THAI to be more flexible, shorten decision-making

[webfact]

THAI to be more flexible, shorten decision-making
Bamrung Amnatcharoenrit
The Nation



BANGKOK: -- Thai Airways International (THAI) this year will be more operationally flexible and shorten its decision-making process in order to keep pace with the fast-changing aviation industry.

The national carrier will also focus more on cutting costs in order to return the company to profitability.

Chokchai Panyayong, THAI senior executive vice president for strategy and business development, and acting president of the airline, said that if everything went to plan, he believed sales would grow by 3-4 per cent from about Bt200 billion last year.

The carrier would also get back into the black, after suffering a loss of Bt12 billion last year, he said.

He acknowledged that THAI's operational culture had not been in line the new business trend, resulting in lost business opportunity.

He cited the decision-making process in regard to closing low-performing routes as an example. Once the company sees such a performance level, it must either stop the route in question or reduce flight frequency very quickly.

However, the carrier has until now been taking too long to make such crucial decisions, resulting in rising losses, said Chokchai.

This year, THAI intends to cut costs to the tune of Bt2 billion via belt-tightening measures in its operations.

Among these measures is adjusting the number of aircrew on each flight to meet the actual number of passengers.

In addition, it will reduce the number of flights by 10 per cent and the overall number of seats by 3-4 per cent in the second quarter, which is the low season, said the acting company chief.

The cost-cutting programme will be operated alongside seeking ways to increase THAI's sales, especially from non-core businesses such as catering and selling on-board duty-free products.

Last month, Chokchai presented THAI's 2014 strategy to the carrier's board, which agreed to change strategy in order to makes its operations - and the decision-making process, in particular - more dynamic.

The airline will have to balance supply and demand in providing its services, while cost reduction and pooling between THAI and its Thai Smile airline are also in focus.


-- The Nation 2014-03-08

[Langsuan Man]

How about just learning how to say NO

Stop all the perks to the elite and make them start paying their fair share

Start hiring employees that are competent instead of connected

Run it like a business and not a fiefdom

[schbang]

is today April 1st? are you kidding me? thai decision-making….sooooo funny

[chainarong]

Just a little info, Thai has advised Airports Australia/Perth that the new 787 will fly in on 1st July, so all Perth fliers will after that date be flying in a Dreamliner, this morning I heard that cracks have been found in the wings of some carriers, that now might not be happening.

Edited March 8, 2014 by chainarong

[leggo]

It will never be successful until it gets it's fare structure right. No one is going to fly with Thai until it gets in line with other carriers in terms of Service,modern planes, and fare structures which are among the most expensive, along with Air France, in the world. Hostesses giving you a nice wai is lovely but doesn't mean that it's the best airline. Thai business in general needs to bring itself up to date with what is going on in the outside world (so do Thai people actually!! )

Sent from my i-mobile IQ 2 using Thaivisa Connect Thailand mobile app

[Deez]

One of the few airlines in the world not making record profits. Partially owned by the government. I wonder where the money goes?

[rhythmworx]

Just a little info, Thai has advised Airports Australia/Perth that the new 787 will fly in on 1st July, so all Perth fliers will after that date be flying in a Dreamliner, this morning I heard that cracks have been found in the wings of some carriers, that now might not be happening.

Don't worry about a few cracks they will paint over them and the TA logo if it lands in an emergency.

Problem solved.

[geriatrickid]

How about just learning how to say NO

Stop all the perks to the elite and make them start paying their fair share

Start hiring employees that are competent instead of connected

Run it like a business and not a fiefdom

It is difficult to stop the perks to the elite. The military dominates the airline, One need only look at the executive leadership to see that. Despite the stories of some politicians riding the planes, there are two groups of people who take advantage of their status to get the upgrades.

The Thai employees union will attack any politician and any executive who dares to try and start a discussion on the staffing. This year it was the PTP that suffered payback. The Democrats once suffered the wrath of the union.

It is a state enterprise and subject to all the waste and meddling that accompanies a state enterprise.

The only solution is through privatisation.

[ginjag]

How about just learning how to say NO

Stop all the perks to the elite and make them start paying their fair share

Start hiring employees that are competent instead of connected

Run it like a business and not a fiefdom

It is difficult to stop the perks to the elite. The military dominates the airline, One need only look at the executive leadership to see that. Despite the stories of some politicians riding the planes, there are two groups of people who take advantage of their status to get the upgrades.

The Thai employees union will attack any politician and any executive who dares to try and start a discussion on the staffing. This year it was the PTP that suffered payback. The Democrats once suffered the wrath of the union.

It is a state enterprise and subject to all the waste and meddling that accompanies a state enterprise.

The only solution is through privatisation.

I have posted many times about privatization, that should solve the problems but there is no excuse in the meantime not to re structure fares.

Thai have got to get customers back flying with them, if they are competing in the comfort zone and service THEN it will have to be FARES, lower fares get the people back on board, you will not get them back by offering better food-or quicker service.

How does most businesses survive by service given, but being competitive is the key.

Note that the bit about Thai Smile, bolstering or helping Thai with their shoulder to lean on.---Thai Smile is in the black ?? must be.

[laurentbkk]

it will be very hard for Thai airways to compete with other airlines , specially Emirates or Qatar , their business class is over the top compare with TG who's biz class is as good as economy on Cathay or SQ a real shame for TG to offer such biz class cabin.

[Chao Lao Beach]

How about just learning how to say NO

Stop all the perks to the elite and make them start paying their fair share

Start hiring employees that are competent instead of connected

Run it like a business and not a fiefdom

but then THAI will lose its Thai-ness

[fredob43]

20 years ago they were quite good then they started to go down hill big time. I stopped using them over 10 years ago much better value else ware.

[spidermike007]

We are NOT competitive. Our prices are higher than other comparable airlines. Should we lower our prices to sell some tickets? No. Decision was made fast and easily.

[PeVee1st]

Among these measures is to adjust the number of aircrew to the pax load, what genius of airline ops.thought that one up.

What so 50% pax load, then only 1 pilot required, unfortunately other factors have to be considered, such as regulations requiring at least 2 pilots and that all exit doors must be manned by crew in an emergency.

If you (could) under crew on 1 sector, where do you get the crew for the next full sector, from the cargo area???

No wonder the airline is going down the gurgler with management like Thai have, everyone knows that Thai has to stop being the private transport of the rich and make the hard decisions to regain profitability.

Unfortunately, we all know this will never happen.

Sent from my GT-P7500 using Thaivisa Connect Thailand mobile

[onlycw]

THAI needs to be customer centric. But that's something government owned enterprises can't or won't do!

Take an English Camp where some officials waffle on for 90 minutes. Whom are they addressing? They don't care that the 12 year olds don'e listen (or start fainting). They came to deliver long-winded speeches and that's what they are gonna do.

Some schools have 5 or 6 technicians, costing more than a million Baht. But the wifi sucks, even though ToT has an office at the school as well.

They need foreign managers - like SONY or NISSAN. But that's never gonna happen...

Shareholders should be shorting the stock.

[khrab]

Let TAT run Thai Airways and you will see phantastic figures very soon.

[geriatrickid]

Among these measures is to adjust the number of aircrew to the pax load, what genius of airline ops.thought that one up.

What so 50% pax load, then only 1 pilot required, unfortunately other factors have to be considered, such as regulations requiring at least 2 pilots and that all exit doors must be manned by crew in an emergency.

If you (could) under crew on 1 sector, where do you get the crew for the next full sector, from the cargo area???

No wonder the airline is going down the gurgler with management like Thai have, everyone knows that Thai has to stop being the private transport of the rich and make the hard decisions to regain profitability.

Unfortunately, we all know this will never happen.

Sent from my GT-P7500 using Thaivisa Connect Thailand mobile

The comments made about aircrew were in respect to the FAs. The flights are often over staffed. For example, I was in F from Rome last year. 6 pax and 3 FAs. This wasn't necessary. 1 or 2 would have sufficed. I was in J to HKG in January. 4 FAs in my cabin when 2 would have sufficed. TG need not reduce its FAs to the levels of UA or AC, but it could easily drop 2-3 FAs with minimal impact upon cabin service, particularly since the FAs disappear after meal service. The flight deck staffing would remain unchanged as the regulations in place for the number of pilots including relief pilots is not based upon the number of pax carried. It is governed by the route and type of equipment flown.

TG may eventually go the route of Swiss and Air Canada with the introduction of reduced seating space, and will most likely move towards the United and Air Canada high density seating model on its busier routes. This would allow a reduction in fares. Thai Airways is one of the most generous in space allowance for its economy pax. A reduction in space means the plane can carry more pax and maximize the potential revenue.

[tomyummer]

Sure. Just cut out the pilots and co-pilots and source them from the likes of Aeroflot and Lao Airlines. Can save some money there.

Too bad TG doesn't get bought out by SG or Cathay.

[khrab]

Among these measures is to adjust the number of aircrew to the pax load, what genius of airline ops.thought that one up.

What so 50% pax load, then only 1 pilot required, unfortunately other factors have to be considered, such as regulations requiring at least 2 pilots and that all exit doors must be manned by crew in an emergency.

If you (could) under crew on 1 sector, where do you get the crew for the next full sector, from the cargo area???

No wonder the airline is going down the gurgler with management like Thai have, everyone knows that Thai has to stop being the private transport of the rich and make the hard decisions to regain profitability.

Unfortunately, we all know this will never happen.

Sent from my GT-P7500 using Thaivisa Connect Thailand mobile

The comments made about aircrew were in respect to the FAs. The flights are often over staffed. For example, I was in F from Rome last year. 6 pax and 3 FAs. This wasn't necessary. 1 or 2 would have sufficed. I was in J to HKG in January. 4 FAs in my cabin when 2 would have sufficed. TG need not reduce its FAs to the levels of UA or AC, but it could easily drop 2-3 FAs with minimal impact upon cabin service, particularly since the FAs disappear after meal service. The flight deck staffing would remain unchanged as the regulations in place for the number of pilots including relief pilots is not based upon the number of pax carried. It is governed by the route and type of equipment flown.

TG may eventually go the route of Swiss and Air Canada with the introduction of reduced seating space, and will most likely move towards the United and Air Canada high density seating model on its busier routes. This would allow a reduction in fares. Thai Airways is one of the most generous in space allowance for its economy pax. A reduction in space means the plane can carry more pax and maximize the potential revenue.

Even their cockpits are overcrowded. Normal airlines have a crew of 3 on the 747, TG has 4!

Well, and the FAs are too busy with themselves. Rush the service (in any class), close the blinds, "everybody sleep NOW" (even on daylight flights) so we (the FAs) have some quality time with ourselves only and are not disturbed by annoying passangers.

The regulation is that there must be one FA for every 50 seats , not passenger, on the plane. When there are less FAs, there is less to talk. At the end the service will improve.