Board Must Explain Dismissal Of Thai Airways President: Editorial

[webfact]

EDITORIAL

Board must explain dismissal of Thai Airways president

The Nation

BANGKOK: -- The national carrier has fired its chief executive, but now it has to explain in proper detail to staff, shareholders and the public why he had to go

The dismissal of Piyasvasti Amranand as president of Thai Airways International (THAI) was somewhat surprising yet not completely unexpected. After months of speculation about the possible sacking of the top executive at the national carrier, the THAI board decided to dismiss Piyasvasti by reasoning that he had a problem in communicating with the board.

Of course, the decision by any company to sack its president is up to the board of directors. But the THAI board should have better communicated with the airline's union and the general public to clear up any doubts that either may have had regarding the dismissal.

First of all, the THAI board has a duty to be fully accountable to the public because more than half of its shares are still held by the Finance Ministry and were paid for with taxpayers' money. In addition, the board has the duty to protect the interests of all shareholders and stakeholders in the national carrier.

Changing the top executives at state enterprises and corporations seems to be the norm with any change of government. In this case the market has, for some time, expected to see the dismissal of the THAI president. After all, Piyasvasti was selected under the previous Democrat government. Piyasvasti himself has denied any political allegiance with the Democrat Party or that his appointment was politically motivated. THAI board chairman Ampon Kittiampon has said that the dismissal does not have any political motive. But that statement will not end public speculation over the dismissal.

Rumours were swirling around for months that Piyasvasti's dismissal was imminent, even though Piyasvasti has reasonably fulfilled his duties as the airline's president. Jamsri Sukchotirat, president of the THAI labour union, said Piyasvasti's removal did not make sense, considering that Piyasvasti has been in constant communication with the company's staff, especially regarding the financial performance and profitability of the airline.

Now, the burden of selecting a suitably qualified person to head THAI will have to be made, if the board indeed considers that Piyasvasti was not up to the task. It now falls to the board to make a decision that will help to keep the national carrier competitive.

THAI will be facing stronger competition not only from regional national carriers but also the burgeoning number of low-cost airlines. The aviation battle is expected to become ever more intense with the ongoing economic troubles in Europe and fluctuating fuel prices.

Piyasvasti should receive some credit for turning around THAI's business. He had a high key performance indicator (KPI) rating of 4.3 per cent out of 5 per cent for this year, although the score is down slightly from last year's 4.6 per cent. If Piyasvasti had a communication issue with the board, as has been cited, such an issue did not seem to reflect on the THAI balance sheet, which saw good profits under his watch.

While the board needs to communicate with the union and the public over the reasons for Piyasvasti's dismissal, it must, at the same time, recruit the right person to head the national carrier. And the reasons should be well communicated to stakeholders to promote transparency.

THAI will need a president with solid business experience, capabilities and vision to drive the national carrier forward in the face of fiercer competition and turbulence from external factors such as the global economic slowdown. Therefore, the board's decision must be well considered if the public is to be convinced that change has been made with the best interests of the public and stakeholders in mind, not simply in response to the winds of political change.

-- The Nation 2012-05-23

[waza]

Was he the wrong colour?

Piyasvasti Amranand (Thai: ปิยสวัสดิ์ อัมระนันทน์) (born 11 July 1953) was Thailand's Energy Minister between 9 October 2006 and 6 February 2008. He is former Secretary-General of the Thai National Energy Policy Office, Chairman of Kasikorn Asset Management and Chairman of Panel of Advisors for CEO of Kasikornbank. His current position is President of Thai Airways International.

The most important law to be passed during his term as Energy Minister was the Energy Industry Act to establish an independent regulatory body for electricity and natural gas industry. The law was also the most important factor which saved PTT Public Co., Ltd from being nationalized in the court case brought against the government and PTT by the Consumers Association.

[Orac]

You would have thought that as well as mentioning that he was appointed by a Democrat government The Nation would mention that he is also married to someone who, at the time of his appointment, was an advisor to Abhisit and is now a Democrat MP.

[Thai at Heart]

Mentioned in the other paper, it now says that the board "disagreed" with the planned purchases of planes.

As I said in the other thread, wait for the contracts to be furiously renegotiated. I guess Boeing and Airbus had better send some boys over with decent handicaps and a penchant for Blue Label, karoke and open an account at Burberry. Brown envelopes enclosed.

[waza]

You would have thought that as well as mentioning that he was appointed by a Democrat government The Nation would mention that he is also married to someone who, at the time of his appointment, was an advisor to Abhisit and is now a Democrat MP.

Monday, 9 October 2006, 15:04 GMT 16:04 UK

Thailand's king has sworn in a post-coup cabinet, chosen by new Prime Minister Gen Surayud Chulanont.

The head of the central bank, Pridiyathorn Devakula, has been named finance minister and deputy premier. Piyasvasti Amranand named as Energy Minister.

The 2007 Thai general elections were held on 23 December. This was the first legislative election after the Council for National Security, a military junta, had overthrown Thailand's elected government and abrogated the constitution on September 19, 2006.......the PPP managed to win 226 out of 480 of the MP seats, close to controlling the majority in the House of Representatives.........In January 2008, a coalition government was announced bringing together the PPP and the five smallest parties. The Democrat Party became the sole opposition party.^{[30]http://en.wikipedia...._election,_2007}

So he was appionted by Prime Minister Gen Surayud Chulanont of the coup party and dismessed by Samak of PPP. Worked as inspector general under the 1997 Dem government and Deputy Permanent Secutary to Thaksin in2002 . Like I said its more about colour or the lack of it, than politics.

Edited May 23, 2012 by waza

[thaicbr]

You would have thought that as well as mentioning that he was appointed by a Democrat government The Nation would mention that he is also married to someone who, at the time of his appointment, was an advisor to Abhisit and is now a Democrat MP.

Who you are married to and political affiliation should matter not IF you are doing a good job. Which it seems he was.

Maybe the board of directors should take a CLOSE look at themselves.

sent from my Wellcom A90+

[webfact]

Thai Airways' labor union gather at Govt House to seek clarification on the recent dismissal of its president Piyasawad /TANN

[Thai at Heart]

Thai Airways' labor union gather at Govt House to seek clarification on the recent dismissal of its president Piyasawad /TANN

Lets clarify. He got fired..........

[Orac]

I agree. But surely, since, the implication is that his removal is politically motivated, his wifes connection wih the democrats should at least merit a mention in the aricle. Not doing so would be akin to talking about Yinglucks appointment as PM without mentioning Thaksin.

[phiphidon]

I agree. But surely, since, the implication is that his removal is politically motivated, his wifes connection wih the democrats should at least merit a mention in the aricle. Not doing so would be akin to talking about Yinglucks appointment as PM without mentioning Thaksin.

The implication of political motivation is nullified somewhat by the fact that the entire board were appointed by the last government and that this board voted unaminously to fire him.

[rixalex]

Positions such as these, are hard currency for the government, used to treat and reward people who have served them in some way. The only way they can dish them out is by getting rid of the incumbents.

[rixalex]

I agree. But surely, since, the implication is that his removal is politically motivated, his wifes connection wih the democrats should at least merit a mention in the aricle. Not doing so would be akin to talking about Yinglucks appointment as PM without mentioning Thaksin.

The implication of political motivation is nullified somewhat by the fact that the entire board were appointed by the last government and that this board voted unaminously to fire him.

That would depend on whether the last government had appointed the entire board based on their political allegiances. Not saying it is not possible or likely, but not having a sheet in front of me with the names of all those on the board and their respective political colouring, i don't know. Perhaps you do?

[Tep]

So he was appionted by Prime Minister Gen Surayud Chulanont of the coup party and dismessed by Samak of PPP. Worked as inspector general under the 1997 Dem government and Deputy Permanent Secutary to Thaksin in2002 . Like I said its more about colour or the lack of it, than politics.

After his term as Secretary General of the National Energy Policy Office expired, he was appointed Director General of the Public Relations Department and then appointed Deputy Director General of the Cabinet Office under the first Taksin Government. Both appointments were short term and the latter could be considered a demotion. He then resigned the civil service and took a position with Kasikorn Bank. His lack of a career in the civil service as a consequence of the election of Mr. Taksin is a clear signal about the political affiliation. This is reinforced by his appointment in the Surayud Government alongside many other technocrats of similar affiliation.

[Tep]

That would depend on whether the last government had appointed the entire board based on their political allegiances. Not saying it is not possible or likely, but not having a sheet in front of me with the names of all those on the board and their respective political colouring, i don't know. Perhaps you do?

The list of the Board of Directors for THAI is on their website. It is also common practice for the Boards of State Enterprises to stand down on the election of a new government and be reappointed or have new appointments made by the incoming government. Also, THAI is classified by the Ministry of Finance as a highly commercial state enterprsie and it has been the practice for some time for such enterprises to have an increasing number of independent Board Directors nominated by the MOF. The Directors Pool program is described on the State Enterprise Policy Office website www.sepo.go.th

[slapout]

The present Minister of Transport seems to have put his 2 baht worth in supporting the dismissal. If polotics are not involved why is the present government even coming on record as supporting the firing????

[dddave]

Didn't he recently make a public statement critical of TG's culture of nepotism? That certainly wouldn't have endeared him to the hierarchy.

Just because it's probably one of their biggest problems has nothing to do with it.

[webfact]

PM orders transport minister to explain decision to sack THAI president Piyasvasti to labour union, believes issue will not escalate /MCOT

[hellodolly]

You would have thought that as well as mentioning that he was appointed by a Democrat government The Nation would mention that he is also married to someone who, at the time of his appointment, was an advisor to Abhisit and is now a Democrat MP.

Who you are married to and political affiliation should matter not IF you are doing a good job. Which it seems he was.

Maybe the board of directors should take a CLOSE look at themselves.

sent from my Wellcom A90+

Agreed if you are doing a good job your politics should not be involved even if you are doing a bad job.

Maybe the Government wanted some one in there who could do as bad a job as they are doing in running the country so they would not look so bad.

Edited May 23, 2012 by hellodolly

[Thai at Heart]

PM orders transport minister to explain decision to sack THAI president Piyasvasti to labour union, believes issue will not escalate /MCOT

Does the "transport minister" even sit on the board of Thai?

http://www.thaiairways.com/about-thai/company-profile/en/board-of-directors.htm

Not that I can see, (although please correct me if wrong). In which case, how would he know the reasons when the Board hasn't even really explained it?

Doesn't this task fall to:

Mr. Ampon Kittiampon

Chairman

[chainarong]

You would have thought that as well as mentioning that he was appointed by a Democrat government The Nation would mention that he is also married to someone who, at the time of his appointment, was an advisor to Abhisit and is now a Democrat MP.

Who you are married to and political affiliation should matter not IF you are doing a good job. Which it seems he was.

Maybe the board of directors should take a CLOSE look at themselves.

sent from my Wellcom A90+

You could be right.

[theajarn]

Turnaround? So THAI was actually making a good profit under this guy?

Well of COURSE it makes perfect sense to fire him! This is THAIland after all.

I'll be laughing when THAI's stock plummets and the company goes bankrupt with the incoming redshirt CEO... steal as much money as you can and rape the company (and the country) for all it's worth, that's the redshirt motto!

[rubl]

The Italians had a good idea in this. Rather than selling their national asset AirItalia to bloody foreigners President Silvio managed to talk his local business associates and friends into taking over the lot at a friendly price, allowing some cleanup and a fresh restart with the useful assets and less people.

[phiphidon]

The Italians had a good idea in this. Rather than selling their national asset AirItalia to bloody foreigners President Silvio managed to talk his local business associates and friends into taking over the lot at a friendly price, allowing some cleanup and a fresh restart with the useful assets and less people.

Meanwhile back on topic as you are wont to say, what has a corrupt Italian President got to do with this case? I think you need to spell it out more because I seem to be missing the point, if there is one.

Edited May 23, 2012 by phiphidon

[volk666]

Acc to Nation Dems appointed only 7 our of 15 members, and dismissal wasn't unanimous either - it was 12:3 vote.

Piyasvasti was appointed to turn the company around and inevitably stepped on some sensitive THAI toes, now, without political backing, the board got back at him, I think it was not the national politics but THAI's internal struggle that spilled out.

I mean you read about two missing engines and people who "lost" them feeling offended, and it kind of makes you wonder what kind of shop they are running there.

[rubl]

The Italians had a good idea in this. Rather than selling their national asset AirItalia to bloody foreigners President Silvio managed to talk his local business associates and friends into taking over the lot at a friendly price, allowing some cleanup and a fresh restart with the useful assets and less people.

Meanwhile back on topic as you are wont to say, what has a corrupt Italian President got to do with this case? I think you need to spell it out more because I seem to be missing the point, if there is one.

Touchy today, aren't you? You must have got out of your bed wrongside.

Anyway as you point out the OP has nothing to do with the former Italian president. It's just that Alitalia had the government as major stakeholder and the buyer/conditions had to be approved by that government.

The link may be the business approach, transparancy, and what so all, Alitalia was known for and Thai is known for.

Hope this helps. Now hop along and get your morning coffee or tea, you'll be in a much better m d soon then

Edited May 23, 2012 by rubl

[pastitche]

The Italians had a good idea in this. Rather than selling their national asset AirItalia to bloody foreigners President Silvio managed to talk his local business associates and friends into taking over the lot at a friendly price, allowing some cleanup and a fresh restart with the useful assets and less people.

Meanwhile back on topic as you are wont to say, what has a corrupt Italian President got to do with this case? I think you need to spell it out more because I seem to be missing the point, if there is one.

Touchy today, aren't you? You must have got out of your bed wrongside.

Anyway as you point out the OP has nothing to do with the former Italian president. It's just that Alitalia had the government as major stakeholder and the buyer/conditions had to be approved by that government.

The link may be the business approach, transparancy, and what so all, Alitalia was known for and Thai is known for.

Hope this helps. Now hop along and get your morning coffee or tea, you'll be in a much better m d soon then

Tut tut uncle - it's almost 3pm in the UK.

[rubl]

The Italians had a good idea in this. Rather than selling their national asset AirItalia to bloody foreigners President Silvio managed to talk his local business associates and friends into taking over the lot at a friendly price, allowing some cleanup and a fresh restart with the useful assets and less people.

Meanwhile back on topic as you are wont to say, what has a corrupt Italian President got to do with this case? I think you need to spell it out more because I seem to be missing the point, if there is one.

Touchy today, aren't you? You must have got out of your bed wrongside.

Anyway as you point out the OP has nothing to do with the former Italian president. It's just that Alitalia had the government as major stakeholder and the buyer/conditions had to be approved by that government.

The link may be the business approach, transparancy, and what so all, Alitalia was known for and Thai is known for.

Hope this helps. Now hop along and get your morning coffee or tea, you'll be in a much better m d soon then

Tut tut uncle - it's almost 3pm in the UK.

True, but it was just past midday in the UK when phiphidon posted

PS currently 7 hours time difference ?

Edited May 23, 2012 by rubl

[phiphidon]

Meanwhile back on topic as you are wont to say, what has a corrupt Italian President got to do with this case? I think you need to spell it out more because I seem to be missing the point, if there is one.

Touchy today, aren't you? You must have got out of your bed wrongside.

Anyway as you point out the OP has nothing to do with the former Italian president. It's just that Alitalia had the government as major stakeholder and the buyer/conditions had to be approved by that government.

The link may be the business approach, transparancy, and what so all, Alitalia was known for and Thai is known for.

Hope this helps. Now hop along and get your morning coffee or tea, you'll be in a much better m d soon then

Tut tut uncle - it's almost 3pm in the UK.

True, but it was just past midday in the UK when phiphidon posted

PS currently 7 hours time difference ?

You honestly think I'm in the UK? Do get a life. There are definately far, far, better places than Bangkok to "live" but the UK isn't one of them.

[SomTumTiger]

You honestly think I'm in the UK? Do get a life. There are definately far, far, better places than Bangkok to "live" but the UK isn't one of them.

And yet the continue fascination with posting in a Thailand forum. Who's life needs getting?

[rubl]

Touchy today, aren't you? You must have got out of your bed wrongside.

Anyway as you point out the OP has nothing to do with the former Italian president. It's just that Alitalia had the government as major stakeholder and the buyer/conditions had to be approved by that government.

The link may be the business approach, transparancy, and what so all, Alitalia was known for and Thai is known for.

Hope this helps. Now hop along and get your morning coffee or tea, you'll be in a much better m d soon then

Tut tut uncle - it's almost 3pm in the UK.

True, but it was just past midday in the UK when phiphidon posted

PS currently 7 hours time difference ?

You honestly think I'm in the UK? Do get a life. There are definately far, far, better places than Bangkok to "live" but the UK isn't one of them.

My excuses, from previous posts I somehow had gotten the impression you were in the UK. Still being somewere in the boondocks of Thailand getting up when the cock crows, by 7:30PM you might not need a morning, but an evening coffee/tea