Thai Airways restructuring to divest services, focus on core business

BANGKOK: -- Thailand's national air carrier, Thai Airways International, will restructure not only its management systems, but will spin off other companies to better serve Suvarnabhumi international airport--and the next generation of international air travelers.

Transport Minister Pongsak Raktapongpaisal Monday instructed the national flag carrier to restructure its management systems, intending THAI itself to concentrate on the core business and establishing affiliate firms for repairs and maintenance, catering and air cargo services for the new international airport, set to be fully operable by mid-2006.

THAI is expected to reap significant profit from services it provides at Suvarnabhumi international airport, though the firm lost as much as Bt 4 billion during the third quarter of this year due to management practices which have since been brought into conformity with investor concerns.

Despite the current slump in airlines business worldwide, due to fuel prices and heavy competition, airline businesses will become highly lucrative under Thailand's new 'Open Sky' policies in dealings with other countries, Mr. Pongsak said.

One working group will be set up to coordinate with the THAI executive board and all levels of operating officials and another to lay out roadmaps for future competition with other world airlines, the transport minister said.

The restructured management is anticipated to help cut red tape, especially at operating level, he added.

THAI executives are committed to containing operating losses due to ticketing and pricing arrangements with air travelers and agents.

--TNA 2005-09-20

Another golden opportunity for the "right" people.

In what way are aircraft-maintenance, flight-catering & cargo-operations NOT core-activities for Thai Airways ?

Restructuring management at this time, when they already have intense competition & fuel-cost pressures to cope with, can only lead to managers taking their eye off the main-objective, of turning their failing-business round as quickly as possible.

The timing of this restructuring could hardly be worse.

Good Luck Thai International Airways