Citing protests, Thai Airways lowers revenue goals

[webfact]

Citing Protests, Thai Airways Lowers Revenue Goals
By Khaosod Online


Hundreds of Thai Airways staff during their brief rally against government of PM Yingluck Shinawatra last month

BANGKOK: -- Thai Airways International is planning to revise its annual revenue goal due to the political crisis that has greatly affected influx of air travels into Thailand, said its president, Mr. Sorajak Kasemsuwan.

According to THAI President, its routes from China, Europe, Australia and Hong Kong were hugely affected after many nations issued warnings for their citizens regarding their safety in Thailand.

“I must admit that we have been affected a lot by the current political situation, especially our routes from China, Europe, Australia and Hong Kong, which has issued a ′red′ Thailand travel warning to its citizens” said Mr. Sorajak.

He added, “Therefore, we are not yet able to reveal the annual revenue as the company is revising the profit on Friday.”

In its Q3 revenue, the state-owned Thai Airways has lost 6.194 billion baht, resulting in a total loss of 6.35 billion baht in its first 9 months performance. In contrast, last year it gained 1.744 billion baht in profit, and 5.436 billion baht in the first 9 months.

Despite the company’s diminishing performance, Mr. Sorajak is still optimistic about the company’s 2014 Q1 revenue as he believes the clashes between the government and its opposition would end soon.

The THAI President also declared that he had instructed his officers to protect its customers information, after several leaks of flight information concerning members of the Shinawatra family.

In one incident, anti-government protesters, who are self-sworn enemies of former PM Thaksin Shinawatra and his sister, PM Yingluck Shinawatra, have widely shared the leaked flight data of Mr. Thaksin′s daughters, revealing that she has brought many suitcases with her to London.

"Passengers’ information must be secured in accordance with the airline’s international standard," said Mr. Sorajak.

Source: http://www.khaosod.co.th/en/view_newsonline.php?newsid=TVRNNE5qRTFOamMyTkE9PQ==

-- KHAOSOD English 2013-12-05

[Thai at Heart]

Next they will blame the lack of rice exports on the riots too.

Didn't TAT state that they expect no reduction in tourists only 2 days ago.

[PaullyW]

Wow, if that's not a blow to TAT, I don't know what is. I mean, your flag carrier says one thing, and your tourism ministry says another entirely. Don't the senior execs as these places talk sometimes, go for golf or at least read eachother's press releases?

[trogers]

Wow, if that's not a blow to TAT, I don't know what is. I mean, your flag carrier says one thing, and your tourism ministry says another entirely. Don't the senior execs as these places talk sometimes, go for golf or at least read eachother's press releases?

Both press releases can be true - foreigners choose to come to Thailand on other air carriers rather than Thai. Why?

[NongKhaiKid]

Wow, if that's not a blow to TAT, I don't know what is. I mean, your flag carrier says one thing, and your tourism ministry says another entirely. Don't the senior execs as these places talk sometimes, go for golf or at least read eachother's press releases?

Lowered goals ? Mass suicides at TAT anytime.

[negreanu]

Nothing to do with:

1. Old airplanes with J class on some worse than competitors premium economy products.

2. Over pricing their tickets compare to competitors

3. Inflight catering and service deteriorating on a monthly basis.

4. Air award redemption a pain and difficult to secure.

5. Their BKK hub lounges as the national carrier worse than their competitors in the same airport. Example they serve Chilean wine which is 500thb a bottle in villa....

6. No more fast track immigration on arrival for Premium Lane

7. F and J usually crowded by free VIP giveaway tickets and crew upgrading their buddies far too much..

8. Deteriorating on time performance.

I could go on......

Yeh the protests that is what is causing it......

Edited December 5, 2013 by negreanu

[englishoak]

Or myabe its just that Thai airways are overpriced, out of date planes and a generally sub standard service.... naaaa blame the protests instead thats far more believable.

[bangon04]

Wow, if that's not a blow to TAT, I don't know what is. I mean, your flag carrier says one thing, and your tourism ministry says another entirely. Don't the senior execs as these places talk sometimes, go for golf or at least read eachother's press releases?

Both press releases can be true - foreigners choose to come to Thailand on other air carriers rather than Thai. Why?

Well if the tourists are still coming as the TAT insists, then they must be deliberately choosing to use other airlines than THAI:

"According to THAI President, its routes from China, Europe, Australia and Hong Kong were hugely affected after many nations issued warnings for their citizens regarding their safety in Thailand."

so it sounds like "any way but the THAI way" is the new slogan.....

[Valentine]

Any old excuse will do to cover up it's sub standard service, overpriced, cronyism, & way too many free business & 1st class tickets.

[user82374298374]

Nothing to do with:

6. No more fast track immigration on arrival for Premium Lane

Most of what you say is mere opinion, but this statement is completely and utterly false. I fly business-class on TG all the time, and *every single time* I re-enter Thailand, I use my business-class boarding pass to go through Premium Lane fast-track immigration.

I hold no brief for Thai Airways, but I fly more than most of the people posting in this forum, and I have no complaints. They're usually on-time, the in-flight service is fine, and I always ignore the stupid 'in-flight entertainment systems' because I have books, movies, and television programs on my phone and tablet.

[NeverSure]

Load all of the protesters on planes. Sorted.

[SjaakNL2013]

I love the way Thai Airways can see in the future because their last annual report was already down with 37% out operational activities.

But by Thai Airways the only up going line is the trend that all go down. Passengers, service and even airplanes come down. Those last ones are then quickly repaint.

The life slogan form Thai Airways is taken from Status Quo.......Down, Down , Down

[Bluetiger]

Thai Airways has been suffering miserably for years on their long haul routes. Coupled with the ever increasing numbers of LCC's regionally, they'll be hard pressed to produce a noteworthy profit come next Q.

Solution: Try again to eat up more shares of Nok Air (49% & holding), Launch Thai Smile < Good move actually! Better yet... Explore the idea of reducing those FAT CAT salaries/bonuses in house. Free up some dough to secure your position long term and more importantly, your younger employees future. Just a thought

[wileycoyote]

Nothing to do with:

6. No more fast track immigration on arrival for Premium Lane

Most of what you say is mere opinion, but this statement is completely and utterly false. I fly business-class on TG all the time, and *every single time* I re-enter Thailand, I use my business-class boarding pass to go through Premium Lane fast-track immigration.

I hold no brief for Thai Airways, but I fly more than most of the people posting in this forum, and I have no complaints. They're usually on-time, the in-flight service is fine, and I always ignore the stupid 'in-flight entertainment systems' because I have books, movies, and television programs on my phone and tablet.

Fair comment + Tallies with my own thoughts

[JoeThePoster]

There was a time when Singapore Airlines woulda a bought in a stake. But after the AIS - Temasek brouhaha, don't expect such sweet deals anymore.

[negreanu]

"Most of what you say is mere opinion, but this statement is completely and utterly false. I fly business-class on TG all the time, and *every single time* I re-enter Thailand, I use my business-class boarding pass to go through Premium Lane fast-track immigration."

I am doing 6+ a month on international J on TG (because sometimes schedule wise I am forced to). And quite frankly if you rate TG J that well then your experience of the other carriers must be extremely limited.... Try SQ / CX / EK / QR products for 6 months then go back to TG. Difference is pure as silk.....

Secondly you have been lucky with your boarding card. See the little immigration desk at the right of premium lane section go ask the immigration official if you are allowed to use the premium lane with your j class boarding pass stub. No is the answer. Go ask TG customer service if you can use the premium lane same reply.

I have tried the premium lane scam as well and been knocked back by the official on several occasions depends who you get at the desk. HOWEVER The fact is it is no longer a OFFICIAL part of TG business class. However they haven't advertised the deterioration in product - as they THAI never do. They simply just stopped it without apology or reason or reduction in ticket price.

TG officially stopped issuing the fast track immigration cards about 18 months ago. You SHOULD have the yellow premium lane card these days...J class or not.

So what we're you saying "utterly false"..... Yeh mate your right...

Edited December 5, 2013 by negreanu

[Thai at Heart]

There was a time when Singapore Airlines woulda a bought in a stake. But after the AIS - Temasek brouhaha, don't expect such sweet deals anymore.

There was a moment after 97 when the government considered selling it off and I think lufthansa looked at it. The due diligence raised quite a few eyebrows about the benefits that befit a board member FOR LIFE at the time.

It went something along the lines of 10 first class tickets any where in the world complimentary and 20 Business class tickets for family yearly. A corporate credit card with varying levels of discretionary spending, of which they found one had been used to pay for a wedding at the Oriental and another had bought about half of Louis Vuitton Asia's entire stock of handbags. Individual transations had values of 900k, 700k for this type of thing.

Now it may have been cleaned up a bit, but realise, this at the time was for anyone who had sat on the board, for a day, FOREVER. So, no self respecting business is going to be interested in taking on this type of largesse, and they definitely aren't interested in giving it up.

[steelepulse]

This is the excuse de jour. Didn't last year they were planning on big profits etc. with fudged numbers, only to later come out and say there was a loss. Every year they say it could of, should of been a profitable year, but alas, it wasn't a profitable year due to (insert excuse here)...............

[belg]

it is down now

so next year they can clean a big increase and bonus for everybody

for a job well done

[Thai at Heart]

it is down now

so next year they can clean a big increase and bonus for everybody

for a job well done

If they keep borrowing like this without the requisite growth in GDP, they might one day have to sell of the family jewels to pay for it all.

And then there won't any bonuses for anyone for a very long time.

[Robby nz]

Wasn't it only a few days ago they were calling for the board chairmans head because of big losses ?

Something like 6 billion for the year if I remember correctly.

And something about hoping a new low cost branch would pull them out of the poo?

[Prbkk]

J and Premium Lane....true that Thai no longer issues premium lane on-arrival passes ( on departure it's automatic with boarding pass) or even mentions premium lane inflight. Also true that you can show your Thai boarding card on arrival in premium lane ( I have never been turned away, but am pretty convincing with the " this poor old bugger could drop dead any minute" look). In contrast flying Emirates J last week, everything so smooth, great lounge, cheaper fare, better inflight, certainty of premium lane...I can't find a compelling reason, indeed ANY reason, to persist with Thai. Nothing against them at all, but they are just not competitive. If I want a cheap regional, plenty of choice there as well.

[GentlemanJim]

“I must admit that we have been affected a lot by the current political situation, especially our routes from China, Europe, Australia and Hong Kong, which has issued a ′red′ Thailand travel warning to its citizens” said Mr. Sorajak.

He added, “Therefore, we are not yet able to reveal the annual revenue as the company is revising the profit on Friday.”

How convenient, and from a corporate sense sounds mighty dodgy, if not illegal. So travel warnings in the last two weeks are causing them to with hold revenue information and recalculate profits?????

[NeverSure]

[SheungWan]

This year I flew with Thai Air BKK-HKG-BKK on the new A380 service in economy and it was dire.

[UncleJ]

I didn't read in the Thai news about the audit and the missing 200 million baht.

[allucero]

From America, Thai Airlines is the most expensive airlines on flights to Thailand... Most Thai's in America use this airline until they find the same flight is $400-$600 cheaper and travels the same route and same times...