Thai Airways' Cargo Unit Braces For Bt100M Loss

[webfact]

THAI CARGO

Thai Airways' cargo unit braces for Bt100m loss

Nongnapas Maipanit

The Nation

BANGKOK: -- Because of the flood crisis last year and the wider effects of the global economic downward trend, Thai Airways International's cargo business is forecast to lose Bt100 million this year.

The business' total revenue is also predicted to miss its Bt30-billion target by 5 per cent this year. Its fuel cost has also been reduced by 4-5 per cent from the lower volume of goods. However, revenue is forecast to grow to Bt31.5 billion next year thanks to greater air-cargo demand and the return of aircraft after their leases expire.

Pichai Chunganuwad, managing director of the cargo and commercial mail business, said yesterday that the loss had been carried over from last year's devastating flood, further suspensions of manufacturing and export delays. Manufacturers are also worried that their imported materials arriving at Suvarnabhumi Airport cannot be transported to their production plants.

The airline has faced more competition from logistics operators using articulated trucks to carry electronic goods to Vietnam, mainland China, Hong Kong and Singapore. They can offer door-to-door delivery at a lower cost than air freight to attract customers.

To strengthen competitiveness, the company has adjusted its business plan to cope with the changing environment by installing advanced information technology to help manage business by assessment, laying down a marketing plan, and improving efficiency of the warehouse system. It will also manage the follow-up of goods. The strategy also aims to reduce operating costs.

THAI is planning to lease aircraft cargo space for one year, which is scheduled for early next month.

Its air cargo department manages two aircraft as well as space in commercial planes, its main marketing channels.

It is forecast that the air-freight service will pick up in the coming fourth quarter, which is the strong purchasing season for Christmas. Total loading volume this year is nearly the same as last year's 700,000 tonnes, which is mainly carried on commercial aircraft, of which 5-10 per cent is delivered by air cargo.

THAI's new IT system will be implemented next April 1 as planned to comply with the International Air Transport Association. The company has to pay an average of Bt100 million for the technology system's development over an eight-year contract. However, it is expected to break even within three years.

-- The Nation 2012-09-28

[jcw]

Nothing like the $45 AUD (usd) per KG for excess baggage.

20.4kg, rounded up to 21kg and charged $45 AUD out of Sydney recently for being 0.4kg over. I WILL NEVER travel Thai again.

I am considering taking them to small claims as 0-.4 should be round down and 0.5 - 0.9 should be rounded up. They are even doing their scum practice in the overseas ports.

[kartman]

Nothing like the $45 AUD (usd) per KG for excess baggage.

20.4kg, rounded up to 21kg and charged $45 AUD out of Sydney recently for being 0.4kg over. I WILL NEVER travel Thai again.

I am considering taking them to small claims as 0-.4 should be round down and 0.5 - 0.9 should be rounded up. They are even doing their scum practice in the overseas ports.

I would have asked them for the latest weights check cert for the scales and not moved until produced.

[asiawatcher]

A loss of USD3+ million is not even 5% of one international aircraft, easily handled. But predicting 31.5BN for next year? I hope the road transport industry takes them apart. They are expensive, purely based on money motivation and nothing about service - and then of course there are Thai Customs to deal with - nominated as the most corrupt segment of the Thai Government - and rightfully so.

[MikeThaison]

Nothing like the $45 AUD (usd) per KG for excess baggage.

20.4kg, rounded up to 21kg and charged $45 AUD out of Sydney recently for being 0.4kg over. I WILL NEVER travel Thai again.

I am considering taking them to small claims as 0-.4 should be round down and 0.5 - 0.9 should be rounded up. They are even doing their scum practice in the overseas ports.

Another wonderful example of the level of intelligence the TV offers. . . Most people with half a brain would have removed .5 kilos to make it 19.9 and carried the .5 kg on board.

[bdenner]

Another wonderful example of the level of intelligence the TV offers. . . Most people with half a brain would have removed .5 kilos to make it 19.9 and carried the .5 kg on board.

Couldn't agree more, but in saying that I have never been charged for overweight baggage on Thai International or Domestic flights.

[Bramdaddy]

You won't find any empathy from me. Take your losses. Corrupt customs officials at Swampy ripped me off while handling the baggage I'd shipped. They are scum. So let it pour. Let their systems break. They deserve to go under.

[scotto]

I have never been charged for overweight bags even last time

i thought for sure i would cop it as both suitcases were over by more than 2kilos

i just smiled at the check inn lady in swampy and she let it go thank you thai

airways.

all i am saying is that a smile can go along way!

[Samedeepwaterasyou]

This thread is about TG Cargo's subsidiary losses.

Not about excess luggage charges.

Come on guys, there are no passengers on cargo flights ...

[MEL1]

Let their systems break.

Well the last sentence of the article does actually say. "However, it is expected to break, even within three years."

-mel

[Asiantravel]

how this company continues to survive is beyond me?

[IsaanUSA]

This thread is about TG Cargo's subsidiary losses.

Not about excess luggage charges.

Come on guys, there are no passengers on cargo flights ...

No kidding. This thread went way off topic.

This company must be pretty nervous about all the rail talk if truck service is hurting them.

And if their revenue was 28.5 billion this year, how do they plan to have revenues of 31.5 billion next year? That's more than 10% growth.

[GentlemanJim]

In the UK it would never reach the papers if an airline department were going to lose 2 million pounds in a year. Chump change really!

[Bramdaddy]

This thread is about TG Cargo's subsidiary losses.

Not about excess luggage charges.

Come on guys, there are no passengers on cargo flights ...

I was picking up my packages from Cargo at Swampy. They had been mailed a day earlier from the UAE. The customs official took me for a ride I care not to relive by detail in this post. But suffice it to say, I paid the corrupt official more than he deserved. This news of their failing is music to my ears.

[jcw]

Another wonderful example of the level of intelligence the TV offers. . . Most people with half a brain would have removed .5 kilos to make it 19.9 and carried the .5 kg on board.

Couldn't agree more, but in saying that I have never been charged for overweight baggage on Thai International or Domestic flights.

Well I tried that path, they also weighed my carry on which by chance was 6.8kg with a 7kg limit, the lady told me I would still be over the limit and i had to pay orleve some thing behind, which means putting it in the garbage bin as I was already dropped off and due to the majority of the check in counters closed, it was at least a 30 min wait for check in. So please munch on your snide remark. The easy thing to do is to share with other people the pathetic treatment by them and personally never travel on them again, simple. Next trip will be on Singapore Airlines.