THAI chief tenders resignation

[webfact]

THAI chief tenders resignation
The Nation


Ampon

BANGKOK: -- After holding Thai Airways International's chairmanship since May 2009, Ampon Kittiampon has tendered his resignation, effective on March 10.

Succeeding him will be Air Chief Marshal Prajin Juntong, currently first vice chairman of the THAI board. Prajin was just appointed a director on January 24, to replace Chulasingh Vasantasingh.

The changes were announced after the board of directors' meeting yesterday.

In a filing to the Stock Exchange of Thailand, the airline announced that Ampon would remain a member of the board despite his resignation as chairman.

During his nearly five-year tenure, he worked with two presidents - Piyasvasti Amranand, whose term was ended prematurely, and Sorajak Kasemsuvan, who resigned after a year in the position citing health problems.

Before becoming chairman of the board at the national carrier, Ampon had served as deputy permanent secretary of the Ministry of Agriculture and Cooperatives since 2002. He was also the secretary-general of the Office of the National Economic and Social Development Board. He is now the Cabinet secretary-general.

Ampon was initially appointed to a three-year term, which was extended. According to the THAI statement, he reasoned that it did not seem appropriate to stay too long in the top post.

He pointed out that unlike other private companies and state agencies, THAI does not specifically limit its chairman's term. For example, a government permanent secretary takes on a four-year term, and the chairman of the board of the Bank of Thailand is limited to two terms, each of three years. THAI should have something similar in place for its board chairman, he said.

At yesterday's meeting, the board also agreed to reshuffle two top executives. Teerapol Chotichanapibal was promoted as executive vice president (commercial) from his current post as VP for strategy and business development. Chokchai Panyayong was moved to senior executive president for strategy and business development, from senior executive vice president (commercial).

The two appointments will take effect on Monday. However, Chokchai will retain the role of the company's acting president.

The board went ahead with a plan to reorganise the airline's operational structure as proposed by a consultant and the company's management team. The revamp is aimed at increasing working efficiency and controlling operating costs. The board hopes to increase THAI's competitiveness in the changing aviation business.

Last month, THAI's cabin factor was 71.5 per cent, against 78.8 per cent in January 2012. It attributed the drop to China's legislation curbing single-dollar outbound tours and the prolonged political tensions in Thailand, which resulted in travel warnings issued by several countries. The number of foreign passengers on THAI flights dropped to 1.71 million from 1.89 million a year earlier.


-- The Nation 2014-02-22

[PaullyW]

I guess it's hard to find a qualified Thai to run that business in a competitive way. Maybe they should try some foreign talents.

[NongKhaiKid]

I guess it's hard to find a qualified Thai to run that business in a competitive way. Maybe they should try some foreign talents.

Spot On but trying to change the ' jobs for the boys ' mentality will be fully resisted.

[tetleythedog]

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I guess it's hard to find a qualified Thai to run that business in a competitive way. Maybe they should try some foreign talents.

They'd never do that..................they'd lose too much face, but have a successful company maybe!

[JoeThePoster]

Ampon would remain a member of the board despite his resignation as chairman

Gotta keep those perks.

[Suriya4]

No wonder THAI performed badly in the past 5 years.

Now I know why.

[ginjag]

No wonder THAI performed badly in the past 5 years.

Now I know why.

Aint it funny when anyone resigns OR moved, they seem to end up in an inactive post. Thai Airways is not a business it's an institution, run by old school buddies for freebies. Government controlled--doesn't that tell you how it is handled ????

As we all know it is way over priced, apart from a few new aircraft (leased) mainly a dying airline that has near lost all it's past customers, I am guessing that if it wasn't for new unaware Asian customers it would have died long ago.

What a crying shame to see it over 30 years go down hill from a great carrier to this.

They still do attract clients on some routes that have newer aircraft, or where they have a monopoly.

[geriatrickid]

Is Thai airways an employment service for Thailand's airforce?

How is a military Air Chief Marshal qualified to oversee a civilian operation?

Why does the Thai military insist on maintaining an overpowering presence at the airline?

If the union thought management was unresponsive, wait until they start threatening this air marshal.

[SOTIRIOS]

....so much money has passed through the hands of Thai Airways....

...whoever said good management....or profit...were ever the objectives....

[telecom]

In normal circumstances, a huge corporate entity such as a very large national commercial airline, the position would be filled by someone with huge experience in that particular sector.

But then again, when was Thailand 'normal'?

The nepotism and cronyism that exists here is what holds back Thai commerce.

What the F*** does an armed forces leader (who was probably parachuted into his forces position because of nepotism and cronyism in the first place) know anything about running a commercial airline?

What does he know about marketing strategies, competitive initiatives, profit and loss, human resources, flight stock investment policy, customer service or anything to do with a commercial entity????????

[ginjag]

Is Thai airways an employment service for Thailand's airforce?

How is a military Air Chief Marshal qualified to oversee a civilian operation?

Why does the Thai military insist on maintaining an overpowering presence at the airline?

If the union thought management was unresponsive, wait until they start threatening this air marshal.

Whoever controls, Hi So-air force-government- it's loss is ONLY 13 Billion bht, small fry for Yinglucks Admin ?? The next lot in charge here will have to pick up the pieces as The shins will not be around, unless they have a change of fortune to reap for another 4 years.

Nor forgetting we have those 4 --A340s standing doing nothing. waiting to be sold/scrapped----as their price is too high for a thirsty aircraft. BUT a fast and nice safe one to add.

Edited February 22, 2014 by ginjag

[bigbamboo]

Look on the bright side, chaps. One good thing about THAI's poor performance and low demand is that when this happens a business has to make itself more attractive to potential customers and in the case of airlines that usually means more competitive fares.... which is nice.

Except of course this is Thailand.......

[h90]

I guess it's hard to find a qualified Thai to run that business in a competitive way. Maybe they should try some foreign talents.

The qualification needed is to please the politicians.

I know several private companies lead by Thais which are extreme competitive and managed very well. The problem aren't Thai. The problem is the politics.

Austrian Airways and Swiss Airways were managed worse than Thai with many foreign manager .... but also politics messed into business decisions.

[casualbiker]

Is Thai airways an employment service for Thailand's airforce?

How is a military Air Chief Marshal qualified to oversee a civilian operation?

Why does the Thai military insist on maintaining an overpowering presence at the airline?

If the union thought management was unresponsive, wait until they start threatening this air marshal.

GK.. you are a bit Naive. Look at the timing of the Air Marshal joining... This is the thank you for supporting the government.

remember it was the air force that sent troops at the drop of a hat to guard Yinglucks meeting.

Don't always blame things on the Thai military (but it is jobs for the boys)

[GrantSmith]

As we all know it is way over priced, apart from a few new aircraft (leased) mainly a dying airline that has near lost all it's past customers, I am guessing that if it wasn't for new unaware Asian customers it would have died long ago.

What a crying shame to see it over 30 years go down hill from a great carrier to this.

They still do attract clients on some routes that have newer aircraft, or where they have a monopoly.

You do know that they own those 6 brand new A380's right?

Another 20+ purchased brand new aircraft coming online in the next few years...

But I'd hate for the truth to get in the way of a good story though

Sent from my iPad using Thaivisa Connect Thailand mobile app

[ginjag]

As we all know it is way over priced, apart from a few new aircraft (leased) mainly a dying airline that has near lost all it's past customers, I am guessing that if it wasn't for new unaware Asian customers it would have died long ago.

What a crying shame to see it over 30 years go down hill from a great carrier to this.

They still do attract clients on some routes that have newer aircraft, or where they have a monopoly.

You do know that they own those 6 brand new A380's right?

Another 20+ purchased brand new aircraft coming online in the next few years...

But I'd hate for the truth to get in the way of a good story though

Sent from my iPad using Thaivisa Connect Thailand mobile app

With a fleet of 150+ aircraft it would be normal to turn over these numbers to update the various ages of the fleet, nothing WOW about the next few years orders.

I knew from a reliable source that the A380s were not all paid for/leased, I will believe if you show your "they own the A380s" please give info.

I do know a fact that some others including new-ish B777 are leased.

It only makes sense that a near bankrupt airline cannot buy/own all these A380s acquired in the last year or so.

The last report -reported they were leasing aircraft as readies were not in the till.

Your good story- lacks much substance and skirts around points

You see your post is not hardly touching my short post---like loss of most of their loyal European clients------Chinese and other Asians that have saved Thai Airways, and their overpricing.

Would be nice for you to discuss the post, rather than adding your twist to it. Did I get the feeling you were out to defend the company ???

[GrantSmith]

As we all know it is way over priced, apart from a few new aircraft (leased) mainly a dying airline that has near lost all it's past customers, I am guessing that if it wasn't for new unaware Asian customers it would have died long ago.

What a crying shame to see it over 30 years go down hill from a great carrier to this.

They still do attract clients on some routes that have newer aircraft, or where they have a monopoly.

You do know that they own those 6 brand new A380's right?

Another 20+ purchased brand new aircraft coming online in the next few years...

But I'd hate for the truth to get in the way of a good story though

Sent from my iPad using Thaivisa Connect Thailand mobile app

With a fleet of 150+ aircraft it would be normal to turn over these numbers to update the various ages of the fleet, nothing WOW about the next few years orders.

I knew from a reliable source that the A380s were not all paid for/leased, I will believe if you show your "they own the A380s" please give info.

I do know a fact that some others including new-ish B777 are leased.

It only makes sense that a near bankrupt airline cannot buy/own all these A380s acquired in the last year or so.

The last report -reported they were leasing aircraft as readies were not in the till.

Your good story- lacks much substance and skirts around points

You see your post is not hardly touching my short post---like loss of most of their loyal European clients------Chinese and other Asians that have saved Thai Airways, and their overpricing.

Would be nice for you to discuss the post, rather than adding your twist to it. Did I get the feeling you were out to defend the company ???

Pot kettle syndrome Khun ginjag, your story had no evidence and was devoid of facts when it came to fleet renewal, incidentally how many airlines have you run (successful or otherwise)?

To calm your nerves, my sources of information...

http://www.airfleets.net/ageflotte/Thai%20Airways.htm

And...

http://www.airframes.org/fleet/tha

My post wasn't about the defending of the airline or giving my support to the airline, you just let the truth get in the way of a good story...

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[Thai at Heart]

I guess it's hard to find a qualified Thai to run that business in a competitive way. Maybe they should try some foreign talents.

Be gone Satan. Falang no undersatand .

[Thai at Heart]

I guess it's hard to find a qualified Thai to run that business in a competitive way. Maybe they should try some foreign talents.

The qualification needed is to please the politicians.

I know several private companies lead by Thais which are extreme competitive and managed very well. The problem aren't Thai. The problem is the politics.

Austrian Airways and Swiss Airways were managed worse than Thai with many foreign manager .... but also politics messed into business decisions.

Airlines are businesses to run as a profit making exercise. Make the thing political and there is virtually no hope that it will make a profit.

Governments should stick to run Air Forces. That's it when it come s to aviation.

[GrantSmith]

Didn't mention it because it wasn't 1. relevant to the point I was highlighting, which again I will put to you and that you failed to mention the facts because they were getting in the way of your story and 2. Because I agree to an extent that there are a number of factors that they overlook in attempt to be competitive

I've stumped up the facts for back up and you're welcome...

The airline's not dying, nor will the Government allow it to do so, not whilst it's the national/flag carrier.

Got any facts to refute what I said?

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[Ricardo]

As we all know it is way over priced, apart from a few new aircraft (leased) mainly a dying airline that has near lost all it's past customers, I am guessing that if it wasn't for new unaware Asian customers it would have died long ago.

What a crying shame to see it over 30 years go down hill from a great carrier to this.

They still do attract clients on some routes that have newer aircraft, or where they have a monopoly.

You do know that they own those 6 brand new A380's right?

Another 20+ purchased brand new aircraft coming online in the next few years...

But I'd hate for the truth to get in the way of a good story though

Sent from my iPad using Thaivisa Connect Thailand mobile app

FWIW Wikipedia, which may perhaps not be up-to-date, there are some 22 leased-aircraft due, arriving from 2014 onwards.

http://en.wikipedia.org/wiki/Thai_Airways

"Fleet development plans

THAI’s fleet development plans, as of December 2011,^[24] for the period 2010-2022 is in three phases:

• 2012: phase-out of 11 aging aircraft, delivery of 12 government-approved aircraft.
• 2013-2017: phase out of 35 aging aircraft, delivery of 11 aircraft that have already been approved, and acquisition of 33 new aircraft, including 26 next generation wide-bodied aircraft and 7 Airbus A320.
• 2018-2022: phase out of 21 aging aircraft and acquisition of 21 next generation wide-bodied aircraft.

On 13 June 2011, THAI's Board of Directors announced they would purchase 15 aircraft and acquire the remaining 22 on operating leases. The purchased planes include fourteen Boeing 777-300ERs, to be delivered in 2014 and 2015, four Airbus A350-900s (2016 and 2017) and five Airbus A320-200s (2014 and 2015). The leased planes include six 787-8s and two 787-9s from US lessor International Lease Finance (ILFC). The 8 series will be delivered in 2014 and 2015, while the 9 series will be delivered in 2017. In addition, THAI will lease six A350-900s from Aviation Lease and Finance, to be delivered in 2017, and two A350-900s from CIT Aerospace International, which will deliver the aircraft in 2016. The airline will also lease six A320-200s from RBS Aerospace International, to be delivered in 2012 and 2013. All the operating leases have terms of 12 years each.^[25][26] "

Looking at that, it seems there was a board-decision in 2011 to move strategically towards leasing, rather than ownership, with the change-over being for new aircraft arriving 2014-17.

[ginjag]

As we all know it is way over priced, apart from a few new aircraft (leased) mainly a dying airline that has near lost all it's past customers, I am guessing that if it wasn't for new unaware Asian customers it would have died long ago.

What a crying shame to see it over 30 years go down hill from a great carrier to this.

They still do attract clients on some routes that have newer aircraft, or where they have a monopoly.

You do know that they own those 6 brand new A380's right?

Another 20+ purchased brand new aircraft coming online in the next few years...

But I'd hate for the truth to get in the way of a good story though

Sent from my iPad using Thaivisa Connect Thailand mobile app

FWIW Wikipedia, which may perhaps not be up-to-date, there are some 22 leased-aircraft due, arriving from 2014 onwards.

http://en.wikipedia.org/wiki/Thai_Airways

"Fleet development plans

THAI’s fleet development plans, as of December 2011,^[24] for the period 2010-2022 is in three phases:

• 2012: phase-out of 11 aging aircraft, delivery of 12 government-approved aircraft.
• 2013-2017: phase out of 35 aging aircraft, delivery of 11 aircraft that have already been approved, and acquisition of 33 new aircraft, including 26 next generation wide-bodied aircraft and 7 Airbus A320.
• 2018-2022: phase out of 21 aging aircraft and acquisition of 21 next generation wide-bodied aircraft.

On 13 June 2011, THAI's Board of Directors announced they would purchase 15 aircraft and acquire the remaining 22 on operating leases. The purchased planes include fourteen Boeing 777-300ERs, to be delivered in 2014 and 2015, four Airbus A350-900s (2016 and 2017) and five Airbus A320-200s (2014 and 2015). The leased planes include six 787-8s and two 787-9s from US lessor International Lease Finance (ILFC). The 8 series will be delivered in 2014 and 2015, while the 9 series will be delivered in 2017. In addition, THAI will lease six A350-900s from Aviation Lease and Finance, to be delivered in 2017, and two A350-900s from CIT Aerospace International, which will deliver the aircraft in 2016. The airline will also lease six A320-200s from RBS Aerospace International, to be delivered in 2012 and 2013. All the operating leases have terms of 12 years each.^[25][26] "

Looking at that, it seems there was a board-decision in 2011 to move strategically towards leasing, rather than ownership, with the change-over being for new aircraft arriving 2014-17.

Thanks for that info. brilliant.

Although the above has been approved/agreed of forward plan-re-leasing, it does look impressive, 780s and A350s wow but it doesn't always work to the said plan. I stated that Money is short, the airline is falling so unless Thai get quickly an experienced guy up front these plans could well not take place.

As government 53% owned this gives doubts on cash flow to purchase, and business falling off some leasing may have to be delayed.

[GrantSmith]

Didn't mention it because it wasn't 1. relevant to the point I was highlighting, which again I will put to you and that you failed to mention the facts because they were getting in the way of your story and 2. Because I agree to an extent that there are a number of factors that they overlook in attempt to be competitive

I've stumped up the facts for back up and you're welcome...

The airline's not dying, nor will the Government allow it to do so, not whilst it's the national/flag carrier.

Got any facts to refute what I said?

Sent from my iPhone using Thaivisa Connect Thailand mobile app

What's this twaddle about my story ?? Digested your facts about what. nothing to say they were paid for, only what they operate. The airline will die if it doesn't get a new GOOD CEO.

The government with 53% stake here are not in much of a position to do anything about the 13 billion losses.

They need new aircraft especially when you see the ages of some 747s and A330s.

Sum up shall we, I say the airline is sinking and needs good management OR.---??

You think there is little wrong and has money to escape this LAPSE.

Your story does not fit with mine and most posters attitude to Thai airways, look up the farrang customers on TVF who are not happy as most fly now with other carriers.

count the numbers they have that are idle, standing doing nothing. A taxi business has 10 cars stood with no drivers and no bookings, not a lot of good is it. Normally you would sell and invest into new. Thai are not willing to sell at below THEIR market price.-----same the rice---ROT

Do, you really do need to be spoon fed everything?

Thai Airways PLC will not go under. Take a captain cook at the top 10 shareholders, see who the 2 largest companies outside of the MoF are, then take a look at shareholders of those companies. Then go to #4, then #5, hope you can keep up.

It's not rocket science but if you rely on being spoon fed or you were never good at "connect the dots" then it's hardly worth your precious time, best stick to Wikipedia as your definitive source of facts.

Aside from that, where did I say I thought there was nothing wrong with TG?

Sent from my iPad using Thaivisa Connect Thailand mobile app

[Prbkk]

I guess it's hard to find a qualified Thai to run that business in a competitive way. Maybe they should try some foreign talents.

The Irish guy running QANTAS would be a good choice for THAI. Bankruptcy by Christmas guarenteed.

[attento]

In normal circumstances, a huge corporate entity such as a very large national commercial airline, the position would be filled by someone with huge experience in that particular sector.

But then again, when was Thailand 'normal'?

The nepotism and cronyism that exists here is what holds back Thai commerce.

What the F*** does an armed forces leader (who was probably parachuted into his forces position because of nepotism and cronyism in the first place) know anything about running a commercial airline?

What does he know about marketing strategies, competitive initiatives, profit and loss, human resources, flight stock investment policy, customer service or anything to do with a commercial entity????????

The function of a chairman is to control the board of directors, not to understand how every nut and bolt screws together. His job is man-management. Under him, each board director will have his own slice of the company to manage, and that person is the one to understand the fine detail. Maybe, the ex-AirForce guy is a capable team-leader / man-manager. ( Note that i said "Maybe"). In many succesfull companies, the chairman has previously been the Financial Director, and as such would have only a passing understanding of engineeering, or customer service, or HR, etc. But as a "national " carrier, the bottom line is not the most important factor in this organisation. It is more about developing and maintaining prestige. Flying the flag, not waving the Balance sheet. Time will tell if he is up to this challenge.

Edited February 22, 2014 by attento

[Matthew2027]

A pleasure to fly THAI, but to expensive.

Edited February 22, 2014 by Matthew2027

[ginjag]

A pleasure to fly THAI, but to expensive.

WAS a pleasure, luxury and service try Cathay-Eva-New Zealand-Emirates-Etihad,

Try at times the 20 year old jumbo with Thai at double the cost of others. (to the UK) Check the price at Swampy Thai desk. that's why I fly Eva now.??

[Ricardo]

Yes spoon fed because if it's not put out for you on a plate you'll ignore it. The Wikipedia article was a perfect case in point.

You also fail to see what this article is about. It's not the CEO, it's the Chairman who's resigned, 2 completely different positions.

Irrespective of a good CEO in charge or not, TG will not fail. Aside from the fact that it's 51.03% (where you got 54% from I don't know) majority owned by the Ministry of Finance, the other important shareholding companies/individuals with the exception of I think 3 (of the top 10 major shareholders) are all related to the Government is some way, shape or form - hence why I suggested you look past the Wikipedia article as being the epitome of correctness.

4 leased aircraft out of 125 is the equivalent of 2 fifths of 5 eighths of f*** all! And that's currently, not in a few years time.

I'm not sure why you can't understand what I said, I said I agree there are a number of factors with the way the airline is run that doesn't make it competitive. How you translate that into me being in denial and defending TG - only you can explain that.

So at the end of the day, when you figure out the the difference between a Chairman and a President (in a corporate sense), be sure to update this thread.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

Good point, re Chairman vs CEO, I'd wondered about that too.

But "4 leased aircraft out of 125", I believe that before the recently/currently-arriving B777s came, Thai were short-term leasing other B773s from Jet Airways (of India), which have now all been returned ?

However the move towards 12-year-leased aircraft in future, does suggest a strategic decision to change from the Board back in June-2011, which incidentally was just weeks before the change in government, I can't help wondering (in my relative ignorance) whether there was something political going-on there ?

[ginjag]

Yes spoon fed because if it's not put out for you on a plate you'll ignore it. The Wikipedia article was a perfect case in point.

You also fail to see what this article is about. It's not the CEO, it's the Chairman who's resigned, 2 completely different positions.

Irrespective of a good CEO in charge or not, TG will not fail. Aside from the fact that it's 51.03% (where you got 54% from I don't know) majority owned by the Ministry of Finance, the other important shareholding companies/individuals with the exception of I think 3 (of the top 10 major shareholders) are all related to the Government is some way, shape or form - hence why I suggested you look past the Wikipedia article as being the epitome of correctness.

4 leased aircraft out of 125 is the equivalent of 2 fifths of 5 eighths of f*** all! And that's currently, not in a few years time.

I'm not sure why you can't understand what I said, I said I agree there are a number of factors with the way the airline is run that doesn't make it competitive. How you translate that into me being in denial and defending TG - only you can explain that.

So at the end of the day, when you figure out the the difference between a Chairman and a President (in a corporate sense), be sure to update this thread.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

Good point, re Chairman vs CEO, I'd wondered about that too.

But "4 leased aircraft out of 125", I believe that before the recently/currently-arriving B777s came, Thai were short-term leasing other B773s from Jet Airways (of India), which have now all been returned ?

However the move towards 12-year-leased aircraft in future, does suggest a strategic decision to change from the Board back in June-2011, which incidentally was just weeks before the change in government, I can't help wondering (in my relative ignorance) whether there was something political going-on there ?

That leasing number GSmith stated was out of date so much for his old research.

I was sure Thai could not own outright all but 4 of it's aircraft as G Smith stated.

I apologized for my posting the CEO had resigned-when it was the chairman, but the GS brought it up again -being sort of clever.

I appreciate your stats which were helpful, keep smiling ginjag.

[Thai at Heart]

Yes spoon fed because if it's not put out for you on a plate you'll ignore it. The Wikipedia article was a perfect case in point.

You also fail to see what this article is about. It's not the CEO, it's the Chairman who's resigned, 2 completely different positions.

Irrespective of a good CEO in charge or not, TG will not fail. Aside from the fact that it's 51.03% (where you got 54% from I don't know) majority owned by the Ministry of Finance, the other important shareholding companies/individuals with the exception of I think 3 (of the top 10 major shareholders) are all related to the Government is some way, shape or form - hence why I suggested you look past the Wikipedia article as being the epitome of correctness.

4 leased aircraft out of 125 is the equivalent of 2 fifths of 5 eighths of f*** all! And that's currently, not in a few years time.

I'm not sure why you can't understand what I said, I said I agree there are a number of factors with the way the airline is run that doesn't make it competitive. How you translate that into me being in denial and defending TG - only you can explain that.

So at the end of the day, when you figure out the the difference between a Chairman and a President (in a corporate sense), be sure to update this thread.

Sent from my iPhone using Thaivisa Connect Thailand mobile app

Good point, re Chairman vs CEO, I'd wondered about that too.

But "4 leased aircraft out of 125", I believe that before the recently/currently-arriving B777s came, Thai were short-term leasing other B773s from Jet Airways (of India), which have now all been returned ?

However the move towards 12-year-leased aircraft in future, does suggest a strategic decision to change from the Board back in June-2011, which incidentally was just weeks before the change in government, I can't help wondering (in my relative ignorance) whether there was something political going-on there ?

Would leasing versus ownership have something to do with the weakening baht?