Thai Airways to End Cargo Services and Downsize its Aircraft Fleet

[Jacob Maslow]

Thai Airways is making major changes to its services and aircraft fleet. Restructuring within the company will put an end to its freighter operations. Next week, the airline will launch its final two 747-400BCF services.

The company will also stop A340-600 services. Four A330-300 aircrafts will also be decommissioned. By July, Thai Airways hopes to sell 22 of its aircrafts.

The stoppage of services and decommissioning of planes comes amidst a series of losses for the company. The Thai carrier has approximately $5.9bn in debts (the highest in the region) and has seen 7 straight months of losses.

The company’s restructuring is being overseen by Thai Airways president Charumporn Jotikasthira. Charumporn is expected to cut capacity by 20%, sell non-core assets and reduce the fleet size from 101 to 77 aircraft by the end of 2015. As part of the downsizing, the company will be phasing out A340s and 747s. Plans to close routes to Moscow, Johannesburg and Madrid have also been announced.

Thai Airways was once a leader in the cargo market, but the company has stopped and started its freight services multiple times in recent years. The carrier was the first to use a 777F in hopes of returning to freighters. But its losses are partly due to the fact that air freight exports have declined. BFS (Bangkok Flight Services) stated that exports were down 4% in February year-over-year.

The decision to stop cargo services gives other competitors, like Hong Kong’s Cathay Pacific, an advantage. Cathay Pacific is investing heavily in cargo despite Thai Airways and IAG stopping their services. Other airlines, like AF-KLM and Singapore Airlines, have decided not to re-invest.

While Thai Airways has seen consecutive losses, Cathay Pacific has seen an increased profit of 20%. Cargo revenues were up in the middle of 2014, which provided the company with a strong fourth quarter.

-- 2015-03-24

[NongKhaiKid]

How about downsizing, completely, al those perks and freebies for those and such as those ?

[BSJ]

Without trimming the fat within the corporate structure cutting services will just be a token saving.

[realenglish1]

The reality of flying has changed dramatically over the last few years. I have said it before and will keep on saying it. LOWER YOUR FARES then people will come ,

Why should I pay 15000 baht to fly to HK when I can take one of many other carriers for under 10,000

This is your mail problem but for some reason you will not face it . You just keep charging your outrageous fees and hope people will come because you bought new equipment.

Not a chance You are so out of touch with the consumer it is laughable You are more worried about saving face then saving the airline

Edited March 24, 2015 by realenglish1

[toybits]

Clearly the first step has been make in leading the country to being a high income economy!

[ezzra]

Sack at least 30%, good for nothing, union protected, loafing stuff, drop your fares

by just as much and you will be flying to near capacity in no time....

[ginjag]

The reality of flying has changed dramatically over the last few years. I have said it before and will keep on saying it. LOWER YOUR FARES then people will come ,

Why should I pay 15000 baht to fly to HK when I can take one of many other carriers for under 10,000

This is your mail problem but for some reason you will not face it . You just keep charging your outrageous fees and hope people will come because you bought new equipment.

Not a chance You are so out of touch with the consumer it is laughable You are more worried about saving face then saving the airline

I have said the same thing for YEARS, the company is a complete shambles, could not organize a raffle. Cathay 20% up, with thriving cargo business. The selling of some of the Thai fleet is repeating it's self again, anyone can sell anything if the price is low enough--for gods sake sell at below the going price--JUST GET RID along with ALL the hangers-on within the company. Thai is a joke now, 30 years ago the best of the rest, Packed full London to Bangkok, near every flight. then super service. the right price.

[scorecard]

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

The reality of flying has changed dramatically over the last few years. I have said it before and will keep on saying it. LOWER YOUR FARES then people will come ,

Why should I pay 15000 baht to fly to HK when I can take one of many other carriers for under 10,000

This is your mail problem but for some reason you will not face it . You just keep charging your outrageous fees and hope people will come because you bought new equipment.

Not a chance You are so out of touch with the consumer it is laughable alt=cheesy.gif width=32 height=20> You are more worried about saving face then saving the airline

Another example: On Thai, Chiang Mai to Suvanabhumi to Ho Chi Minh City and return to Chiang Mai just over 41,000Baht.

Some searching and I found AirAsia Chiang Mai to Bkk to Ho Chi Mien City and return to Chiang Mai for 8,200 Baht and including extra 20K of luggage on all 4 legs of the trip.

And Thai never seem to learn about on board service. Friend just complained bitterly about rudeness, flying Sydney to swampy with Thai wife in business class, staff just ignored her requests, didn't even try to listen to her. One hostess even rudely asked the farang in English 'what does she want?' I know this couple well, the lady concerned is mid thirties, always well dressed and groomed, always polite, speaks excellent English has a professional position. Certainly no floosy.

Friend says he asked to speak to the cabin supervisor but got the abrupt response 'too busy'.

They've lost that customer.

Edited March 24, 2015 by scorecard

[trogers]

The image of a bloated carcass without arms and legs comes to mind...?

[brommers]

It is easy to criticise the onboard crew. And some deserve to be, but it must be very demoralising to work in an organisation with a bloated executive that is stuffed with political appointees who have little to offer but make giant salaries. That is where the core problem lies.

[rakman]

Good luck selling the planes.. Park the 380s while you're at it.

[dddave]

Three years ago, when one of the landing gear on a Thai Airways flight collapsed while landing at Survanahbhumi, the only decision anybody in middle management made was to immediately paint over the "THAI" tail logo with black paint.

Evacuated passengers waited almost 45 minutes to be picked up by buses on the tarmac, then had to wait 30 minutes more to be allowed to disembark the bus at the terminal.

During emergency evacuations passengers are never allowed to carry personal belongings such as backpacks or handbags but that did not stop immigration staff from haranguing them for not having their passports.

When the evacuated passengers were finally allowed to enter the terminal, there were no medical or other emergency personnel present...not even bottles of water.

This incident at THAI's home airport demonstrated just how paralyzed and useless THAI middle management is...nobody was willing to make a decision of any kind for the benefit of passengers .....to do so would be to admit something bad had happened and that would mean loss of face.

Edited March 24, 2015 by dddave

[Searat7]

They had better find an empty airport to park all of these planes as Don Muang is struggling with increasing volume and increase of THAI planes just parked there. Also the domestic terminal there will open soon.

Malyasian Airlines went out and found an experienced airline turanaround specialisit (farang) to turn around their airline but THAI keeps hiring Thais with no airline experience. I don't see the losses ending soon.

[TBWG]

The big problem for Thai Airways is that it has to compete in an international market against world class operators.

So many Thai businesses are monopolies with no concern about quality or standard of service, consequently they have no concept of competition and their culture will not allow them to admit it.

Aviation is a unique environment and successful airlines have CEO's that have spent a lifetime in the business, not someones nephew who has bought the position. Afraid that until the position is filled on merit by someone with a history of rescuing ailing airlines then the future is bleak!

TBWG

[jerojero]

Thai Airways is a reflection of Thai government as a whole. Top heavy, heads in the sand, inflated self image, thumb noses at foreign ways. Now well into a financial crisis, the company taking slash and burn approach. Wrong!

[Krungbin]

You have a point. But the "experienced airline turanaround specialist" (and he is indeed very good) was hired when the airline was supposed to be privatized. Since, the government of Malaysia has decided not to privatize anymore...

And I wish the "turanaround specialist" good luck to turn MAS around...Trim the fat, cancel unprofitable international routes, reduce unprofitable national services, sort out the staff problems between the Malaysian Malays and Malaysian Chinese, clip the wings of the unions...Planning it all will be easier than doing it!

They had better find an empty airport to park all of these planes as Don Muang is struggling with increasing volume and increase of THAI planes just parked there. Also the domestic terminal there will open soon.

Malyasian Airlines went out and found an experienced airline turanaround specialisit (farang) to turn around their airline but THAI keeps hiring Thais with no airline experience. I don't see the losses ending soon.

[baneko]

I love Thai Airways......they are the best airline Ive never flown with..

[Jdiddy]

Giving them a go for the 1st time in May

I got bangkok-chiangmai return for $3 when i added it on to the syd-bkk flight, it is more about flying on the 744 for the last time before they go completely extinct though

Edited March 24, 2015 by Jdiddy

[h90]

Three years ago, when one of the landing gear on a Thai Airways flight collapsed while landing at Survanahbhumi, the only decision anybody in middle management made was to immediately paint over the "THAI" tail logo with black paint.

Evacuated passengers waited almost 45 minutes to be picked up by buses on the tarmac, then had to wait 30 minutes more to be allowed to disembark the bus at the terminal.

During emergency evacuations passengers are never allowed to carry personal belongings such as backpacks or handbags but that did not stop immigration staff from haranguing them for not having their passports.

When the evacuated passengers were finally allowed to enter the terminal, there were no medical or other emergency personnel present...not even bottles of water.

This incident at THAI's home airport demonstrated just how paralyzed and useless THAI middle management is...nobody was willing to make a decision of any kind for the benefit of passengers .....to do so would be to admit something bad had happened and that would mean loss of face.

Surprise that they didn't shoot them so they can't tell about the problems....

[scorecard]

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

It is easy to criticise the onboard crew. And some deserve to be, but it must be very demoralising to work in an organisation with a bloated executive that is stuffed with political appointees who have little to offer but make giant salaries. That is where the core problem lies.

Sorry but that's no excuse.

It's in everybody's interests to give good service and preserve your job.

Another point, Thai cabin crew are paid well above many other airlines both in salary and allowance.

If you don't want to give service then you shouldn't be working in this industry. And nobody is stopping them from leaving.

[15Peter20]

The image of a bloated carcass without arms and legs comes to mind...?

Take 2 aspirin and lie down in a quiet, darkened room.

[Soutpeel]

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

The reality of flying has changed dramatically over the last few years. I have said it before and will keep on saying it. LOWER YOUR FARES then people will come ,

Why should I pay 15000 baht to fly to HK when I can take one of many other carriers for under 10,000

This is your mail problem but for some reason you will not face it . You just keep charging your outrageous fees and hope people will come because you bought new equipment.

Not a chance You are so out of touch with the consumer it is laughable alt=cheesy.gif width=32 height=20> You are more worried about saving face then saving the airline

Another example: On Thai, Chiang Mai to Suvanabhumi to Ho Chi Minh City and return to Chiang Mai just over 41,000Baht.

Some searching and I found AirAsia Chiang Mai to Bkk to Ho Chi Mien City and return to Chiang Mai for 8,200 Baht and including extra 20K of luggage on all 4 legs of the trip.

And Thai never seem to learn about on board service. Friend just complained bitterly about rudeness, flying Sydney to swampy with Thai wife in business class, staff just ignored her requests, didn't even try to listen to her. One hostess even rudely asked the farang in English 'what does she want?' I know this couple well, the lady concerned is mid thirties, always well dressed and groomed, always polite, speaks excellent English has a professional position. Certainly no floosy.

Friend says he asked to speak to the cabin supervisor but got the abrupt response 'too busy'.

They've lost that customer.

I take your point, but even if she was a floosy, someone has paid for the service in business class,

should she treated rudely ?, or are you saying if she was a floosy it would be ok to treat the lady rudely ?

because if you are then your applying the same mentality as the TG crew

[baboon]

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

The reality of flying has changed dramatically over the last few years. I have said it before and will keep on saying it. LOWER YOUR FARES then people will come ,

Why should I pay 15000 baht to fly to HK when I can take one of many other carriers for under 10,000

This is your mail problem but for some reason you will not face it . You just keep charging your outrageous fees and hope people will come because you bought new equipment.

Not a chance You are so out of touch with the consumer it is laughable alt=cheesy.gif width=32 height=20> You are more worried about saving face then saving the airline

Another example: On Thai, Chiang Mai to Suvanabhumi to Ho Chi Minh City and return to Chiang Mai just over 41,000Baht.

Some searching and I found AirAsia Chiang Mai to Bkk to Ho Chi Mien City and return to Chiang Mai for 8,200 Baht and including extra 20K of luggage on all 4 legs of the trip.

I presume THAI thought you were looking to charter your own plane for that price...

[mango66]

What agenui on Manager this is !

Selling the tools with which you work !!!

He propabyl have plan till 2017 to sell all plains, so no loss any more;

They close down AFS - the workers will get inactiv jobs in HQ, they can't fire them,

as they are from very HIGH profile Thai family and relatives;

reduce airplanes for 30% means just you will get more grandma stuardesses in your Cabine :-)))

Yes, flight service be cancelled for Johannesbourg, Madrid and Moskva,

BUT also for Germany and Frankfurt the reduced 50% after May !!

I have used Thai for more than 10 years exclusively a 5 times per year FRA BKK and than

there around for businesstrips ( SGP, Colombo, Taiwan, Kathmandu, Dakar )

But my current 4 flights and reservation are not " NOT for Thai any more !

( Austrian AF, Turkis i will check too, just got a ticket from Austria to BKK for 450,- Euro -

is 15.000,- thb !! Thai airways cheapest would be about 1.000,- Eur or 35.000,- thb;

Thai aw is not downgrading.

Thai Airways goes DOWN straight ahead !!

[Ricardo]

Good luck selling the planes.. Park the 380s while you're at it.

"Park the 380s while you're at it."

Why ?

[colinneil]

Thai airways will never show a profit until they learn that farangs who know about airline business are appointed to run the airline.

Thai airlines only employ connected people ( who know jack s..t ) about how things should be done.

Look even the bank of England employed a Canadian to run the bank why? because he was the best person for the job.

Only Thai people know how to do things.All farangs are stupid attitude is a big problem, until that changes ( which it wont ) things will not get better.

Thai way something is not paying, so up the price !! crazy? yes bloody crazy.

[trogers]

The image of a bloated carcass without arms and legs comes to mind...?

Take 2 aspirin and lie down in a quiet, darkened room.

What? And be haunted by the spirits of TG past, present and future?

[thaibeachlovers]

Three years ago, when one of the landing gear on a Thai Airways flight collapsed while landing at Survanahbhumi, the only decision anybody in middle management made was to immediately paint over the "THAI" tail logo with black paint.

Evacuated passengers waited almost 45 minutes to be picked up by buses on the tarmac, then had to wait 30 minutes more to be allowed to disembark the bus at the terminal.

During emergency evacuations passengers are never allowed to carry personal belongings such as backpacks or handbags but that did not stop immigration staff from haranguing them for not having their passports.

When the evacuated passengers were finally allowed to enter the terminal, there were no medical or other emergency personnel present...not even bottles of water.

This incident at THAI's home airport demonstrated just how paralyzed and useless THAI middle management is...nobody was willing to make a decision of any kind for the benefit of passengers .....to do so would be to admit something bad had happened and that would mean loss of face.

Not disagreeing with most of your post, but passengers should certainly have their passport on them, not in a bag. On this one I'm with immigration.

People seem to assume that air travel is 100% safe and reliable, when that is obviously not the case- women wearing high heels while flying is a classic mistake.

[thaibeachlovers]

Thai airways will never show a profit until they learn that farangs who know about airline business are appointed to run the airline.

Thai airlines only employ connected people ( who know jack s..t ) about how things should be done.

Look even the bank of England employed a Canadian to run the bank why? because he was the best person for the job.

Only Thai people know how to do things.All farangs are stupid attitude is a big problem, until that changes ( which it wont ) things will not get better.

Thai way something is not paying, so up the price !! crazy? yes bloody crazy.

If that guy was the best qualified to run the Bank of England why is the British economy in the poo? It doesn't matter what industry it is, the west is run by the old boys clique.

That whole "best man for the job" is just BS that many get fooled into believing.

Last time I looked QANTAS was run by a whitey, and it's rubbish.

Edited March 24, 2015 by thaibeachlovers

[Skywalker69]

Please Jacob Maslow can you post a link?