THAI to undergo sales restructuring

[webfact]

THAI
THAI to undergo sales restructuring
Suchat Sritama
The Nation

BANGKOK: -- Thai Airways International plans to revamp its sales set-up this year, as well as seeking Bt25 billion for debt repayment and use as cash flow.

"The company will employ experts, perhaps outsiders, to help boost sales. We predict the average [passenger] load factor will increase from 70 per cent last year to 80 per cent this year [as a result], a similar level to many other airlines," THAI president Charamporn Jotikasthira said yesterday.

The national flag carrier aims to complete the sales-restructuring plan within six to eight months, he said.

The average load factor for THAI's passenger services in some key markets such as China has grown by 20 per cent compared with the same period last year, but the load factor in Europe remains in the red, he |added.

Sales restructuring is part of the airline's master plan for financial and business reform, which aims to return THAI to profit this year, after experiencing losses for four consecutive years.

Under the overall plan, the airline has drafted 17 sub-plans in key areas such as maintenance, marketing and aircraft sales. The company has internally transferred executives, including Charamporn, to lead these units, with each team running its own operations and being given the flexibility to complete its goals within different time scales.

On the financial front, Charamporn said THAI's board had approved a plan to seek loans totalling Bt25 billion to repay debt, and also for use as cash flow for other expenses this year and next.

Initial borrowing of Bt15 billion would be used this year, with a further Bt10 billion scheduled for use in 2016.

A further Bt10 billion will be spent on eight new aircraft scheduled to arrive this year.

The airline also plans to sell 22 old aircraft by the end of July, and a further 20 by year-end, said the company president.

During this year's Songkran Festival, the airline plans to increase overall capacity by 4,000-8,000 seats on its Chiang Mai, Phuket and Krabi routes.

The load factor on its Bangkok-Chiang Mai route has plunged this week because of heavy smog in the northern province, but is expected to return to normal next month, he said.

Source: http://www.nationmultimedia.com/business/THAI-to-undergo-sales-restructuring-30256197.html


-- The Nation 2015-03-18

[ExpatOilWorker]

Great, sell me some reasonably priced tickets, please.

[NongKhaiKid]

A la TAT there's an increased sales prediction based on what, hope ?

[Ricardo]

"A further Bt10 billion will be spent on eight new aircraft scheduled to arrive this year."

I thought all new aircraft were supposed to be leased, not purchased ?

[JAG]

Is "sales restructuring" a euphemism for jacking the fares up?

[JOC]

It is really very simple!!

Do something about your pricing structure, you are not the superior carrier, but a very average airline, which should be reflected in your ticket prices.

Scary when a group of incompetent people have access to big budgets and can lean on the state to cover their backsides!!

[realenglish1]

You guys at Thai airways thing that some slick advertising will do the trick. It will not . Its the price of your tickets Its a simple as that . Why should I pay 30 to 50 % more for a ticket on your airline when I can fly for less.

You are talking about short haul flights. On those fights the most important thing on a travelers mind is getting from point A to point B. On long haul fights service is important but on short flights no one cares. You need to understand this and at this stage you do not .

Your plan will never work. As stated in this article Get some outside experts. Maybe even get Branson as a partner . He will be sure to turn the airline on its ear and get it profitable again

Stop worrying about your butt and do something with Thai Airways It is not "as smooth as Silk" anymore

[Lupatria]

A la TAT there's an increased sales prediction based on what, hope ?

Thry these: Predictions by monks, oracles, lack of math skills, conveniently modified statistics and consultation from a horde of high paid inactive board members.

[Katipo]

Blah blah blah... blah blah blah blah blah.... blah blah.

[HeijoshinCool]

.

Here's another prediction for you, Charamporn:

Three or four years from now, Thai Airways will be a memory, and you'll be job hunting.

[Thian]

Why are returntickets for 6 months much more expensive than tickets for 1 month?

Why are one way tickets almost same price as return tickets?

Thai should be the airline who has those tickets for the lowest price. Why are those more expensive anyway? It's just an administrative thing and these days computers can do the bookingsystems.

Or Thai can be the only airline where baby's are not allowed onboard on special babyfree flights. Or start with flights for smokers to get customers back.

Now Thai air just costs almost double price while europe is in crisis. Why did it take them so long to see this?

[madmitch]

Great, sell me some reasonably priced tickets, please.

They've chopped their domestic prices dramatically but still expensive internationally.

Just booked BKK-HKT at Songkran for 1700 baht (1300 baht for my 9 year old daughter).

Not sure why they need to cut costs over Songkran as the seats will probably sell out anyway, but at these prices Thai Airways will no longer be my last choice of airline for domestic travel.

[Briggsy]

The Thai taxpayer will always be there to prop up the affluent lifestyles of the employees, directors and beneficiaries in terms of free flights. You can call this disbursement a "loan" if you like but is there any intention to pay it back and what are the terms of the loan? In a free market, the government should be asking for a yield of at least 9% on such a risky loan.

[Thian]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Great, sell me some reasonably priced tickets, please.

They've chopped their domestic prices dramatically but still expensive internationally.

Just booked BKK-HKT at Songkran for 1700 baht (1300 baht for my 9 year old daughter).

Not sure why they need to cut costs over Songkran as the seats will probably sell out anyway, but at these prices Thai Airways will no longer be my last choice of airline for domestic travel.

Yes they have to lower their prices and get them planes full no matter what.

What profit do they make with flying empty seats around the world? Exactly nothing!

Thai can be the airline who sells all empty seats for half price if booked 2 days before departure. Then sure all planes will be full instead of half empty. Last minute booking new style.

Or Thai can be the first airline where you can bring 40kg luggage instead of 20 or 30. Or give some free hotelvouchers or free tickets for all national parks, free taxi trip vouchers, free rivercruise dinner at the chao praya, free cityguide for the first day, free VIP limoservice to Pattaya/Hua Hin. Free skytrain/metro for all tourists who fly business class. Just do something and stop thinking thailand style!

Just be creative or hire me (PM me if interested, i'm a marketing expert).

Edited March 18, 2015 by Thian

[natway09]

A lot of damage was done by using the old 747 rattlers on the BKK/London route for far too long.

People just went elsewhere.

Maybe a good advertising campaign to let folks know that now using A380's

[chooka]

Great, sell me some reasonably priced tickets, please.

Melbourne to Chiangmai return $625 AUD about 15,250 baht. All inclusive Just booked the wife's seat today.

[Ricardo]

Why are returntickets for 6 months much more expensive than tickets for 1 month?

Why are one way tickets almost same price as return tickets?

Both of those are common in the aviation-industry.

[Thian]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Why are returntickets for 6 months much more expensive than tickets for 1 month?

Why are one way tickets almost same price as return tickets?

Both of those are common in the aviation-industry.

I know but it's pure extortion. If Thai is the first airline with normal priced single way tickets then they will get busy.

Why all airlines have that policy? Did they make agreements about that?

[thelegend]

Old Down at Heel Aircraft, Pathetic Service and a complete lack of desire to respond to any complaint other than to excuse their poor behaviour, coupled with unrealistic pricing that in no way reflects the real value of what is on offer m ust make Thai A MUST MISS AIRLINE. Hence, I have just booked two tickets for family to Fly To Aus for a Holiday, on ANOTHER AIRLINE. Thai once sold me 3 or 4 tickets a year; Not any more .....I"d rather sit on the wing of an Aeroflot.

[MAZ3]

A lot of damage was done by using the old 747 rattlers on the BKK/London route for far too long.

People just went elsewhere.

Maybe a good advertising campaign to let folks know that now using A380's

The 747's may be getting on a bit,but they have 34 inch seat pitch.

The A380 only has 31(some 32),same as crappy BA.

Progress?

[newnative]

Get rid of all the dead weight and get price competitive on ALL flights--even if it means some short term losses. Any time I do a price search for air fares THAI never shows up on any of the first pages of airlines.

[trainman34014]

They just don't get it do they. People will put up with older aircraft and medium range service etc if the price is right. 'Thainess' blinds them and makes them believe they are superior to all others in such a way that they think we should all pay a premium to fly with the flag carrier of ' The Greatest Nation On Earth ' !

[JAG]

Literally just gone from this thread to investigate the price for a return flight Chiang Rai to Bangkok in April. The website has frozen, cant give me a price or flight times. Air Asia and Nok Air both come up with (near identical) prices.

Thai Airways need to undergo something a bit more drastic than sales restructuring I would suggest!

[Briggsy]

Quite a few posters are falling into the trap of believing that the board of THAI genuinely want to create a competitive, profitable airline. Nothing could be further from the truth. They wish to create an image that they are knowledgeable and capable managers setting about a tough job. In reality they need to structure the business so that they bolster their bank accounts, develop their political connections, don't upset their political masters and don't upset the very powerful unions and RTAF families living off THAI, all the while presenting an image of reforming the company whilst keeping the subsidies flowing from the treasury hidden from the public view.

[bim]

A lot of damage was done by using the old 747 rattlers on the BKK/London route for far too long.

People just went elsewhere.

Maybe a good advertising campaign to let folks know that now using A380's

Totally agree. I was one of them. 20 year old 747s. Yikkes

[natway09]

I think they need a restructure, but I also think you are all doing a bit Thai bashing.

I have been flying with Thai for 30+ years & have yet to have a really bad flight.

& I have had 5 flights (international) with FF miles & numerous upgrades.

Of course they are going to be more expensive than the "cheapees.

Just booked to Auckland (Thai direct) & compared it with Jetstar for a comparison ) Both cattle class

For full cabin service, meals, direct flight, 99% chance of being on time (at both ends I will pay 24% more.

Have not added anything to Jetstar for munchees, golf clubs , drinks or baggage yet

I will be home before you leave Sydney

[White Christmas13]

Great, sell me some reasonably priced tickets, please.

Melbourne to Chiangmai return $625 AUD about 15,250 baht. All inclusive Just booked the wife's seat today.

My wife just booked Perth-Bangkok for $ 579 about 14500 baht this is non stop

Jet star ,Scoot,Tiger Air Asia dearer and long lay overs in Singapore up to 12 hours

[trainman34014]

Great, sell me some reasonably priced tickets, please.

Melbourne to Chiangmai return $625 AUD about 15,250 baht. All inclusive Just booked the wife's seat today.

My wife just booked Perth-Bangkok for $ 579 about 14500 baht this is non stop

Jet star ,Scoot,Tiger Air Asia dearer and long lay overs in Singapore up to 12 hours

Try getting prices anywhere near that from the Thai end, more likely at least double.

[tomacht8]

"The company will employ experts, perhaps outsiders, to help boost sales. We predict the average [passenger] load factor will increase from 70 per cent last year to 80 per cent this year [as a result], a similar level to many other airlines," THAI president Charamporn Jotikasthira said yesterday.

The number of the average passenger load factor has little relevance.

If you dish out free flights then you can have a 100% passenger load factor.

Better to use the average passenger paid load factor.

or even better the

average revenue per seat index = Total revenue per flight / number of seats for a particular route

If then exists a very good cost accounting system, is it possible to say which flights / routes are profitable and which are not.

Only with good data, one can say on which routes can be made pricing policy, where costs must be down,
or on which routes must be aircraft and / or the intensity changed.

This is the primary task of a top management.

Traditionally Thai Airways is struggling with the advice from external experts (outsiders).

Look for example at Emirates, Qatar, Etihad. They committed many experts in the past, at the flight deck,
in the flight operations, in the cabin, on the ground, in the maintenance and in the EDP.

In the long-haul sector, the Arab airlines win over, in the short distances sector Thai struggles with budget airlines,
in the cargo section they lose, in the maintenance they have no competence
and internal to many people on the payroll plus management problems.

But after four years of losses in a row, yes one should not give up the hope.