Prayut dismisses rumor of THAI going bankrupt

BANGKOK: -- Prime Minister General Prayut Chan-o-cha today denied rumor that Thai Airways International, the country’s flag carrier, is going bankrupt but admitted that it is undergoing financial rehabilitation to lower cost and increase income.

The prime minister dismissed the rumor after he chaired a meeting of the State Enterprise Policy Committee (or known as super board) to endorse the THAI’s financial rehabilitation scheme.

Gen Prayut said THAI wouldn’t go bankrupt as the government was taking care of it.

However it had to cut its expenditures, increase revenues and cut routes which are not worth investment.

He said that THAI has to sell some of its assets or aircraft, cut unnecessary cost to stay profitable as there is tough competition in the aviation industry.

He said he did not assess THAI’s performance but it is assessment by outsider that recommended improvement of THAI’s management, staff and to increase revenues, sell some assets and cut loss-ridden routes.

Source: http://englishnews.thaipbs.or.th/prayut-dismisses-rumor-thai-going-bankrupt

-- Thai PBS 2015-01-27

Thai Airways International won't go bankrupt: PM
By Digital Content



BANGKOK, Jan 27 -- Prime Minister Prayut Chan-o-cha insisted that he would not let Thai Airways International (THAI) go into bankruptcy but it must cut expenses, increase income, sell assets and restructure its organisation.

After chairing a meeting of the State Enterprise Policy Commission at Government House today, Gen Prayut said solutions were discussed regarding survival of loss-ridden state enterprises and resolved that four or five state enterprises would undergo rehabilitation steps including restructuring and legal amendments to support their operations.

Regarding losses at THAI, the national flag carrier, Gen Prayut said that the government would not let it become bankrupt.

It must change its management, structure and workforce, reduce expenses, raise income, cut non-performing routes, and partially sell assets including unnecessary aircraft through transparent auctions, he said.

Kulit Sombatsiri, director-general of the State Enterprise Policy Office, said that the State Enterprise Policy Commission approved the Statement of Direction to centralize state enterprise supervision.

It also endorsed establishing a superholding company to hold shares in state enterprises in place of the Ministry of Finance. The commission also approved a plan to resolve the problems of the State Railway of Thailand (SRT).

It assigned the Ministry of Transport to form a railway department to supervise all railway organizations.

To solve SRT debts exceeding Bt100 billion, the commission resolved that the railways transfer assets worth more than Bt80 billion to the Ministry of Finance for profitable management.

In addition the commission approved a plan to solve the problems of the Bangkok Mass Transit Authority and raised the salaries of employees at 35 state enterprises by 6.5 per cent on average to match the minimum daily wage rate of Bt300. (MCOT online news)


-- TNA 2015-01-27

"It assigned the Ministry of Transport to form a railway department to supervise all railway organizations."

But, China is going to build Thailand a dual track railroad for which Thailand will owe umpteen gazillion baht.

In the meantime they can prop up the huge losses from the airline so that happiness is returned to all Thais.

They will give raises to government employees to match the new minimum wage.

I'm sure this is all great news to the people who are stooped over planting rice in Isaan.

and raised the salaries of employees at 35 state enterprises by 6.5 per cent on average to match the minimum daily wage rate of Bt300

So 35 state enterprises had failed to implement the increase in minimum-wage, which was supposed to have been done a couple of years ago, when the peoples' darling & her party were in-power ?

Is it any wonder that private businesses might be tempted to not pay employees properly, with such a stellar example being set, by the state ?

He might want to check why their pricing structure on long haul results in so,many empty seats.

The cash flow diagram is fairly standard. It has been in operation for a long time.

Thai taxpayer =====> Thai treasury ======> Thai Airways ======> Vested interests

Bankruptcy, I don't think so, because this works very well for those at the end of the chain.

Urgent warning to all of those and such as those, get all your free flights in now before... !

THAI cannot go bankrupt ... would be so bad for Thailands image

Much better to let them continue to lose billions

''Financial Rehabilitation'' ! Well; that's one way of putting it into fancy words that have not been used before.

Love the 'Assessment by outsider' bit. I guess nobody 'inside' is smart enough to know what to do.....or is not interested in changing anything.

Meanwhile it will be business as usual and plenty of talk but no action.

For a moment I got all excited because the title suggested to me that they were talking about the country. Now that would help with this ridiculous exchange rate.

Look at this worried face.

"Gen Prayut said THAI wouldn’t go bankrupt as the government was taking care of it."

Of course, that's how it's always done here. Deficit of 2 billion, get 4 billion loan, with extra 2 billion to use. Ooops. Deficit again, get another 10 billion loan to pay the 4 billion loan. Endless. Country is okay with that, government is okay with that. Prints more money to pay for loans, end result? Too much "fake money" floating around with less value, pushes up inflation and prices. Anyone who holds cash or money loses.

I've looked at THAI's stock for over 4 years, not once impressed. Not even when they said there was a pullback. Lousy company making losses every year.

So nothing about actually improving the marketing side of THAI, the prices for most routes to Europe and the USA are a joke, the prices are up to 20,000 baht more expensive than other companies like BA, Emirates, Etihad. Surely being a little more competitive might be a start, i mean at least try to be competitive.
I could upgrade a direct london flight with BA to upper edonomy for a direct flight to London and still pay less than standard economy with THAI. A joke indeed

The cash flow diagram is fairly standard. It has been in operation for a long time.

Thai taxpayer =====> Thai treasury ======> Thai Airways ======> Vested interests

Bankruptcy, I don't think so, because this works very well for those at the end of the chain.

Gen Prayut said THAI wouldn’t go bankrupt as the government was taking care of it.

The international airline industry is a very tough business to be in, you need to be on top of your game.

From what I can see, Thai is slipping when compared to the new kids on the block and they're going to need the very best management and financial people to compete in this environment.

Or they can continue to pour money into it with no regard for taxpayers.

Don't worry.

THAI can always use tax payer money to keep them afloat.

and raised the salaries of employees at 35 state enterprises by 6.5 per cent on average to match the minimum daily wage rate of Bt300

So 35 state enterprises had failed to implement the increase in minimum-wage, which was supposed to have been done a couple of years ago, when the peoples' darling & her party were in-power ?

Is it any wonder that private businesses might be tempted to not pay employees properly, with such a stellar example being set, by the state ?

This cannot be true, can it? YS had claimed many times about keeping election pledges. What happened to this pledge? They had over 2 years to effect it before the rice scam shifted all over.

Thai Airways with a history of Government interference,corruption,

nepotism,and gross mismanagement,they need to get in some

professional managers,preferably outsiders,who are given a free

hand to tun the airline around,then it could maybe return to the

excellent airline it was in the past.

regards Worgeordie

The feeling you gett from flying Thai is they just do not care anymore. Their pricing and genneral attitude shows that They use to have a Taipei Hong Kong Bangok route which was great.

Many years ago I flew Thai,now? Far to expensive for what is an ordinary airline

Jobs programme. Too big to fail.

I flew Thai last month because of a flight delay I was booked on another carrier. I half to say the planes where old. My seat did not work properly My video touch screen was not working properly I had to touch it a number of times before it would change if it changed at all

And the food was lousy And I do like Thai food since I have lived in Thailand for a long time

So to see this carrier have problems is not a surprise.

Thai needs management that can really look at their problems and change the airlines . Once is their advertising It is NOT as smooth as silk More like wool if I had to compare

" Prayut said THAI wouldnt go bankrupt as the government was taking care of it".

"I cannot imagine any condition which would cause a ship to founder. I cannot conceive of any vital disaster happening to this vessel. Modern ship building has gone beyond that."

Captain Edward Smith - RMS Titanic

I'm flying to Madrid in March.

With TG

Pros

Quick check in and fast track immigration

Direct Bkk - Mad

Cons

Busy lounge with lousy food and alcohol

Old 747 - not even full flat

Food - mediocre at best

Stewardesses - almost my age

Price > 170,000 bht

With EK

Cons

Stopover in Dubai

Pros

Great lounge with top class wines, champagne and food

777 / A380 - full flat with 100's of movie channels

A la carte menu

Full bar on board (A380)

Stewardesses - some young and attractive ones

Price 110,000 bht

Who in their right minds will fly TG?

The cash flow diagram is fairly standard. It has been in operation for a long time.

Thai taxpayer =====> Thai treasury ======> Thai Airways ======> Vested interests

Bankruptcy, I don't think so, because this works very well for those at the end of the chain.

+1...I believe your right.

Its impossible that TG will go bankrupt because its being run by Thais and like Thai dogs (who I am told are so smart) its impossible to go bankrupt in the hands of such geniuses and the state will prevail once again!!!!!

No Finance or Economic strategy and no foreign involvement needed because we are gods of the air!!

Thai ticket price and service still competitive from Australia, I am comfortable with Thai forget the flying Kangaroo.

Why would i fly Thai when for half the price i can fly Jetstar, low price = seats full, not rocket science