THAI posts Bt8 billion loss in Q2

[Dap]

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.

Decrepid aircraft = decrepid face

[Dap]

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 :-)

And the previous president (remember him? the one that was posting plus side income/profits) got the boot for not

following the company line of ... freebies, etc, etc. Idiots!

Edited August 15, 2013 by Dap

[Thai at Heart]

How can you generate such a huge amount of depreciation on unused planes?

Why aren't they in service or sold off?

[IsaanUSA]

How can you generate such a huge amount of depreciation on unused planes?

Why aren't they in service or sold off?

http://lmgtfy.com/?q=airline+depreciation+method

[tominbkk]

Can't admit that their semi-monopoly on flights in and out of Thailand was the reason for their success in days past, and refusing to change with the times.

[Bpuumike]

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..!!

Indeed, outrageously overpriced so where is that going if not improved aircraft and services.

Now, let me guess...

[jpduggan]

And Yingluck wants to pull the government business from them too. Maybe she'll buy four of the new planes from them at discount of course

[anon7867763]

Has anybody ever wondered why I have to fly on a 12 hour trip to London heathrow on an old outdated 747 with no inseat individual entertainment system - with 4 movies playing on the entire trip on a monitor like 25 years ago - while I sit on a fairly new 777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!

Dream on ! the new 777's have solid boxes under the seats holding the life jackets , no chance to stretch your legs , try that on a 12 hour flight

[spirit47]

About cargo, the frightrates for Im- and Export to Thailand are o high, if you don't have a container. The Chinese much smarter, they sell a lot worldwide over the Internet. But Thailand...don't have real ebay, no amazon, and the few Online shops mostly for shoping-idiots. Now I must start to make the Christmas gift for my Mum in Europe, 3 months by ship...

[MickeyM]

Related to potential cost savings, I have always wondered why Thai Cabin crew and pilots do overnight stays domestic flights.

I was once on a one hour (early morning) flight to Surat Thani; the crew was in my hotel that day/night, flying back the next day.

(Probably a union issue).

Many years ago there was a Los Angeles based airline that flew only on the West Coast; when advertising for cabin crew positions, their ad always said "Fly with us and sleep at home every night". They had it right.

[lomatopo]

If anyone wishes to review the quarterly financials: http://www.thaiairways.com/about-thai/investor-relations/en/investor.html

[tirekicker]

How can you expect to run a profitable airline when by their own admission they are over staffed by 20- 30 %

[Thai at Heart]

How can you generate such a huge amount of depreciation on unused planes?

Why aren't they in service or sold off?

http://lmgtfy.com/?q=airline+depreciation+method

Yes, depreciation I understand, but how on earth does it sky rocket so massively, unless of course, with delivery of new planes, you start to absorb the depreciation. However, it states unused planes. Are these new unused planes? If so, that is an absolutely ridiculous situation to be in to mothball brand new planes when you have other ageing planes in the fleet. Of course, that is a simple way of looking at it, but there isn't any explanation I can see that allows me to understand it.

[Bkungbank]

Many local like because they said good in economy but many disaster like this including rice scheme,

I think it dives into red very soon.

[Ricardo]

How can you generate such a huge amount of depreciation on unused planes?

Why aren't they in service or sold off?

http://lmgtfy.com/?q=airline+depreciation+method

Yes, depreciation I understand, but how on earth does it sky rocket so massively, unless of course, with delivery of new planes, you start to absorb the depreciation. However, it states unused planes. Are these new unused planes? If so, that is an absolutely ridiculous situation to be in to mothball brand new planes when you have other ageing planes in the fleet. Of course, that is a simple way of looking at it, but there isn't any explanation I can see that allows me to understand it.

The depreciation on the unused/lightly-used A340s should remain the same as in previous quarters, I'd have thought. So that wouldn't explain an increase. Maybe it's taking a while to bring the new A380s or Thai-Smile A320s into-use, though I can't see why that would be, off-hand.

But perhaps B773s being returned recently to Jet Airways were leased, and so didn't need to be depreciated, while new aircraft now-arriving are owned, therefore need to be depreciated ? I'm not claiming this as certain, just suggesting it as one possibility.

Whatever, the profit/revenue-improvement forecast to take place under the latest boss seems to be elusive, which can't be good news.

[ginjag]

Eva Air 39,000 bht return BKK to LHR. modern, new equipped.

Thai Airways more expensive old Jumbo' neck breaking T.V. monitor.

Same flight times, I booked Eva, and I am a Thai Royal member. Something wrong with the CEO as this has been like this for ages- Mai Pen Rai they obviously not read feedback forms given out on board.

[Bcgardener]

Same issue as previous post. I fly regularly BKK Sydney. Thai still using old 747 aircraft with extremely well worn business class seats. In economy some of the planes don't even have personal TV's. When served a meal in business a ceramic bowl of food usually floating in some sort of gravy is dumped on your table. A world away from Emirates and the other competition. Going to Sydney at the end of the week and have booked Qantas, 9000 baht cheaper in business and I even get my dinner on a proper plate. As a FF with Thai for the last 15 years, my patience has now run out.

Sent from my GT-I9300 using Thaivisa Connect Thailand mobile app

[NeverSure]

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!

But this is Thailand and the Thai way is best. Pssssst. Wanna buy some rice?

[Thai at Heart]

How can you generate such a huge amount of depreciation on unused planes?

Why aren't they in service or sold off?

http://lmgtfy.com/?q=airline+depreciation+method

Yes, depreciation I understand, but how on earth does it sky rocket so massively, unless of course, with delivery of new planes, you start to absorb the depreciation. However, it states unused planes. Are these new unused planes? If so, that is an absolutely ridiculous situation to be in to mothball brand new planes when you have other ageing planes in the fleet. Of course, that is a simple way of looking at it, but there isn't any explanation I can see that allows me to understand it.

The depreciation on the unused/lightly-used A340s should remain the same as in previous quarters, I'd have thought. So that wouldn't explain an increase. Maybe it's taking a while to bring the new A380s or Thai-Smile A320s into-use, though I can't see why that would be, off-hand.

But perhaps B773s being returned recently to Jet Airways were leased, and so didn't need to be depreciated, while new aircraft now-arriving are owned, therefore need to be depreciated ? I'm not claiming this as certain, just suggesting it as one possibility.

Whatever, the profit/revenue-improvement forecast to take place under the latest boss seems to be elusive, which can't be good news.

Exactly

Unused aircraft depreciated that much? Should not be....

[IsaanUSA]

I would imagine that unused aircraft would depreciate at a pretty similar rate as aircraft currently being used. Just because you never use it doesn't mean that you could fly it 50 years from now.

[lomatopo]

According to the Statement of Income,

Depreciation and amortization expenses Q2/2013 - (4,592.13) Q2/2012 - (4,643.30)

was down slightly from Q2/2012. Assume the reference in the article is just that the bulk of this expense (for three A340s and four 737s) is for aircraft which TG chooses not to operate. I think TG is leasing a lot of their new aircraft, which is probably a good thing?

Again, TG essentially exports ~ 70 % of their product (perishable), so will suffer when the baht strengthens.

[boomerangutang]

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 :-)

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

In all sectors of Thai businesses (except maybe the Sangha, am not sure), promotions are based on two things: 'who you know/family connections' and 'payment.' Skills, wisdom, business savvy, thrift, and efficiency have very little to with who advances in the ranks. The richest Thai I know, sits at the head of the table at two Universities. He gets payments every time a teacher wants advancement. He represents just a tiny portion of the miasma a.k.a. Thai promotions. It's a sickness that affects military, police, education, hospitals, government, railroad maintenance, ......the list goes on.

[peterbkk9]

I used to be a ROP Gold card member and enjoyed travelling on THAI.

Not anymore sadly.

Having brand new, nicely decorated A380 alone wont be enough to attract and most importantly retain loyal customers.

It is very Thai that when the business is good, you become lazy, you become a bit arrogant and contemptuous, and stop putting genuine efforts.

Behind their smiles I just have the feeling that hostesses could not care less about the service. Just doing their shift

Tickets are relatively expensive also but I would be ok to continue flying THAI if the service was there.

Also <deleted> with these senior government officials who get these free first class tickets / upgrades?? Get them out!!!

[Bagwan]

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 :-)

He must be a former Cabinet Minister.

[LeeTheCelt]

A Travel agent friend of mine sent Me an email about "an amazing deal" From Thai airways, has to be booked by then end of August, flights are from now to the end of March.

The fair on the Thai airways web site is £871.00 London-BKK

She can do Me a flight for £666.00 but the flight times are not good, to get the flight times that work for me it's £718.00, now I can fly Eva air, get air miles at the flight times that work for me for £577.15.

Now how on earth can you not make a profit when you are almost a 1/3rd more expensive then your rival !

Hands in the cookie jar as per normal in LOS ;-)

[ginjag]

If everything with a Thai flight was average or reasonable then I cannot see that they would have a problem.

Most posters who are from different backgrounds/age/nationalities are saying the same. Many things are wrong, as I mentioned in a previous post, feedback-the company are NOT listening. It has to listen to customers comments if it wants to improve it's service. Thai has NOT done this, thinking too much on it's shareholders and what they want. Thai you have only yourself to blame, surely when you look at the competition they tell you where your going wrong as well.

Your overall pricing is wrong, your aircraft choice for some destinations is not the best, you have NOT as promised refurbed some of the aged planes, and 2 things finally, food and air staff are not up to the standard of your prices.

[Bcgardener]

Just flew BKK to HK business class with emirates. I usually fly Thai for my frequent trips to Australia, using their lounge. The emirates lounge at Bangkok was a real eye opener , good food and wine with plenty of variety. Same again on the very comfortable A380. All at a price 6000 Baht less than Thai.Going to Sydney at the end of the week and for the first time using Qantas, at a price 8000 baht less than Thai. I bet Qantas even have wine in their lounge unlike Thais poor effort. Changes are needed now if they want to keep the profitable business traveller. For me after 15 years I will now take the best deal. They have lost my loyalty and business.

Sent from my GT-P5100 using Thaivisa Connect Thailand mobile app

[i claudius]

Stopped flying Thai years ago ,their prices are just way to high for an ordinary service.

[sumfool]

the day after you take delivery its second hand and thus worth much less, no? so you have to write it off?

[Pimay1]

Stopped flying Thai years ago ,their prices are just way to high for an ordinary service.

Maybe if they would restructure their fares in line with the other regional carriers they they would see an improvement in the bottom line.