THAI posts Bt8 billion loss in Q2

[webfact]

Thai posts Bt8 billion loss in Q2
By English News



BANGKOK, Aug 15 – Thai Airways International (THAI) suffered a net loss of Bt8.439 billion in the second quarter of this year, mainly due to the volatile Thai currency early this year, president Sorajak Kasemsuvan said today.

He said the loss from the exchange rate alone was Bt2.964 billion while depreciation of unused aircraft posted a loss of Bt3.593 billion.

Without the exchange rate factor, the country’s flag carrier could have made a Bt4.5 billion profit despite slower business in Q2 which is normally an off-peak tourist season, he said.

THAI was also delivered seven new aircraft in Q2, the most in the airline’s history, abruptly shooting up the company’s expense, said Mr Sorajak who also blamed the global economic slowdown as another negative factor that impacted air cargo service.

Air cargo service has been affected by the economic situation since 2011 and tough competition has reduced THAI’s parcel and cargo revenue by 3.9 per cent quarter-on-quarter.

Mr Sorajak said THAI’s operating profit in the first half of the year was Bt101.75 billion while the expenses were Bt100.207 billion.

The overall loss was Bt156 million, compared to a Bt3.691 billion profit in the same period last year.

The THAI president said the heavy loss compelled the company to lower its profit target from Bt6 billion to Bt4 billion, adding that the company would expand new routes to China and Japan in Q4, cut expenses and assign some routes to China and Japan to its sister airline, THAI Smile. (MCOT online news)

-- TNA 2013-08-15

[MaxLee]

BANGKOK, Aug 15 Thai Airways International (THAI) suffered a net loss of Bt8.439 billion in the second quarter of this year, mainly due to the volatile Thai currency early this year, president Sorajak Kasemsuvan said today.

"You nasty nasty currency, you nasty nasty economy, it's your fault that our business doesn't profit!!!!"

THAI Airways, stop saving face and respond to the changing trends of customers.

Edited August 15, 2013 by MaxLee

[boomerangutang]

"......while depreciation of unused aircraft posted a loss of Bt3.593 billion." Wow, that's a lot of depreciation. I'm sure there's nothing fishy there (except maybe fish swimming around the wheel wells of the planes which were parked in a flood plain).

Seriously though, if there are unused planes, why not use one or more for politicians, and other VIPs - instead of purchasing brand new planes, as a recent article suggested Yingluck and PT were planning to do. If Ms Yingluck doesn't like the look of the plane, she can have it painted pink (for girls) or white (the color all Thai women want their epidermii to be). A paint job would be a lot cheaper than the retail price of a brand new plane. Plus, for Thais, appearances account for more than substance.

[jbrain]

Don't worry, everything will sooth out once they opened the restaurant in Soi Nana.

[FarangTalk]

Not long ago they posted profit for the first time in a long while. It seems that old habits do indeed die hard and they have reverted back to their old ways of mismanagement and cronyism. They are at least reaping what they have sown.

The airport and airport link have also failed. Don Muang back open again (for what is it now; the third time?) and it's easier flying on a budget carrier to DMK than it is to fly full fare and arrive at Suvarnabhumi. On last arrival at BKK I was greeted with a bus journey followed by a 50 minute wait at immigration. DMK is a much better alternative, quicker immigration and no buses to and from aircraft.

The airport link is saddled with billions of debt which it will never recoup at current passenger volumes.

All nice ideas to promote the Kingdom and gain face but as usual all ultimately flawed, mired in corruption and poorly executed. With Thai Airways, the only concern is funneling money to the right people; the concern is not about making profit for the company or having a sustainable business model.

[NongKhaiKid]

BANGKOK, Aug 15 Thai Airways International (THAI) suffered a net loss of Bt8.439 billion in the second quarter of this year, mainly due to the volatile Thai currency early this year, president Sorajak Kasemsuvan said today.

"You nasty nasty currency, you nasty nasty economy, it's your fault that our business doesn't profit!!!!"

THAI Airways, stop saving face and respond to the changing trends of customers.

And free 1st class flights for those and such as those

[Notstupid30]

Thai Airways have ordered 37 new planes. They will meet a certain specification in that the cock pit will be where the black box normally is.

[lomatopo]

These are the challenges you face when 70 - 80% of your revenue is denominated in foreign currencies. And they may not be allowed to hedge on currencies?

Note that for the full year they expect to be profitable to the tune of 4 billion baht.

[jbrain]

Someone care to explain Thai maths to me

Thai Airways International (THAI) suffered a net loss of Bt8.439 billion in the second quarter of this year

He said the loss from the exchange rate alone was Bt2.964 billion

Without the exchange rate factor, the country’s flag carrier could have made a Bt4.5 billion profit

[siampolee]

When the management team is nothing more than an excellent retirement home for well connected officials politically, military, police and civil servants there will be nor can be a profit or even a ''break even point.'' The concept of efficient business management doesn't exist in the collective minds of the board and indeed the senior management team are hampered by the heavy weight board they have to support as are the entire work force.

The usual bleating and the blame being apportioned to outside factors as the cause of all the problems.

Easy to solve the problem Just stop Thai flying to all those nasty foreign countries that cause them to lose money, charter the planes out to the government , increased income and money saved by the government not having to buy new aircraft, all those funds in baht stay in the local economy.,Well some percentage of those funds might stay within Thai's coffers with any luck..

.

Edited August 15, 2013 by siampolee

[lawrence1366]

THAI took delivery of seven new aircraft in Q2, the most in the airline’s history while depreciation of unused aircraft posted a loss of Bt3.593 billion? Does this make sense or is this sound financial management where operating profit in the first half of the year was Bt101.75 billion while the expenses were Bt100.207 billion?

Thought Thai appointed a new President to the company not too long ago?

I gave up flying Thai on business trips long time ago when the aircraft was ageing and interiors were shabby. Switched to Etihad where they provide free limo service within 60km of the airport for business travelers.

[Mampara]

So, instead of the Government buying aircraft to be used by a handful of MP's, why don't they buy a few from Thai airways and refurbish them.

[rookball]

i got no idea what happened to thai airline. back in the year 2000 they seem to be priced competitively and meals are pretty much one of the better ones out there, service arent that bad as well.

ever since the entry of asian budget airlines, every other airline seem to be adjusting according for competitiveness except thai air. what the hell is going on? is there a sudden change of management or some sort along the lines? it doesnt make sense to fly tg when sq are just afew quids more but with miles better in all other areas

[OzMick]

These are the challenges you face when 70 - 80% of your revenue is denominated in foreign currencies. And they may not be allowed to hedge on currencies?

Note that for the full year they expect to be profitable to the tune of 4 billion baht.

What they expect may be not be worth expectorate. I'm expecting Miss Australia to show up for an all-nighter - any day soon I reckon.

Edited August 15, 2013 by OzMick

[Redhawk]

Thai Airways missed the bus long time ago so did SAS and some others, exxagerated fees for bad service on aircrafts with bad maintenance, arrogant stuff and crews, mix this with mismanagement and vice versa and voila the baddie is caught dry, the currencies! They will never learn it!

[monkeycountry]

Other news report that the THAI board are unhappy with the president because he lacks "adequate leadership skills".

How on earth does someone become the president of one of the largest companies in the country without adequate leadership skills. Well, I guess posters above me have already given the answer :-)

[yourauntbob]

Correction, Thai airways suffered a huge loss due to corruption and incompetence.

[kimamey]

These are the challenges you face when 70 - 80% of your revenue is denominated in foreign currencies. And they may not be allowed to hedge on currencies?

Note that for the full year they expect to be profitable to the tune of 4 billion baht.

What they expect may be not be worth expectorate. I'm expecting Miss Australia to show up for an all-nighter - any day soon I reckon.

Yes she mentioned that in bed last night. Said it would probably take all night to get a result. Can't see the point myself but perhaps my charm and sophistication gets a bit much for her.

[Thait Spot]

This is the PTP boy they conveniently squeezed in last year at the expense of Piyavasti (or whatever his name is)?

[lee b]

Has nothing to do with the crazy high fares then?

[metisdead]

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Edited August 15, 2013 by metisdead

[Ricardo]

But surely 'Thai Smile' was supposed to fight-off all those unsporting cheaper-airlines, who fly where the customers prefer, and at lower prices ?

Is the plan a cock-up, instead ?

[chooka]

So I guess all these record breaking number of tourists flying into the country aren't flying Thai Airways then. Guess it's time to enact the Thai Business plan, if you are losing customers and sales are down, increase the prices and reduce services that will get you back on track.

[Muirton]

FarangTalk says it all and says it briefly:

"With Thai Airways, the only concern is funneling money to the right people; the concern is not about making profit for the company or having a sustainable business model."

Let me add to that, there is a universal 'sustainable business model' and then there is the Thai business model. And that is to funnel money to the right people.

[chooka]

So, instead of the Government buying aircraft to be used by a handful of MP's, why don't they buy a few from Thai airways and refurbish them.

but but, the little people have already used them and they are dirty. I don't want an old Vios I want a nice new Merc, love the new plane smell.

[MacChine]

LIke your birds..

Thai Airways International (TG) has named media veteran Sorajak Kasemsuvan as the airline’s new president, effective in October. Sorajak will replace Piyasvasti Amranand, who was removed from his post by the state-run carrier’s board (ATW Daily News, May 23). Sorajak is former chairman of the majority state-owned broadcaster MCOT.

That was a mistake Mr. Amranand was an excellent president who had safety foremost.

They begged him to come aboard, too. I rememebr it well they advertised for a year and a half for a president and had to give him much autonomy.

I use to fly Thai Airways and with pleasure, now I go with Malaysia or Singapore- the safety just isn't at Thai anymore -note the current pres's experience.. at a broadcaster.

THAI took delivery of seven new aircraft in Q2, the most in the airline’s history while depreciation of unused aircraft posted a loss of Bt3.593 billion? Does this make sense or is this sound financial management where operating profit in the first half of the year was Bt101.75 billion while the expenses were Bt100.207 billion?

Thought Thai appointed a new President to the company not too long ago?

I gave up flying Thai on business trips long time ago when the aircraft was ageing and interiors were shabby. Switched to Etihad where they provide free limo service within 60km of the airport for business travelers.

[Cnxforever]

Has anybody ever wondered why I have to fly on a 12 hour trip to London heathrow on an old outdated 747 with no inseat individual entertainment system - with 4 movies playing on the entire trip on a monitor like 25 years ago - while I sit on a fairly new 777 on the way to Chiang Mai from Bangkok with in seat entertainment - which is of course turned off on such a short flight ????

Something is very very wrong with Thai Airways planning which aircraft they use on which routes.

To be fair what speaks for Thai is the leg room of 33-34" in economy class on their old 747's - which is still superior to most other airlines.

Honestly the worst trip I had in many many years on a recent trip from St. Maarten in the Carribean to Bangkok via Paris on Air France was the worst I have experienced in a long long time!

I hope Thai can upgrade their planes to meet 21st century demands and still keep the extra legroom in economy - then it is worth paying a little extra because their flights are not cheap compared to the competition from the Middle East.

But I would choose Thai anytime when compared to most of the overpriced, unfriendly, lousy European or American Airlines!

[CockneyGit]

THAI posts Bt8 billion loss..?

Hardly a surprise is it. Old planes, no in-flight entertainment system, stroppy flight attendants, outrageous pricing... need I go on?

For the price of a standard Economy seat with THAI, I can fly BA direct to London in Premium Economy.

Get with the times THAI and you might get some customers back..!!

[xybadog]

May help if they reduced their fares to encourage more passengers. Just looked today and return fare from Heathrow to Bkk with THAI £1100. Same flight, same day only £750 with EVA. Both direct flights.

[dunque]

Someone care to explain Thai maths to me

Thai Airways International (THAI) suffered a net loss of Bt8.439 billion in the second quarter of this year

He said the loss from the exchange rate alone was Bt2.964 billion

Without the exchange rate factor, the country’s flag carrier could have made a Bt4.5 billion profit

sloppy reporting more likely - I am assuming the potential 4.5bn is at the EBITDA and the 8.4bn is bottom line, as they say that operating profit was 101.75bn and expenses 100.2bn so net 1.5bn, plus 2.964bn is 4.5bn near enough