Thai Airways – a parallel with Malaysia Airlines

[webfact]

Thai Airways – a parallel with Malaysia Airlines
BY JAMES LEE

BANGKOK, Thailand - While the Malaysian government seems now ready to step in to save Malaysia national carrier Malaysia Airlines, which survival is at stake, a similar –but more discreet scenario- is happening at another sick airline in Southeast Asia, Thai Airways International.

It was no surprise when Thailand Military Junta indicated a few weeks after seizing power that they would reign into the mess in which Thai Airways International has been plunged for at least one or two decades. Thai Airways has seen in the last decade six presidents and five different chairman, all cronies.

Only Piyasvasti Amnarand, a former Energy Minister, was the unique competent head of the airline over the last decade. Following the resignation in early December of Sorajak Kasemsuvan, Thai Airways had only acting President. For now, Military men have put another military at the head of Thai Airways –going back to an old tradition.

The last Board of Directors Meeting, held a few days ago, was the first public appearance of Air Chief Marshal Prajin Juntong, THAI’s Chairman of the Board of Directors.

Like for Malaysia Airlines, Thailand national carrier is confronted with increased competition on regional and increasingly intercontinental routes. But the carrier is also confronted with tensions within its own organization.

Full story: http://www.eturbonews.com/48247/thai-airways-parallel-malaysia-airlines

-- eTN 2014-07-22

[Mango Bob]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

[Spoonman]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

But a Farang cannot do a job a Thai can do.

wait................. WHAT !!

[laolover88]

They just need a business model that allows them to compete. International fares are hugely non-competitive. Do you not suspect that they could reduce the workforce by a very significant%

[lostsoul49]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

First thing I thought myself, and not the first time either.

How bizarre that one of the most popular tourism countries in the world's national airline can not make a profit.

That's a bit like a guy with a full water truck of nice chilled Evian in the middle of the Sahara dessert can't make money from a captive audience of 1000 multi-billionaires dying of thirst.

[Zeegator]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

Perhaps they should take you on as a consultant, you seem to know the answer to it's problems and how easy they are to solve.

[jonclark]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

Simply considering that idea would be a public acknowledgment of Thailands failure - never gonna happen.

[Snig27]

I like Thai once I'm on the aircraft but dealing with them before the flight is an archaic nightmare. Communications skills are zero, waiting times in the office and on the phones are interminable, their website won't load half the time, you get shuffled for person to person when you have a question and most are clueless - plus they are no longer financially competitive. Their prices can be insanely high at times. I do a lot of international long haul travel, maybe 30-40 flights a year, and I avoid them where possible. Whilst I mostly travel economy, their business class is shocking too - a selection of bad wines and dreadful food.

I found out too, recently, that they are no longer linked to my credit card for points - I was told by the card people they were a nightmare to deal with.

Still, there are worse: Air New Zealand and Qantas both have a much lower ranking to me. In both cases their economy is so small I can't sit straight and their higher classes are grossly overpriced. Good wine though.

Edited July 22, 2014 by Snig27

[trainman34014]

I like Thai once I'm on the aircraft but dealing with them before the flight is an archaic nightmare. Communications skills are zero, waiting times in the office and on the phones are interminable, their website won't load half the time, you get shuffled for person to person when you have a question and most are clueless - plus they are no longer financially competitive. Their prices can be insanely high at times. I do a lot of international long haul travel, maybe 30-40 flights a year, and I avoid them where possible. Whilst I mostly travel economy, their business class is shocking too - a selection of bad wines and dreadful food.

I found out too, recently, that they are no longer linked to my credit card for points - I was told by the card people they were a nightmare to deal with.

You sum it all up very well. Quite how they are ever going to resolve these problems when they insist on 'Thainess' running the company instead of real business brains i really do not know.

[ratcatcher]

I like Thai once I'm on the aircraft but dealing with them before the flight is an archaic nightmare. Communications skills are zero, waiting times in the office and on the phones are interminable, their website won't load half the time, you get shuffled for person to person when you have a question and most are clueless - plus they are no longer financially competitive. Their prices can be insanely high at times. I do a lot of international long haul travel, maybe 30-40 flights a year, and I avoid them where possible. Whilst I mostly travel economy, their business class is shocking too - a selection of bad wines and dreadful food.

I found out too, recently, that they are no longer linked to my credit card for points - I was told by the card people they were a nightmare to deal with.

You sum it all up very well. Quite how they are ever going to resolve these problems when they insist on 'Thainess' running the company instead of real business brains i really do not know.

Look who runs Cathay Pacific Airlines. Not Chinese.

[WinnieTheKhwai]

I'm happy they ended the tradition of cronyism in appointing a new president by appointing .. . oh, wait.

[ezzra]

Thai airways is a prize bull, given to the favorite crony of who ever in in power, the day they

will stop that and bring is someone who actually knows about running and airline that will be

the day that things will turn around...

[asdecas]

I like Thai once I'm on the aircraft but dealing with them before the flight is an archaic nightmare. Communications skills are zero, waiting times in the office and on the phones are interminable, their website won't load half the time, you get shuffled for person to person when you have a question and most are clueless - plus they are no longer financially competitive. Their prices can be insanely high at times. I do a lot of international long haul travel, maybe 30-40 flights a year, and I avoid them where possible. Whilst I mostly travel economy, their business class is shocking too - a selection of bad wines and dreadful food.

I found out too, recently, that they are no longer linked to my credit card for points - I was told by the card people they were a nightmare to deal with.

Still, there are worse: Air New Zealand and Qantas both have a much lower ranking to me. In both cases their economy is so small I can't sit straight and their higher classes are grossly overpriced. Good wine though.

It's a pity because there was a time twenty or thirty years ago when Thai was up there with the best, regularly voted best cabin service etc.

There is no single factor that has led to the demise, but it's easy to point to some obvious causes - the nepotism, the arrogant assumption of superiority, poor senior management, uncompetitive fare structures in a changed aviation environment, to mention but a few.

The world has changed in the past few decades but Thai has not moved with the times. It will take a clean sweep from the very top to clear out the dead wood and knock the airline into shape again.

[kamahele]

I think they need an experienced European airline executive to run this company. While I'm an American, the on board service has been degraded so much in America that most of our airline leaders are just cost cutters without thought to passenger comfort. I suspect there is at least one German out there with the experience to turn this airline around while improving their service too.

[Thanet]

Putting a big cheese from the Air Force in charge, who has zero experience of running a large corporation (but who is the flavour of the month), will definitely help to improve the situation.

[gchurch259]

I like Thai once I'm on the aircraft but dealing with them before the flight is an archaic nightmare. Communications skills are zero, waiting times in the office and on the phones are interminable, their website won't load half the time, you get shuffled for person to person when you have a question and most are clueless - plus they are no longer financially competitive. Their prices can be insanely high at times. I do a lot of international long haul travel, maybe 30-40 flights a year, and I avoid them where possible. Whilst I mostly travel economy, their business class is shocking too - a selection of bad wines and dreadful food.

I found out too, recently, that they are no longer linked to my credit card for points - I was told by the card people they were a nightmare to deal with.

You sum it all up very well. Quite how they are ever going to resolve these problems when they insist on 'Thainess' running the company instead of real business brains i really do not know.

Look who runs Cathay Pacific Airlines. Not Chinese.

Cathay Pacific is not the Flag Carrier of China and is only the DeFacto Flag Carrier of Hong Kong. They are a part of the Swire Group, so they are under the same pressures as Thai. They have the benefit of English development. I am not English, but USA with 42 years airline experience.

[KOZMO]

I used to fly Thai Airways even if it was $300-400 MORE BECAUSE THEY HAD THE ONLY DIRECT ROUTE TO BANGKOK OUT OF LA, 7 DAYS A WEEK.

[JohnThailandJohn]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

First thing I thought myself, and not the first time either.

How bizarre that one of the most popular tourism countries in the world's national airline can not make a profit.

That's a bit like a guy with a full water truck of nice chilled Evian in the middle of the Sahara dessert can't make money from a captive audience of 1000 multi-billionaires dying of thirst.

Up until 2008, Thai Airways was profitable for 40 straight years which is fairly unheard of in the Airline industry. 2012 I believe was the 2nd year in 51 years they lost money. Generally Airlines are not a wise risk for investors and few bring much returns to investors. The Asian market has become even more of a challenge due to a number of reasons including people choosing to fly with the budget airlines. I believe Singapore Airline reported about a 60% loss in profits in Q4 and 5% overall for the year. Big players such as American Airlines continues to run Asian routes even though they are unprofitable with the hope of future profits. Competition and margines are very tight in the highly regulated industry where so many unforseen and uncontrollable events can have huge impacts on losses.

Not saying Thai doesn't need better management, like MANY western companies but it is just beyond foolish to say they need to go outside the country for leadership.

[gamini]

I like Thai once I'm on the aircraft but dealing with them before the flight is an archaic nightmare. Communications skills are zero, waiting times in the office and on the phones are interminable, their website won't load half the time, you get shuffled for person to person when you have a question and most are clueless - plus they are no longer financially competitive. Their prices can be insanely high at times. I do a lot of international long haul travel, maybe 30-40 flights a year, and I avoid them where possible. Whilst I mostly travel economy, their business class is shocking too - a selection of bad wines and dreadful food.

I found out too, recently, that they are no longer linked to my credit card for points - I was told by the card people they were a nightmare to deal with.

You sum it all up very well. Quite how they are ever going to resolve these problems when they insist on 'Thainess' running the company instead of real business brains i really do not know.

Look who runs Cathay Pacific Airlines. Not Chinese.

I agree Cathay is well run. Probably not the same kind of Brits than run BA whose short haul Europen flights are dreadful with poor service and food.

[SOTIRIOS]

...........better add AOT......

[JohnThailandJohn]

I think they need an experienced European airline executive to run this company. While I'm an American, the on board service has been degraded so much in America that most of our airline leaders are just cost cutters without thought to passenger comfort. I suspect there is at least one German out there with the experience to turn this airline around while improving their service too.

European airlines’ financial results in 2012; Net profit of biggest 13 down 72% for the year

http://centreforaviation.com/analysis/european-airlines-financial-results-in-2012-net-profit-of-biggest-13-down-72-for-the-year-102456

[chotthee]

TG should attempt a take over of MH.

This will make THAI people happy.

[monkeycountry]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

First thing I thought myself, and not the first time either.

How bizarre that one of the most popular tourism countries in the world's national airline can not make a profit.

That's a bit like a guy with a full water truck of nice chilled Evian in the middle of the Sahara dessert can't make money from a captive audience of 1000 multi-billionaires dying of thirst.

Thai Airways is similar to the department of inactive posts. It's main function is as job guarantee for politicians kids and relatives. The airline part is a distant second.

Unfortunately a politicians kid cannot have the same salary as everyone else, as there is no prestige in that, so salaries are high, which of course is not good for the bottom line - or the tax payers.

[xerostar]

I've noticed the Thai Airways hostesses (sorry, I mean flight attendants ) on the Perth - Bangkok run

are getting older and not all are lovely like they used to be.

Thai airways should replace them with crews from Nok Air or Smile Air !

- These young ladies are fresh, eager to please and mostly stunners!

Edited July 22, 2014 by xerostar

[Dublin]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

Perhaps they should take you on as a consultant, you seem to know the answer to it's problems and how easy they are to solve.

Mango Bob hit the nail on the head, there are many problems with Thai air the main one being the senior management.

I used to fly Thai air regularly but now i cannot justify the price when other airlines are cheaper flying the same routes. It has become abundantly clear every time Thai airlines are in trouble the first thing they do is up the price, loose more customers up the price again and there you have it recipe for disaster.

I wont go into the free flight for family, friends and officials as I’m sure it’s be beaten to death on other threads

[Snig27]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

Perhaps they should take you on as a consultant, you seem to know the answer to it's problems and how easy they are to solve.

Mango Bob hit the nail on the head, there are many problems with Thai air the main one being the senior management.

I used to fly Thai air regularly but now i cannot justify the price when other airlines are cheaper flying the same routes. It has become abundantly clear every time Thai airlines are in trouble the first thing they do is up the price, loose more customers up the price again and there you have it recipe for disaster.

I wont go into the free flight for family, friends and officials as I’m sure it’s be beaten to death on other threads

Isn't that the truth - after the coup, when Thailand's tourist arrivals plummeted and the planes were 80% empty, they raised their prices to make up for it. I agree too, putting an airforce general in charge is beyond hopeless. Just a new nose in the trough.

Bangkok Airways on the other hand, I really like. Great service, efficient and priced competitively. Put them in charge ... They've just got Skytrax's “best regional airline in the world" and in Asia awards. http://www.bangkokpost.com/business/aviation/420898/bangkok-airways-flies-high

[Oziex1]

Airlines around the world are struggling in a highly competitive industry, major cultural changes are needed to save the airlines of some countries. Qantas are going through this now and needed to as they were /are a sht product loosing money and hoping / expecting the Australian government to bail them out. Thankfully that didn't happen, I think the public is tired of private profits and public losses, from poorly managed corporations.

Thai will need to bite the bullet with austerity measures like Qantas and if an effective CEO cannot be found locally then they have to look elsewhere.

[wandasloan]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

Perhaps they should take you on as a consultant, you seem to know the answer to it's problems and how easy they are to solve.

I'm presuming he means THAI could use the England football team as the model. Outsiders have been so successful there.

.

[Sydebolle]

Possibly the most raped carrier over the last 30 years.
Ever tried to phone these guys; they keep you in the "smooth as silk song" loop for ages and then give you a TELEFAX number so they can call back. I did that (for fun); still waiting for anyone calling back on my three messages I faxed - chose Bangkok Airways instead.
The aircraft are old, the seats narrow, the crew arrogant and price wise there are much better value-for-money alternatives.

Years ago I saw an advertisement for the post of president which listed under skills "never done a jail term" - or was that the State Railways of Thailand?

There should be no government intervention/cash injection - the market will decide and it seems, that the decision is reached already

[jacko45k]

The problem is they are always looking for a Thai to fill the position. They need to look outside of Thailand for someone who is qualified.

But a Farang cannot do a job a Thai can do.

wait................. WHAT !!

Perhaps they will change their perspective and appoint a new foreign chairman, who will of course be required to get a work permit and do 90 day reporting. While waiting for the permit he may be required to work using exemption stamps and visa runs.