The 2 stratetic errors of the Democrats.

[Ricardo]

TG will hire (or already have hired) top management people for the the new airline. Knowing Khun Piyavasti's business sense, I trust that he will hire the right people for the job. Explain to me why you think the opposite is more likely.

I made no comment, negative or otherwise, about Khun Piyavasti's hiring policy for Thai Smile.

But I am concerned, as I explained before, that the new wholly-owned subsidiary may distract TG's top-management from the strategic-tasks of trimming costs/headcount and turning-round the main airline.

[tombkk]

TG will hire (or already have hired) top management people for the the new airline. Knowing Khun Piyavasti's business sense, I trust that he will hire the right people for the job. Explain to me why you think the opposite is more likely.

I made no comment, negative or otherwise, about Khun Piyavasti's hiring policy for Thai Smile.

But I am concerned, as I explained before, that the new wholly-owned subsidiary may distract TG's top-management from the strategic-tasks of trimming costs/headcount and turning-round the main airline.

Then it comes down to how much faith we have in the top management's abilities. I believe the new team under Khun Piyasti's leadership will do the right thing, you are concerned that they won't. Only time will tell - let's discuss again when the new airline has been operating for a year.

[Heng]

It's the same old problem. There are some segments of society here that simply don't plan 5-10 years ahead and can't operate under a budget. I'd imagine a lot of TV members get to witness this first hand close up.

[tombkk]

It's the same old problem. There are some segments of society here that simply don't plan 5-10 years ahead and can't operate under a budget. I'd imagine a lot of TV members get to witness this first hand close up.

LOL! How "close up" do you mean?

[Heng]

The kind where they find out some folks just can't survive/send their kids to school/stay in business/etc. on incomes of 5,10,15,100,300,500+k Baht a month. It's not always the amounts involved.... nor the livery on the planes in this case, that is the problem.

[zzaa09]

Can I ask an obvious question? If you already have a low cost airline, why would you want to start a new one?

Now I am no business expert, but would it not make more sense to give Nok Air a boost, or if that is not succeeding, rebrand it as a new airline, buy some more aircraft for it? Surely low cost airlines are about running them efficiently rather than splashing out on a new airline (financed from god knows where), when you are bored with what you have? It just seems the mindset of setting up a new budget airline does not reflect the way the management are going about it?

Bottom line: groups are reeping large profits somwhere.

Follow the illusionary profit motive.

Has nothing to do with service or good business intentions.