PM Prayut: THAI Airways solvent

[webfact]

PM: THAI Airways solvent

BANGKOK, 26 January 2015 (NNT)-Prime Minister General Prayut Chan-o-cha has insisted that Thai Airways is not going bankrupt as rumored.

In response to the rumors of Thai being insolvent, General Prayut said the government is now reaching out to the national carrier. The meeting is also held today to find ways to return the flag carrier into the black.

The government will aim at reducing costs and increasing revenues. Some of its assets, such as planes that are no longer in use, will be sold.

Meanwhile, General Prayut disclosed that the Ministry of Commerce had already auctioned off 1 million tons of rice in the government's stockpile. Despite the auction, the price of the new crop of rice will not be affected, the General assured.

The government also has a policy of selling grains at lower prices. Every province is expected to follow suit. Grains and their quality must be divided into categories before selling.

As for the new season of rice growing, the government will provide seeds and fertilizer in an attempt to help curb the cost of production for farmers.

-- NNT 2015-01-26

[baboon]

Fine. Absolutely nothing to worry about, then. THAI will undoubtedly continue to go from strength to strength - what would the silly bloody passengers know about anything anyway?

[Thai at Heart]

So presumably this means the government is primed to whack another few billion in.

I reckon they should impeach sucessive recent governments for continuing to finance these debts and cause damage to the country.....

[ratcatcher]

Surely there is a fine line between "being solvent" and "not going bankrupt".?

Good to see that the government is reaching out to the national carrier. Perhaps that is Thaispeak for throwing them a life line or more aptly an oxygen mask. Perhaps if they disembarked a few of the overweight, overpaid passengers on the "Thai Jet", they might free up some funds to save this airline.

.

[Snig27]

yes, of course - continue the same sort of block headed interference that has caused these problems to start with. Old men, past their use-by date (without the valid skills to start with) should not be interfering in something like Thai. Thailand is one of the most visited countries on planet earth, it is in a prime hub location, has an almost new airport - it's almost impossible not to make it work as an airline but here we go again.

These people are a mix of so far out of their depth and mind numbingly arrogant, it's staggering. Bring in people who know how to run an airline ...

[baboon]

yes, of course - continue the same sort of block headed interference that has caused these problems to start with. Old men, past their use-by date (without the valid skills to start with) should not be interfering in something like Thai. Thailand is one of the most visited countries on planet earth, it is in a prime hub location, has an almost new airport - it's almost impossible not to make it work as an airline but here we go again.

These people are a mix of so far out of their depth and mind numbingly arrogant, it's staggering. Bring in people who know how to run an airline ...

...Or even just the guy in the sweet shop round the corner...

[Costas2008]

Does that mean the air fares with Thai are going up?

Just thinking.......Thai logic.......if it doesn't sell, increase the price

[konying]

I always fly Thai and have no problems with them.

If Thai reduced prices just a little to compete with others, no doubt it will be back to being profitable.

They might also want to invest in better website and booking engine with better payment getaway to keep customers

[starky]

-Prime Minister General Prayut Chan-o-cha has insisted that Thai Airways is not going bankrupt as rumored. Further to that everything is fine in the Kingdom there are no scams, no suspicious deaths or murders and tourist numbers are soaring, nothing to see here... move along

[mikemac]

I always fly Thai and have no problems with them.

If Thai reduced prices just a little to compete with others, no doubt it will be back to being profitable.

They might also want to invest in better website and booking engine with better payment getaway to keep customers

I agree, and have been using them for years, at least three return flights a year to Australia and always fly with them within Thailand.

Don't really care what anyone else thinks of them, and I will support them as long as they are in the air. I think the service they provide suits the fares they charge.

Have not used their website, usually buy tickets over the counter at Chiang Mai airport or through my agent in Australia.

My wife flew to Australia last year with our 11 month old son and she said the staff could not have been more helpful.

The only time I have ever been delayed with them was flight from Kunming in China to Bangkok, a three hour delay due to a mechanical fault.

But we eventually got there, better late than never.

[chotthee]

With the oil price now half of what it used to be be, THAI will make so much profit that all other airlines will envy.

Especially envy by SQ, CX & QF.

[baboon]

I always fly Thai and have no problems with them.

If Thai reduced prices just a little to compete with others, no doubt it will be back to being profitable.

They might also want to invest in better website and booking engine with better payment getaway to keep customers

I agree, and have been using them for years, at least three return flights a year to Australia and always fly with them within Thailand.

Don't really care what anyone else thinks of them, and I will support them as long as they are in the air. I think the service they provide suits the fares they charge.

Have not used their website, usually buy tickets over the counter at Chiang Mai airport or through my agent in Australia.

My wife flew to Australia last year with our 11 month old son and she said the staff could not have been more helpful.

The only time I have ever been delayed with them was flight from Kunming in China to Bangkok, a three hour delay due to a mechanical fault.

But we eventually got there, better late than never.

Better to be on the ground wishing you were in the air than in the air wishing you were on the ground, as they say...

[bowerboy]

Airlines make money from their Business Class and First Class offerings.

Thai business class is one of the worst in the world. No one in their right mind would pay for Business Class on Thai. I Fly Thai Business on most flights PURELY becuase I can upgrade with points...no way in the world I would pay for their business class.

They lose so much money becuase their premium, money making seats are full of freeloaders and no one pays. The price of Thai business class and other far superior business class is almost the same...but the product is infinitely superior on other serious airlines.

Another small example...flying to Singapore on Singapore Airlines in Economy class is about 15% cheaper than flying on Thai Airways. So you pay 15% LESS and get:

Bigger seats

Better IFE

Better Food

Much better business class lounge

Exit at gate (not bus to terminal)

And you get the same frequent flyer awards

Doesnt take a rocket scientist.

[apetley]

With the oil price now half of what it used to be be, THAI will make so much profit that all other airlines will envy.

Especially envy by SQ, CX & QF.

http://mobile.reuters.com/article/idUSL3N0RO36G20140925?irpc=932

Oh dear.

[Fat Haggis]

I always fly Thai and have no problems with them.

If Thai reduced prices just a little to compete with others, no doubt it will be back to being profitable.

They might also want to invest in better website and booking engine with better payment getaway to keep customers

I agree, and have been using them for years, at least three return flights a year to Australia and always fly with them within Thailand.

Don't really care what anyone else thinks of them, and I will support them as long as they are in the air. I think the service they provide suits the fares they charge.

Have not used their website, usually buy tickets over the counter at Chiang Mai airport or through my agent in Australia.

My wife flew to Australia last year with our 11 month old son and she said the staff could not have been more helpful.

The only time I have ever been delayed with them was flight from Kunming in China to Bangkok, a three hour delay due to a mechanical fault.

But we eventually got there, better late than never.

I think you'll find Mike that the majority of flyers have never had an issue with the aircrew, or the aircraft, it's the fat cats who sit in the boardrooms who use and abuse the system, whilst shafting the regular punters all whilst they continue to take massive bonuses.

But seriously, does anyone really think that the PM would say anything different about he flagship airline? He's not about to do a Gerald Ratner and slag off his own product

It would be tantamount to Steve Jobs when he was still alive slagging off iphones and saying they were overpriced and a wank product!!

[mommysboy]

That's right give a thick was of taxpayer money and voila! problem gone.

[Fab5BKK]

+1

SQ and CX (just to compare with regional competitors) are much better than Thai

Airlines make money from their Business Class and First Class offerings.

Thai business class is one of the worst in the world. No one in their right mind would pay for Business Class on Thai. I Fly Thai Business on most flights PURELY becuase I can upgrade with points...no way in the world I would pay for their business class.

They lose so much money becuase their premium, money making seats are full of freeloaders and no one pays. The price of Thai business class and other far superior business class is almost the same...but the product is infinitely superior on other serious airlines.

Another small example...flying to Singapore on Singapore Airlines in Economy class is about 15% cheaper than flying on Thai Airways. So you pay 15% LESS and get:

Bigger seats

Better IFE

Better Food

Much better business class lounge

Exit at gate (not bus to terminal)

And you get the same frequent flyer awards

Doesnt take a rocket scientist.

[tartempion]

I always fly Thai and have no problems with them.

If Thai reduced prices just a little to compete with others, no doubt it will be back to being profitable.

They might also want to invest in better website and booking engine with better payment getaway to keep customers

I am sure if ALL of us here would fly Thai they might become profitable.

But I have flown better (and cheaper) airlines since 2000. (and I do fly business class)

Edited January 26, 2015 by tartempion

[bangrak]

Brothers, sisters, compatriots, we the members of the armed forces are proud of our national flag carrier Thai Airways, and to show our unanimous support, this year every satang of corruption money we collect will be transfered directly to our magnificent airline, that way all planes will fly the whole year long, even without passengers, and we will still be able to keep the lights burning in the cabins! Haa, that would be true, meaningfull leadership!

Joooking, of course...

[bangrak]

Tell me one thing in Thailand that is running as good as it can. One!

Tell me why no things in Thailand run, a bit, right. Ah, there I have the, double answer: Thainess and the elites (especially the 'Chinese merchants').

Tell me why it's very unlikely to change. And there you all have the answer: 'the system'.

Tell me why the Thais don't have the b.lls to end 'the system'. There I don't understand what's missing, the b.lls maybe, and education...?

[MaiChai]

Here we go again. How many times has Thai Airways been in this situation? In a country where every Thai tries to pay the lowest price for products and services, Thai Airways defies all logic and charger much higher prices for economy than other airlines. For me i have to get from Europe to Thailand and its a long way. Thus price is important. Another problem for the General to fix? He sounds more like a farang than a Thai!

[Thai at Heart]

Here we go again. How many times has Thai Airways been in this situation? In a country where every Thai tries to pay the lowest price for products and services, Thai Airways defies all logic and charger much higher prices for economy than other airlines. For me i have to get from Europe to Thailand and its a long way. Thus price is important. Another problem for the General to fix? He sounds more like a farang than a Thai!

This is predicated by the entire idea that all farangs can be duped as long as everyone stays quiet.

[rickirs]

So long as the Thai government owns 51% of the airlines, it will remain solvent.

The government can just keep injecting capital into the airlines regardless of financial performance. But the issue for the government should be solvency at what cost? What other investments could the government make with the same or less financial risk which would better benefit the Thai people?

When the nation's economy NOW desparately needs capital investment to regain its economic growth, Thai Airways should not be the first priority. About 70% of the Thai GDP comes from exports which are contracting at below expected annual growth rate. Of the remaining 30% GDP, about one-fifth comes from GOVERNMENT INVESTMENT with the balance attributable to domestic consumption and agriculture. Only the government now is capable of providing any significant economic stimulus to grow the economy and, thus far, it has failed to do so like a miser who still has his first earned baht.

The government needs to liquidate its 51% of Thai Airways stock that should fetch a 20%-30% premium over its publicly-traded share price. Then put that money to WORK for the nation. Use the funds to generate small and mediuam size businesses, employment, wages, domestic consumption, etc.