THAI to tackle business structure next year

[webfact]

THAI to tackle business structure next year
NONGNAPAS MAIPANIT
THE NATION

BANGKOK: -- THAI AIRWAYS INTERNATIONAL expects to launch a business rehabilitation plan next year aimed at ensuring sustainable growth in profitability.

The plan, which will include the business direction for 2014 and 2015, will be proposed to the company's board of directors next month. Under the plan, the company's organisational structure will be revamped with the objective to increase revenues and reduce expenditures. However, any changes under the plan are to have no effect on the safety or the quality of the airline's service.

The national carrier believes the current political rallies could adversely affect fourth-quarter operations despite the final quarter of the year being the peak tourism season, especially after 16 foreign countries have issued travel advisories to warn their citizens about possible risk to their safety should the conflicts escalate.

THAI president Sorajak Kasemsuvan said after yesterday's board meeting that the company had made a second revision of its anticipated net profit for this year to about Bt2 billion. The first revision lowered the forecast from Bt6 billion to about Bt4 billion.

THAI posted Bt6.2 billion in net profit last year.

He said the lower projected profit was the result of the increase in passengers, and consequent revenue contribution, failing to be in line with the surge in the number of seats from this year's purchase of 17 new aircraft. The airline was also hit by higher operational costs, together withh foreign-exchange losses.

"We are able to identify that this year's performance will see lower profit [than previously projected]. We acknowledge that we have been affected by many risk factors that are outside our control.

"Our internal routes have been affected by the political demonstrations, which caused the number of domestic passengers to drop by 2-3 per cent [so far] in November.

"For the overseas routes, we have been affected by the zero-dollar tour scam, which will see a short-term effect with Chinese tourist arrivals probably declining. The Indian market is now facing internal economic problems, which will result in their outbound travel declining significantly. The European market is seeing a slight decline in ticket bookings during this travel season. Meanwhile, the Japanese market is growing significantly," Sorajak said.


-- The Nation 2013-11-14

[JoeThePoster]

We acknowledge that we have been affected by many risk factors that are outside our control.

Phew, what a relief to hear that. Here I was thinking it was because of fat cats and mismanagement.

[PaullyW]

No more free flights for VIPs?

Edited November 13, 2013 by PaullyW

[davehowden]

“He said the lower projected profit was the result of the increase in passengers, and consequent revenue contribution, failing to be in line with the surge in the number of seats from this year's purchase of 17 new aircraft”

Maybe its the passenger numbers that should drive the planned seat availability and not the other way around, where do they find these numbheads, from the London School of Economics apparently.

[Ricardo]

"No need to try to fix things this year, we'll talk about trying again next year, if we don't have anything better to do."

But surely most businesses find profits rising, as they get more customers, can someone perhaps have mis-priced their tickets or failed to control costs, or perhaps the new subsidiary isn't such a good idea after all ?

And the surge in the number of seats is also a problem, perhaps TG might sell-off their older planes, as well as continuing to return their leased-in jets, or is that rocket-science to attempt to control capacity ?

[davehowden]

"Singapore Airlines profits jump almost 80%"

Mmmmmm

[laurentbkk]

For the overseas routes, we have been affected by the zero-dollar tour scam, which will see a short-term effect with Chinese tourist arrivals probably declining. The Indian market is now facing internal economic problems, which will result in their outbound travel declining significantly. The European market is seeing a slight decline in ticket bookings during this travel season. Meanwhile, the Japanese market is growing significantly," Sorajak said.

Well , not only ..... the very obsolete business class for many international route , the very bad service , not to mention the very lousy food , their biz class is equal to a good economy class on SQ or Cathay. I will not talk about the flight attendant, that will be too long .... UPGRADE everything to be in compliance with other airlines.

[Minpin]

"No need to try to fix things this year, we'll talk about trying again next year, if we don't have anything better to do."

But surely most businesses find profits rising, as they get more customers, can someone perhaps have mis-priced their tickets or failed to control costs, or perhaps the new subsidiary isn't such a good idea after all ?

And the surge in the number of seats is also a problem, perhaps TG might sell-off their older planes, as well as continuing to return their leased-in jets, or is that rocket-science to attempt to control capacity ?

Did they ever sell the A340 to the Saudis?

[Langsuan Man]

Why is everything that is done in Thailand........next year...for once can't they just do something, anything, now !

[webfact]

Grim outlook for Thai flag carrier’s 2013 profit
By English News

BANGKOK, Nov 14 – Thai Airways International (THAI), Thailand’s national flag carrier, has reduced this year’s revenue projection from Bt6 billion to Bt2 billion, according to THAI President Sorajak Kasemsuvan.

He said the original revenue target of Bt6 billion was earlier lowered to Bt4 billion and the latest projection of Bt2 billion was reported to the company’s board of directors.

He put the blame on the global economic slowdown which has severely impacted China and India – THAI’s major markets, adding that the current political turmoil in the country has reduced the number of domestic passengers by 2-3 per cent.

He said the management will closely monitor the company’s performance and boost its marketing strategy in Q4 while expenditures must be slashed.

Management will submit a business turnaround plan for 2014 to the airline's board of directors next month to deal with tougher competition in the airline industry and to respond to passenger demands, he said.

In the monthly meeting yesterday, THAI directors were informed that the cabin factor in October was 71.6 per cent – lower than the same period last year when the cabin factor was reported at 73.5 per cent.

Passengers increased from 1.71 million people in October last year to 1.77 million people last month, Mr Sorajak reported. (MCOT online news)


-- TNA 2013-11-14

[belg]

let me guess

they will raise their prices AGAIN

[Gulfsailor]

let me guess

they will raise their prices AGAIN

That was the first thing that popped in my head as well...

And I assume this new 2 billion baht figure is net profit, not revenue as stated....