THAI Assured Of 'No Management Change'

[webfact]

THAI assured of 'no change'

By THE NATION

Newly-appointed Transport Minister ACM Sukampol Suwannathat vowed yesterday to press ahead with the Pheu Thai Party's transport policies and gave an assurance that he would not introduce a management change at Thai Airways International.

"The urgent agenda here is the electric-train construction as well as the expedition of a Bt1.6-billion budget for fixing roads after the floods," Sukampol said on his first day in office.

He insisted that the planned 10 electric-train lines with a flat ticket cost of Bt20 was a viable proposition.

Meanwhile, he asked for some time to review the tasks commissioned by the previous government before delegating work to his two deputies and making a priority list of things he had to do. He also promised to review the Bangkok Mass Transit Authority's plan to acquire 4,000 NGV-driven buses - a project that suffered from a series of revisions during the Abhisit government.

He will also consider whether free bus and train services should be continued, saying that the number of beneficiaries is small. The services, aimed at lowering the cost of living for the poor, are due to end in September.

With regard to the national carrier, Sukampol said he had no plan to appoint a new chief for Thai Airways International, quashing rumours that incumbent THAI president Piyasvasti Amranand could be forced to leave his job. However, a representative from the Royal Thai Air Force will be appointed to the board of directors.

IMPRESSIVE PERFORMANCE

Sukampol said he was not personally acquainted with Piyasvasti, but the chief's performance had been impressive, so the ministry would seek no change. He pointed out that Piyasvasti was not appointed to his post by a particular person. Rather, he was appointed through an open selection process.

Piyasvasti, a former energy minister, won the contest for the THAI presidency during the Abhisit government. There were rumours that he could be forced out following the government change.

Sukampol also showed support for THAI's pending business plans, to set up Thai Tiger Airways and Thai Wing. He said regulatory obstacles would be cleared if the plans benefitted the country. The Civil Aviation Department is reportedly reluctant to issue a license to Thai Tiger Airways, while former minister Sophon Saram has repeatedly expressed worries over the future of budget airline Nok Air.

"Whether the new low-cost airlines will cannibalise Nok Air depends on their business plans. Nok Air operates on a limited scale while the low-cost airlines will open up new markets. I will need to consider the business plans in detail, and if they are well substantiated, there is no reason to block them," Sukampol said.

THAI is planning a joint venture with Singapore's Tiger Airways to operate an ultra-low cost airline, to woo back domestic passengers from Thai AirAsia. Delays to the Thai Tiger Airways plan prompted THAI to create Thai Wing as an internal unit.

Thai Wing is expected to take off in June 2012, initially with seven aircraft for operations on nine routes.

THAI's executive vice president for strategy and business development Chokchai Panyayong said that the business plans were now ready for the new minister's approval.

In a related development, DBS Research has lowered its profit projections for Thai Airways International this year and in 2012, to reflect the softer-than-expected operating environment and an increase in operating expenses.

In 2011, the broker expects THAI to show a net loss of Bt1.7 billion, against earlier forecasts of a Bt2-billion net profit. For 2012, the earning forecast was cut by 36 per cent to Bt5 billion. THAI reported a net loss of Bt7.9 billion in the second quarter of this year.

Meanwhile, Industry Minister Wannarat Charnnukul said yesterday that he was ready to discuss and listen to all suggestions from the private sector about industrial issues such as hiking the minimum wage and floating the price of liquefied petroleum gas (LPG).

He will discuss the Industry Ministry's clear policy after the government declares its policies, he said.

He expects the government to conclude its policies this week. Then it has to report the policies to Parliament within 15 days.

Office of Small and Medium-sized Enterprises Promotion (OSMEP) director-general Yuthasak Supasorn said the new industry minister would call a meeting of all agencies under the ministry starting tomorrow, to deliver his policies.

OSMEP plans to discuss problems associated with hiking the minimum wage, as well as schemes to enhance the readiness of SMEs for implementation of the Asean Economic Community.

-- The Nation 2011-08-16

[ginjag]

The last 3 threads about Thai International intentions have been different, I would still like to know what their intentions are ????? could the Nation do this ????

1st...........the buying of say 20 aircraft with the deliveries phased over about 7 years.

2nd...................The delaying of delivery of I think---A380 and more due to be in service within the Year and a half. this was said the reason being they were short of cash.

3rd..................About 2 weeks ago a decision was made to spend (monies they don't have ) to refurbish the antique 747-400s and others to as it put it '' Get back lost passengers" in the next breath they were running 75% full ????????????????

4th...............Last weeks thread was Thai has ordered some new aircraft - the new A350 ewb. and new short route Jets.

As I said has anyone picked up on this ??? like THE NATION. who the reports came from. OR do they swill this out and not follow it up with QUESTIONS. Like what's going on.

If this is what the CEO of Thai is doing then YES he should be replaced, or whoever is responsible.

[mca]

He insisted that the planned 10 electric-train lines with a flat ticket cost of Bt20 was a viable proposition.

It certainly is.

[Sam Drucker]

The last 3 threads about Thai International intentions have been different, I would still like to know what their intentions are ????? could the Nation do this ????

1st...........the buying of say 20 aircraft with the deliveries phased over about 7 years.

2nd...................The delaying of delivery of I think---A380 and more due to be in service within the Year and a half. this was said the reason being they were short of cash.

3rd..................About 2 weeks ago a decision was made to spend (monies they don't have ) to refurbish the antique 747-400s and others to as it put it '' Get back lost passengers" in the next breath they were running 75% full ????????????????

4th...............Last weeks thread was Thai has ordered some new aircraft - the new A350 ewb. and new short route Jets.

As I said has anyone picked up on this ??? like THE NATION. who the reports came from. OR do they swill this out and not follow it up with QUESTIONS. Like what's going on.

If this is what the CEO of Thai is doing then YES he should be replaced, or whoever is responsible.

I think you haven't been giving it your full attention from the examples you give-

#1 Phase 1 of the fleet plan has 37 aircraft on order through 2017. Phase 2 should be announced later this year, with aircraft orders for 2018 and beyond.

#2 The A380 delay was years ago. They were supposed to originally take them around 2009 or 2010. They were delayed until 2012, and there have been numerous media reports recently citing the preparations for their arrival next year. Honestly, I think THAI wishes they had them now.

#3 The decision to refurbish was not made 2 weeks ago. It has been in the plans and budget for quite a while. A story about the refurishment was written a few weeks ago, describing it in detail and the reasons for it. Some of the reporting was shoddy of course, but I think we get the basic jist of it: they needed a more modern and competitive product to offer economy customers in particular.

#4 The A350 XWB, A320's, and others are all part of the Phase 1 order announced in early June.

If you are unsure of something, check out alternate sources like the Bangkok Post and the THAI website.

Links:

747 Refurbishment plan

THAI Aircraft acquisition plan 2011-2017

[ginjag]

The last 3 threads about Thai International intentions have been different, I would still like to know what their intentions are ????? could the Nation do this ????

1st...........the buying of say 20 aircraft with the deliveries phased over about 7 years.

2nd...................The delaying of delivery of I think---A380 and more due to be in service within the Year and a half. this was said the reason being they were short of cash.

3rd..................About 2 weeks ago a decision was made to spend (monies they don't have ) to refurbish the antique 747-400s and others to as it put it '' Get back lost passengers" in the next breath they were running 75% full ????????????????

4th...............Last weeks thread was Thai has ordered some new aircraft - the new A350 ewb. and new short route Jets.

As I said has anyone picked up on this ??? like THE NATION. who the reports came from. OR do they swill this out and not follow it up with QUESTIONS. Like what's going on.

If this is what the CEO of Thai is doing then YES he should be replaced, or whoever is responsible.

I think you haven't been giving it your full attention from the examples you give-

#1 Phase 1 of the fleet plan has 37 aircraft on order through 2017. Phase 2 should be announced later this year, with aircraft orders for 2018 and beyond.

#2 The A380 delay was years ago. They were supposed to originally take them around 2009 or 2010. They were delayed until 2012, and there have been numerous media reports recently citing the preparations for their arrival next year. Honestly, I think THAI wishes they had them now.

#3 The decision to refurbish was not made 2 weeks ago. It has been in the plans and budget for quite a while. A story about the refurishment was written a few weeks ago, describing it in detail and the reasons for it. Some of the reporting was shoddy of course, but I think we get the basic jist of it: they needed a more modern and competitive product to offer economy customers in particular.

#4 The A350 XWB, A320's, and others are all part of the Phase 1 order announced in early June.

If you are unsure of something, check out alternate sources like the Bangkok Post and the THAI website.

Links:

747 Refurbishment plan

THAI Aircraft acquisition plan 2011-2017

I maybe not bang on with the dates the decisions were made as I was not in the board room at the time.

1...I said SAY 20 and I knew it was more -but I was near enough with the approx 7 year phase.

2...The A380 orders to be delivered this and next year-together with others -Airbus were informed to put the order on hold, BECAUSE we are short of cash. this was recent.

I think your getting mixed up with the delay in making-and tests years ago=that has nothing to do with delaying these recent jets arrival.

3 My comment was true about millions and millions to be spent on refurb, and my answer was why didn't they use the cash to get the delivery of new aircraft. instead of poshing up antiquated 747s.

4 .. this is what was on the thread. and cannot have this order as the aircraft (A350) has not been flown and tested yet.

If you want to get yourself up to date with what I posted, spend the time to look up the threads on Thai visa. If these reports posted on Visa are wrong you complain to The Nation not me. I merely read and comment. No-one in this world is perfect as you misunderstood some points didn't you, So I suppose were both guilty of errors. More understanding here is needed, and would help if you looked up threads from Thai -via Nation.

Edited August 16, 2011 by ginjag

[Sam Drucker]

The last 3 threads about Thai International intentions have been different, I would still like to know what their intentions are ????? could the Nation do this ????

1st...........the buying of say 20 aircraft with the deliveries phased over about 7 years.

2nd...................The delaying of delivery of I think---A380 and more due to be in service within the Year and a half. this was said the reason being they were short of cash.

3rd..................About 2 weeks ago a decision was made to spend (monies they don't have ) to refurbish the antique 747-400s and others to as it put it '' Get back lost passengers" in the next breath they were running 75% full ????????????????

4th...............Last weeks thread was Thai has ordered some new aircraft - the new A350 ewb. and new short route Jets.

As I said has anyone picked up on this ??? like THE NATION. who the reports came from. OR do they swill this out and not follow it up with QUESTIONS. Like what's going on.

If this is what the CEO of Thai is doing then YES he should be replaced, or whoever is responsible.

I think you haven't been giving it your full attention from the examples you give-

#1 Phase 1 of the fleet plan has 37 aircraft on order through 2017. Phase 2 should be announced later this year, with aircraft orders for 2018 and beyond.

#2 The A380 delay was years ago. They were supposed to originally take them around 2009 or 2010. They were delayed until 2012, and there have been numerous media reports recently citing the preparations for their arrival next year. Honestly, I think THAI wishes they had them now.

#3 The decision to refurbish was not made 2 weeks ago. It has been in the plans and budget for quite a while. A story about the refurishment was written a few weeks ago, describing it in detail and the reasons for it. Some of the reporting was shoddy of course, but I think we get the basic jist of it: they needed a more modern and competitive product to offer economy customers in particular.

#4 The A350 XWB, A320's, and others are all part of the Phase 1 order announced in early June.

If you are unsure of something, check out alternate sources like the Bangkok Post and the THAI website.

Links:

747 Refurbishment plan

THAI Aircraft acquisition plan 2011-2017

I maybe not bang on with the dates the decisions were made as I was not in the board room at the time.

1...I said SAY 20 and I knew it was more -but I was near enough with the approx 7 year phase.

2...The A380 orders to be delivered this and next year-together with others -Airbus were informed to put the order on hold, BECAUSE we are short of cash. this was recent.

I think your getting mixed up with the delay in making-and tests years ago=that has nothing to do with delaying these recent jets arrival.

3 My comment was true about millions and millions to be spent on refurb, and my answer was why didn't they use the cash to get the delivery of new aircraft. instead of poshing up antiquated 747s.

4 .. this is what was on the thread. and cannot have this order as the aircraft (A350) has not been flown and tested yet.

If you want to get yourself up to date with what I posted, spend the time to look up the threads on Thai visa. If these reports posted on Visa are wrong you complain to The Nation not me. I merely read and comment. No-one in this world is perfect as you misunderstood some points didn't you, So I suppose were both guilty of errors. More understanding here is needed, and would help if you looked up threads from Thai -via Nation.

Don't know what else I can tell you, except to point out the reality of what is happening at THAI. Overall, I would say they are more stable and have had more consistency of leadership and direction in the last 2 years, and less political meddling, than has been the case for a long time.

I reviewed the threads; it is not clear how you are reaching your conclusions based on the threads, but regardless, I linked some sources in my last post with current information.

A few additional comments in response to yours:

#2 No, I was not referring to the development delays for the A380; I was referring to the decision in 2009 to delay the delivery of the THAI A380's from 2010 to 2012. That was due to a cash problem then, and a perceived lack of need due to the economic downturn. That event is old news and is not recent! THAI is preparing to receive the first A380 in the 3rd quarter of 2012. I believe the delivery schedule is 3 for 2012 and 3 for 2013.

#3 Possible factors for refurbing the 747s instead of purchasing new include the remaining service life of the aircraft, cost to refurb compared to acquiring new aircraft, and availability of new aircraft.

#4 Why do you think Airbus can't take orders for the A350 (simply because it hasn't flown or been flight tested yet?) Aircraft are ordered years in advance. Are you aware that Boeing has over 800 orders for the 787, and they haven't delivered the first one yet? And they had most of those orders before it flew for the first time also. If you are perplexed by this A350 order, you might be further perplexed that THAI has ordered 787's also. Both of those aircraft types are scheduled for delivery to THAI starting around 2016.

[ginjag]

The last 3 threads about Thai International intentions have been different, I would still like to know what their intentions are ????? could the Nation do this ????

1st...........the buying of say 20 aircraft with the deliveries phased over about 7 years.

2nd...................The delaying of delivery of I think---A380 and more due to be in service within the Year and a half. this was said the reason being they were short of cash.

3rd..................About 2 weeks ago a decision was made to spend (monies they don't have ) to refurbish the antique 747-400s and others to as it put it '' Get back lost passengers" in the next breath they were running 75% full ????????????????

4th...............Last weeks thread was Thai has ordered some new aircraft - the new A350 ewb. and new short route Jets.

As I said has anyone picked up on this ??? like THE NATION. who the reports came from. OR do they swill this out and not follow it up with QUESTIONS. Like what's going on.

If this is what the CEO of Thai is doing then YES he should be replaced, or whoever is responsible.

I think you haven't been giving it your full attention from the examples you give-

#1 Phase 1 of the fleet plan has 37 aircraft on order through 2017. Phase 2 should be announced later this year, with aircraft orders for 2018 and beyond.

#2 The A380 delay was years ago. They were supposed to originally take them around 2009 or 2010. They were delayed until 2012, and there have been numerous media reports recently citing the preparations for their arrival next year. Honestly, I think THAI wishes they had them now.

#3 The decision to refurbish was not made 2 weeks ago. It has been in the plans and budget for quite a while. A story about the refurishment was written a few weeks ago, describing it in detail and the reasons for it. Some of the reporting was shoddy of course, but I think we get the basic jist of it: they needed a more modern and competitive product to offer economy customers in particular.

#4 The A350 XWB, A320's, and others are all part of the Phase 1 order announced in early June.

If you are unsure of something, check out alternate sources like the Bangkok Post and the THAI website.

Links:

747 Refurbishment plan

THAI Aircraft acquisition plan 2011-2017

I maybe not bang on with the dates the decisions were made as I was not in the board room at the time.

1...I said SAY 20 and I knew it was more -but I was near enough with the approx 7 year phase.

2...The A380 orders to be delivered this and next year-together with others -Airbus were informed to put the order on hold, BECAUSE we are short of cash. this was recent.

I think your getting mixed up with the delay in making-and tests years ago=that has nothing to do with delaying these recent jets arrival.

3 My comment was true about millions and millions to be spent on refurb, and my answer was why didn't they use the cash to get the delivery of new aircraft. instead of poshing up antiquated 747s.

4 .. this is what was on the thread. and cannot have this order as the aircraft (A350) has not been flown and tested yet.

If you want to get yourself up to date with what I posted, spend the time to look up the threads on Thai visa. If these reports posted on Visa are wrong you complain to The Nation not me. I merely read and comment. No-one in this world is perfect as you misunderstood some points didn't you, So I suppose were both guilty of errors. More understanding here is needed, and would help if you looked up threads from Thai -via Nation.

Don't know what else I can tell you, except to point out the reality of what is happening at THAI. Overall, I would say they are more stable and have had more consistency of leadership and direction in the last 2 years, and less political meddling, than has been the case for a long time.

I reviewed the threads; it is not clear how you are reaching your conclusions based on the threads, but regardless, I linked some sources in my last post with current information.

A few additional comments in response to yours:

#2 No, I was not referring to the development delays for the A380; I was referring to the decision in 2009 to delay the delivery of the THAI A380's from 2010 to 2012. That was due to a cash problem then, and a perceived lack of need due to the economic downturn. That event is old news and is not recent! THAI is preparing to receive the first A380 in the 3rd quarter of 2012. I believe the delivery schedule is 3 for 2012 and 3 for 2013.

#3 Possible factors for refurbing the 747s instead of purchasing new include the remaining service life of the aircraft, cost to refurb compared to acquiring new aircraft, and availability of new aircraft.

#4 Why do you think Airbus can't take orders for the A350 (simply because it hasn't flown or been flight tested yet?) Aircraft are ordered years in advance. Are you aware that Boeing has over 800 orders for the 787, and they haven't delivered the first one yet? And they had most of those orders before it flew for the first time also. If you are perplexed by this A350 order, you might be further perplexed that THAI has ordered 787's also. Both of those aircraft types are scheduled for delivery to THAI starting around 2016.

I NEVER said you can't take orders for A350 because it isn't built. do not screw my posts up.

I am aware about the dreamliner thanks, and am not in the slightest perplexed re the order of A350 as it looks like a smart buy.

But Mr. defender of Thai, You did say that this new man(of 2 years is good) maybe but his turnaround of cash is a problem, and the erratic ordering is somewhat confusing.

I can only add with no cash, and this is funny===how many aircraft have been ordered altogether?? my god even over a period of a few years, new A380s=A350ewb=and all the others including the dreamliners. WHERE is the money coming from, do you realise how much money is involved=SURE YOU DO= now do you understand the jist of my post.

And don't tell me you refurb completely ancient 747-400s and not lose money ??? as the new orders come in as you say ARE where are these costly refurbs going-scrap ??? 25 year old,..... If I had money to order all this lot 30-40 new aircraft I wouldn't refurbish.

like ordering 30 Rolls Royce cars, but having no cash, I would call it big time speculation in a world downturn, they must be in a bad way to have to refurb.

Please if you want to inform me, or correct me do it, but don't turn around bits to suit yourself.

Please answer this point-would you with no money order all these aircraft and feel comfotable-because I don't see where they have cancelled any orders, so presume the deliveries are still on, and the refurbs???

[Sam Drucker]

Honestly, I'm not trying to "screw your posts up" or twist things around. But there is an obvious disconnect due to your reading comprehension of what you read in previous threads, and/or inaccurate information in the threads themselves. I tried to review some of your contentions in previous threads yesterday, and I could not find the claims you made. I also provided you links to the current situation on aircraft orders and refurbishments. This should have given you a clue that maybe what you read before was wrong, or that you didn't understand it correctly when you read it, or that you don't remember it accurately.

Now to address some of your most recent questions and contentions:

"I NEVER said you can't take orders for A350 because it isn't built. do not screw my posts up."

-Here's what you actually did say:

".. this is what was on the thread. and cannot have this order as the aircraft (A350) has not been flown and tested yet."

As for the aircraft purchases and leases, the money is coming from THAI and the banks and the leasing companies. The cash problems at THAI were 2 years ago, not now. I kind of thought you would connect the dots on this one when THAI deferred the A380 deliveries 2 years ago, but is now in a position where they are ready to take them.

About refurbing the 747s, who says these birds are 25 years old? (The oldest 747-400 in service is 22 years old, and THAI got their first ones a few years later.) THAI's oldest 744's they plan to convert to freighters (this has been well publicized.) It's the newer ones (around 10-15 years old?) that are being refurbed. And FYI, Delta Air Lines is currently refurbing the 744's they inherited from Northwest Airlines (who was the launch customer for the 744 and thus, got the first ones.) So it must make some financial sense to more than just THAI Airways to refurb some of these aircraft. And obviously, they are in a better position with the information available to them to make that decision than either you or I. I'll also point out that Delta is not in a financial bind currently that is forcing them to refurb rather than buy new airplanes. They plan to announce a large aircraft order late this year for about 200 airplanes.

Please answer this point-would you with no money order all these aircraft and feel comfotable-because I don't see where they have cancelled any orders, so presume the deliveries are still on, and the refurbs???

As you state the question, true, I would feel uncomfortable. However, the contentions in the question are wrong. THAI does have money. They aren't broke. They refinanced after the issues of a few years ago, and business turned up again. And they also have the Thai government as partial owner and backing them up too. And really, the question of "comfort" with all these orders and refurbs you really don't even need to ask. Because it should be obvious that the banks, leasing companies, and manufacturers (who have access to THAI's detailed financial information) are all comfortable enough with the situation that they have put deals together with THAI.

Let's get together sometime so you can buy me a beer!

[ginjag]

Honestly, I'm not trying to "screw your posts up" or twist things around. But there is an obvious disconnect due to your reading comprehension of what you read in previous threads, and/or inaccurate information in the threads themselves. I tried to review some of your contentions in previous threads yesterday, and I could not find the claims you made. I also provided you links to the current situation on aircraft orders and refurbishments. This should have given you a clue that maybe what you read before was wrong, or that you didn't understand it correctly when you read it, or that you don't remember it accurately.

Now to address some of your most recent questions and contentions:

"I NEVER said you can't take orders for A350 because it isn't built. do not screw my posts up."

-Here's what you actually did say:

".. this is what was on the thread. and cannot have this order as the aircraft (A350) has not been flown and tested yet."

As for the aircraft purchases and leases, the money is coming from THAI and the banks and the leasing companies. The cash problems at THAI were 2 years ago, not now. I kind of thought you would connect the dots on this one when THAI deferred the A380 deliveries 2 years ago, but is now in a position where they are ready to take them.

About refurbing the 747s, who says these birds are 25 years old? (The oldest 747-400 in service is 22 years old, and THAI got their first ones a few years later.) THAI's oldest 744's they plan to convert to freighters (this has been well publicized.) It's the newer ones (around 10-15 years old?) that are being refurbed. And FYI, Delta Air Lines is currently refurbing the 744's they inherited from Northwest Airlines (who was the launch customer for the 744 and thus, got the first ones.) So it must make some financial sense to more than just THAI Airways to refurb some of these aircraft. And obviously, they are in a better position with the information available to them to make that decision than either you or I. I'll also point out that Delta is not in a financial bind currently that is forcing them to refurb rather than buy new airplanes. They plan to announce a large aircraft order late this year for about 200 airplanes.

Please answer this point-would you with no money order all these aircraft and feel comfotable-because I don't see where they have cancelled any orders, so presume the deliveries are still on, and the refurbs???

As you state the question, true, I would feel uncomfortable. However, the contentions in the question are wrong. THAI does have money. They aren't broke. They refinanced after the issues of a few years ago, and business turned up again. And they also have the Thai government as partial owner and backing them up too. And really, the question of "comfort" with all these orders and refurbs you really don't even need to ask. Because it should be obvious that the banks, leasing companies, and manufacturers (who have access to THAI's detailed financial information) are all comfortable enough with the situation that they have put deals together with THAI.

Let's get together sometime so you can buy me a beer!

Lets get together sometime so you can buy me a beer

I wanted to add in a short time this ceo has been at the helm and the lack of passengers global over the last 2 years, Thai were trying to win back customers, In 2 years and none of the say 40 aircraft (guess) cancelled, it will be interesting to see them all taking up tarmac space in Swampy.

I am a customer of Thai, but not of late because of pricing and other matters, and for one would be overjoyed to have new aircraft to sit in with ticket affordable to the everyday passenger. TIME WILL TELL.

on the A350 answer some part of the sentence was edited,

Edited August 17, 2011 by ginjag