the red shirts had shut down Bangkok airport so I was told a promotion price to get people back to Thailand.

The second time was October 2009 where I got a return from London for £560. Every other time I have looked to use THAI the prices have been so much higher. On occasions that I did want to fly direct with them, they did not have the seats available. This makes me believe that many people still choose to use them, even if their airfare is higher than other airlines at certain times.

The two times I did fly with them I was certainly happy with the service that the staff provided on board. I was well looked after and the food was very good. The downside being however, that they use the aging Boeing 747 with older seats and no in-flight entertainment, which I think should be a must in the 21st century for a 12 hour flight.

My girlfriend is Thai and she always insists that she fly direct and with THAI when visiting me in the UK. I have tried to tell her that if she must come direct there are other airlines that offer better value for money. Eva Air in my opinion are excellent if you do have to take a direct flight from Bangkok to the UK. Service from the staff is top notch, more legroom it seemed to me when I have flown with them in economy and they have good in-flight entertainment. Have also told my Girlfriend they have Thai speaking staff. I don’t know if it is her way of being patriotic in some way, but she still will only fly with THAI. I wonder how many other Thai nationals feel the same way?

I am a British national and the thought of flying with British Airways would never cross my mind. Terrible service with the most rude, unhelpful staff I have ever encountered.

THAI are certainly not a bad airline but there are 2 or 3 direct carriers that I would choose before using Thai, purely due to the aging aircraft with no entertainment. It will be interesting to see how Thai implement their changes to become “profitable” without cutting out levels of service, or adding extra charge to the price of a ticket, which at most times I have looked to book, are more expensive than the competition already.

[bangon04]

Also, get some staff in the ROP department who are capable of giving clear answers to members questions.

I recently asked for a list of dates when award tickets were not availabe.

No reply to several e-mails then eventually a reply telling me to call the ROP telephone number.

I called and was told by the ROP supervisor that they didn't reply because that question needs to be answered by another department.

So I asked the obvious: "Why didn't you forward my question to the other department?"

Answer: "We don't have a procedure to do that."

Later in the same discussion the ROP supervisor guy revelaed that Thai have a NO BLACK OUT days policy - in other words award tickets can be issued for any day of the year and an on flight.

So I asked the obvious question: Why didn't you or your staff just tell me in answer to my first e-mail?"

Answer: "We are not allowed to do that because it's a policy matter of another department."

Total customer care - not even in their thinking.

Can you imagine this sort of ridiculous picture if you contacted The Sinagpore Airlines or the Cathay frequent flyer office?

You actually received an E-mail from ROP??????

[jfchandler]

But on a short flight from Bangkok to Chiang Mai on Friday, he was upbeat and optimistic while giving an interview to The Nation about all plans for the airline's future. Here are excerpts from the interview, the first in a two-part series:

Did the THAI board chairman manage to make it onto one of their BKK-Chiang Mai flights lately where one of the airplane's engines DIDN'T catch fire and force the plane to turn back???

[webfact]

UPDATE: Part two of the interview

INTERVIEW

THAI's seat problems must be solved within two years

By The Nation

Piyasvasti Amranand, president of Thai Airways International, has promised tangible changes for the better at the troubled national flag carrier. Here's excerpts from an interview last Friday with Suthichai Yoon, the final of a two-part series:

How can THAI revive the old slogan of "Best service at all levels"?

That will depend mainly on intensive evaluation and follow-up, as well as rewarding those who deserve it and getting tough with those who don't. I think we Thais have an advantage when it comes to service, so it's all about getting back to those basics.

Where is THAI now in the world (airline) ranking?

We have fallen to 28th place, which is obviously not good. Most complaints are about seats. Food is OK but should be better. Our business class has taken a hit, as many airlines offer seats that can recline up to 180 degrees. In-flight entertainment is said to be inadequate.

Our check-in service as well as bookings are fairly good, but in-flight service requires more consistency.

What do you think requires urgent action?

We need to promote convenient booking and correct the pricing structures, which have been unclear due to customers' varying ways of purchase. Food will have to be improved.

Ticket strategy is important as we have to find the right balance. For example, when oil prices rise, we must not move too harshly and quickly and scare away passengers, and we must not move too softly and slowly and suffer big losses. With a clear ticket price strategy and solving the problem of price discrepancies, I think it will help our business a lot.

Any plan for economy class?

Our economy class is not that bad, although there may be need for private screens for overseas routes. We are looking into that. And again, while some dishes are nice, others like sandwiches can be improved.

How much time do you give yourself?

Many things that I have talked about must make significant progress after a year, and within two years progress must be clear-cut.

Seat problems must be solved within two years, and within three years our old fleet must be reinforced with new aircraft, three of which should arrive this year and six more between 2012-2013.

There is no Boeing 787 in our five-year plan because others have ordered them up.

Twelve existing Boeing 747 planes have undergone renovations, so have eight 777 aircraft.

How long will it take to overtake Singapore?

They have a lot of business customers whereas we thrive on tourists. I don't think we need private bedrooms yet.

Our first class is not doing that good, business-wise. It requires more space and (comment unclear). Our star performer is business class and economy class. I'm not saying we don't need first class, though. We need it and it must be good. I'm saying that we must make sure our business and economy classes are highly competitive.

Watch the full interview on Channel 9's Cheepachorn Lok programme on February 23 at 11pm.

-- The Nation 2010-02-09

[newsfooter][/newsfooter]

[Umassman]

To all,

As an airline executive this is truly a joke. Thai will never make real money as they can not manage their costs and the Thai hangers on. All good airlines are run by experienced professionals not matter what country they are from. How many expats at Thai airways? None - and they will not have it due to there egos. So let them lose billions and it does not matter as the government will not let them fail........................

Later

I am sure Mr. Piyasvasti Amranand will make some necessary changes to save the airline money. What I find unsettling is not one word is said about insuring proper maintenance for the actual aeroplane.

Sure it is nice to have new seats and the latest movies to view. But the number one issue (IMO) that Piyasvasti Amranand didn't mention was safety. NOT ONE WORD !

To me departing and arriving in one piece and not buried in some smoking hole because of the lack of proper maintenance trumps new paint and plush carpet all day long.

Of course this was only part one of the interview so we will have to wait for part two.

Lets hope Mr. Piyasvasti Amranand just forget to mention proper maintenance of these wonderful flying machines.

[jfchandler]

UPDATE: Part two of the interview

Our business class has taken a hit, as many airlines offer seats that can recline up to 180 degrees.

OR....

Our star performer is business class and economy class.

And then there's...

Our economy class is not that bad, although there may be need for private screens for overseas routes.

There MAY be the need for individual video screens in economy on Trans-Pacific flights??? Gee, do ya think?????

[rainman]

Was the interview done while flying on an Air Asia budget flight?

[astral]

The changes range from the food to on-board entertainment to financial reforms

To me that statement says a great deal about how muddled his priorities are......................

If THAI cannot offer a more financially competitive service, then the rest does not really matter.

[mirthseeker]

I flew Thai Melb - Bkk a few years ago. The staff sure looked pretty!

But when we hit turbulance over Indonesia, the seatbelt lights came on, and the announcement was made to return to seats and do up seatbelts, all the staff disappeared! There were still people standing in the aisles, waiting to go to the toilet etc. And nobody said anything!

Then on landing, as soon as the engines died, before the seatbelt lights were switched off, everyone was up, getting down luggage!

Until someone can convince me that this no longer occurs, they've lost my business!