Thai Airways To Pick New Boss Tuesday

[george]

Thai Airways to pick new boss Tuesday

BANGKOK: -- Flag carrier Thai Airways International is set to pick a new president on Tuesday amid pressure from soaring global oil prices and cutthroat competition from lowbudget airlines.

Thai Airways has been hunting for the new chief since August last year when it suspended Kanok Abhiradee after incurring its worstever quarterly loss totalling Bt4.78 billion in the three months to June in 2005.

The company said it would pick the new president from four internal candidates at Tuesday's board meeting.

"Tuesday's meeting is the last meeting for selecting the new president," said Thai Airways spokeswoman Sompradtana Prakobsantisuk, but warned the board may not announce its decision immediately.

Analysts said the new boss must quickly tackle pressing problems of high oil prices and intense competition from lowcost rivals in the regional market.

"Oil is the biggest challenge for the company. About 30 to 40 per cent of the company's operational costs is oil," said Sukbir Khanijoh, an economist at Trinity Securities.

On Monday, oil prices hit US$70 (Bt2,654) a barrel in Asian trade amid concerns over tight US gasoline stocks and continued fears the United States could launch military strikes against Iran, the world's fourthbiggest oil producer.

Soaring fuel prices slashed Thai Airways' net profit by 33.36 per cent to Bt3.81 billion baht in the three months to December.

Apart from oil, Choosak Ratanachaichan, an economist at Kasikorn Research Center, said Thai Airways was facing tough competition from lowbudget airlines in the Southeast Asian market.

"Like any other airline, severe competition from lowcost carriers has affected Thai Airways. They are eating up the market share of traditional airlines," Choosak said.

-- AFP 2006-04-17