THAI
National airline to downsize and reduce routes

BANGKOK: -- The State Enterprise Policy Committee has approved in principle Thai Airways International's rehabilitation plan, which was discussed in a meeting on Monday chaired by the prime minister.

Measures will include a reduction of the airline's staffing by 5,000 and cancellation of its non-performing routes.

THAI is one of even troubled state enterprises. In the first nine months of 2014, the airline suffered losses of Bt9 billion. It recorded a loss of Bt12 billion in 2013.

The rehabilitation plan will see its workforce slashed from 25,000 to 20,000.

The BangkokJohannesburg route was already cancelled on January 15 and the BangkokMadrid, BangkokMoscow, BangkokLos Angeles routes are likely to be axed in the second quarter of this year.

Decisions on routes that do not make a profit but are considered to have potential will be made in the fourth quarter. They include Bangkok-Rome, Bangkok-Milan, Bangkok-Brussels, Bangkok-Brisbane, Bangkok-Sapporo, Bangkok-Colombo, Bangkok-Denpasar and Bangkok-Hyderabad.

Under the rehabilitation plan, THAI’s fleet will also be revised. It will sell 22 old aircraft and decommission 14 Boeing 747-400 and Airbus A 340-600 craft.

THAI also plans to sell its stakes in Nok Air, BAFS and Novotel Suvarnabhumi Airport Hotel. THAI holds a 39-percent stake in Nok Air, a 22.59-percent stake in BAFS and a 30-percent stake in Novotel Suvarnabhumi Airport Hotel. THAI also plans to sell its shares in the Amari Airport Hotel and Royal Orchid Sheraton Hotel as part of its business restructuring.

Source: http://www.nationmultimedia.com/national/National-airline-to-downsize-and-reduce-routes-30252743.html


-- The Nation 2015-01-27

By By Star Alliance.

Will the sackings be from the lower ranks,or

with the top heavy management,face cuts as

well, with golden handshakes one presumes.

regards Worgeordie

Less freebies for the House?

To reduce cost, start by reducing all pay for executives.

About six months ago the razor sharp minds at Thai decided to dramatically devalue the returns on membership of its frequent flyer program. They managed to alienate a very significant proportion of regular flyers and were forced to back down after a passenger backlash. I suspect many of those member have been building allegiance to other carriers in anticipation of the proposal coming back. The management of Thai seemed CLUELESS in respect of the relationship between passengers and loyalty rewards and were on the verge of destroying the program.

Were it no for govt investment and national pride Thai would go under.

Guess they have to live with what European airlines have learned the hard way: you can't compete with heavily state-subsidised Gulf airlines on the routes.

Anyway, Thai deserve what's happening to them. I haven't flown them for quite some time between Europe and Thailand because my last attempts were big disappointments: ageing aircrafts (and flight attendants...), outdated in-flight-entertainment, average food and not even that friendly cabin staff. One would really expect better on these two specific points from an airline called THAI.

Less freebies for the House?

No, No a thousand times no. increase the fares for the nobody's.

About six months ago the razor sharp minds at Thai decided to dramatically devalue the returns on membership of its frequent flyer program. They managed to alienate a very significant proportion of regular flyers and were forced to back down after a passenger backlash. I suspect many of those member have been building allegiance to other carriers in anticipation of the proposal coming back. The management of Thai seemed CLUELESS in respect of the relationship between passengers and loyalty rewards and were on the verge of destroying the program.

Were it no for govt investment and national pride Thai would go under.

Every word true. I do some 50 international flights a year, about 20% with Thai. I had a gold card but it slipped to a silver when I started using other airlines. Despite this I was 6 points away from going back to gold. As a former Gold ROP member (for some years) I rang to see if I could have a gold - no I was told, I would need to cross that trigger point. An email asking if they would reconsider was ignored (as, indeed, are most ROP emails).

Emirates, on the other hand, without asking, bumped me up a tier before I hit the trigger, as a recognition of loyalty.

I now only fly Thai when there is no other option.

Thai-air is far too expensive. If they just dropped the price their planes would be full and make profit.

But since they are Thai they would rather increase the price i guess.

They got to do something before they become a real " baskit case"...although national pride wont allow....and wont happen...

As an X Gold Card FF member I dropped them a couple of years ago after they left me stuck...without a paddle...and 6 months of emails....arrgg..dump them....

Still recon on a good product but they are living in the clouds..

Just ran a quick check on our summer round trips fares for later this year on various budgie operators.....left out the likes of Voodoo ,Taliban and Bod-git airways....not a surprise....1x Person Return......Decisions...decisions....jao...

• £540 Austrian Airlines
• £591 British Airways
• £603 Cathay Pacific
• £751 Emirates
• £419 Etihad Airways
• £755 EVA Air
• £509 Finnair
• £689 KLM
• £693 Malaysia Airlines
• £382 Oman Air
• £411 Qatar Airways
• £821 Singapore Airlines
• £589 Swiss
• £1,057 Thai Airways

Hope their staff downsizing is built on a specific model of what they want to retain, mostly focused on attitudes and service orientation.

I had an incident with them some years back flying business class to Jakarta with my 18 yr old Thai son sitting next to me on a full fare ticket, between meals (all quiet in the cabin) he politely asked for a glass of coca cola. The response from the arrogant hostess, "go and ask in economy class" and she just walked away. I objected, supervisor arrives and loudly kept proclaiming "it's just a misunderstanding" with the original hostie refusing to come back to the seat. I then asked for a glass of coca cola, when it came I pushed the girls arm so that she put the glass in front of my son. Ten minutes later another hostie came to my seat and said "why are you so rude to my friend, she comes from a famous family".

Three letters to Thai all ignored.

National airlines are often a direct reflection of a country and its government.

Might as well drop this silly facade, and make it part of the Civil Service. Have them wear khakis, and offer fun incentives like earning a new ribbon for every 100,000 miles flown.

They'll look like Mexican generals in no time, but the swords may create an issue at airport security.

National airlines are often a direct reflection of a country and its government.

The number of military families now flying business on Thai is quite noticeable - all on military salaries

I find service in business class to be rude and/or grumpy more often than not- amazing. Mind you the stewardesses who work in business class all seem to be months away from the retirement age, so i guess they must be fairly tired of the job on their side.

To reduce cost, start by reducing all pay for executives.

start to reduce the executives.....I am opposing, even it would be fair for all the corruption, to execute the executives.....

When is the date the responsible ones have to show up at NLA and get the impeachment for the losses??

They got to do something before they become a real " baskit case"...although national pride wont allow....and wont happen...

As an X Gold Card FF member I dropped them a couple of years ago after they left me stuck...without a paddle...and 6 months of emails....arrgg..dump them....

Still recon on a good product but they are living in the clouds..

Just ran a quick check on our summer round trips fares for later this year on various budgie operators.....left out the likes of Voodoo ,Taliban and Bod-git airways....not a surprise....1x Person Return......Decisions...decisions....jao...

• £540 Austrian Airlines
• £591 British Airways
• £603 Cathay Pacific
• £751 Emirates
• £419 Etihad Airways
• £755 EVA Air
• £509 Finnair
• £689 KLM
• £693 Malaysia Airlines
• £382 Oman Air
• £411 Qatar Airways
• £821 Singapore Airlines
• £589 Swiss
• £1,057 Thai Airways

Thats a very revealing post. Well done, but what is the destination country?

At those prices, it's a wonder THAI has any customers at all.

Flew to Melbourne using Boeing 777-200, the aircraft was showing its age, looked quite scruffy and in need of a thorough refurbish. Crew were lazy and had no interest in providing service and they gave the impression that the passengers were an inconvenience for them . How they have changed in the last 5 years

By By Star Alliance.

Care to elaborate?

These companies need to make money; otherwise there is no milk money for the tea in the morning?

Why is a Prime Minister sitting in on a company board meeting? Isn’t there enough military on the board anyway?

The mind set to acquire and hold onto the best hotels at the airport, one can understand. But I don't agree with it. Assets like these have there eye teeth picked out, but serve only those who are in power. The distribution of wealth back to the people would not be great. So why are they holding onto assets like this? I see they are talking about selling them now, but the people who are in line to buy the asset should pick them up at a good price. And do the monies go into financing Thai Air?

Thai Air really need to improve on service. I would rather fly Emirates, getting in at 1.00am in the morning; they look after you. Last two times on Thai, very grumpy service on tired planes. 9hrs and being treated like toe jamb, you are kidding. Even Jetstar business class; just a happy crew.

what are the chances that the VIP directors, managers, family

all flew for free + stayed in those hotels free of charge ?

Only about two years too late.

I remember about 10 years ago Thai airlines were full like sardine cans

on the syd-bkk route, the fares were excellent, 9 hour direct flight, it

docked at the airport not far from immigration avoiding the 3km walk.

Very good and very convenient, i find myself flying with other carriers

now ? i wonder why, i have to pay for my flights out of my own pocket

so i look for flights that have the shortest flying time and short layover.

Having to fly back and forth from the EU i find flights change every day

with prices and i'm not flying Air China which are the cheapest but take

you to China then to your destination 35 hours later, better to pay a bit

more just for the convenience.

Amazing that it took them many years to find out that they are just too expensive.

And it's the same with the rest of Thailand, too expensive for what you get. Too many persons living the easy life at the cost of others.

They got to do something before they become a real " baskit case"...although national pride wont allow....and wont happen...

As an X Gold Card FF member I dropped them a couple of years ago after they left me stuck...without a paddle...and 6 months of emails....arrgg..dump them....

Still recon on a good product but they are living in the clouds..

Just ran a quick check on our summer round trips fares for later this year on various budgie operators.....left out the likes of Voodoo ,Taliban and Bod-git airways....not a surprise....1x Person Return......Decisions...decisions....jao...

• £540 Austrian Airlines
• £591 British Airways
• £603 Cathay Pacific
• £751 Emirates
• £419 Etihad Airways
• £755 EVA Air
• £509 Finnair
• £689 KLM
• £693 Malaysia Airlines
• £382 Oman Air
• £411 Qatar Airways
• £821 Singapore Airlines
• £589 Swiss
• £1,057 Thai Airways

Thats a very revealing post. Well done, but what is the destination country?

At those prices, it's a wonder THAI has any customers at all.

The destination is important, BA is exceedingly cheap here and that isn't my experience. Someone told me that host airlines can't cut their fares too much; something to do with 'Open Skies' apparently so if that is true Thai would be more competitive from Europe I'm sure.

National airlines are often a direct reflection of a country and its government.

The number of military families now flying business on Thai is quite noticeable - all on military salaries

Tickets complimentary of the THAI air shareholders. That's the problem it's not run like a business. More like a state owned enterprise

I must have missed the part about serious fare reductions. Methinks their strategy is to retain high fares and the routes on which they can book enough passengers at non-competitive rates while driving down costs. This can only be a stopgap measure, because good cheap alternatives will eventually show up in those markets. This is the kind of "solution" that comes from the beancounters. Numbers. It's all in the numbers for them, so of course passengers won't be seen as anything other than statistical entities with money. Statistical entities don't need superior service, comfortable seats, enjoyable food, etc. - especially if those things are seen as "interfering with the profit picture."

By By Star Alliance.

It's prudent to axe those routes. Low yield potential.

Thai I doing the right think in my stupid opinion.

Every airline is suffering. Every single one.

The whole world economy has reached its ponsey scheme heights

Seems THAI airways is having similar projlems to Britains flagship airline British airways.