Thai Airways International: Old habits die hard

[webfact]

Thai Airways International: Old habits die hard
BY JAMES LEE, ETN THAILAND CORRESPONDENT

BANGKOK: -- According to local media, some execs at Thai Airways are fearing to see foreign consultants come to help Thai Airways… as they might leak information to the competition.

This story could generate a smile if Thai Airways International was not in such a dire financial situation. Looking at recent data about the financial positions of Southeast Asian major carriers by CAPA (Centre for Asia Pacific Aviation), Thai Airways International had the worst financial performance of any ASEAN state carrier, losing US$523 million last year. This represented 57% of the total of accumulated losses for 17 carriers in Southeast Asia.

While Thai Airways’ President Charamporn Jotikasthira is trying to fix the multiple problems that the carrier faces – from ageing aircraft to an overstaffed administration, as well as the absence of a sales strategy - the President is now under fire by former Thai airline executives who explain about the sticky situation in the President’s hiring of the foreign consultant firm, Bain & Company, to fix the airline’s woes.

According to the Bangkok Post, some former executives expressed their worries about the cancellation of some routes. But above that, they expressed their high concern about the fact that a Bain & Company executive worked before for Temasek Holdings in Singapore, which owns Singapore Airlines. They expressed concerns about possible leaks to due to the affiliation. Looking at Singapore Airlines, which last year managed to write off a profit of US$166 million, it is true that the half billion dollars of losses at Thai Airways International is a model to follow.

Full story: http://www.eturbonews.com/58155/thai-airways-international-old-habits-die-hard

-- eTN 2015-04-27

[trogers]

I doubt foreign consultants have much secret to learn from THAI except what not to do...

[JAG]

If they are "former" executives, firstly they are likely responsible for many of the problems Thai face, and secondly they are no longer in post.

Perhaps they should be ever so politely told to take a running **** at a rolling donut?

[Chao Lao Beach]

Look at the fear of making a profit these folks have. THAI wil continue to be bailed out by the Gov and continue to loose money.

[Just1Voice]

Let's see, Singapore Airlines showed a PROFIT of US $166 million last year.

THAI showed a LOSS of nearly half a billion dollars.

And the people at THAI are worried that the new consultants might leak Thai secrets to Singapore????

Oh, yeah, that makes a lot of sense.

[tx22cb]

That's a new one - blame the foreigners even before they arrive/start!

They talk as if Thai employees never accept bribes to do unethical things ... like giving secrets away for the right price.

[ChrisY1]

The part of Thai society that brings them undone so often......having to respect the word of elders and those senior to oneself.....

What these old members are likely scared of is the consultants finding evidence of corruption and wrongdoing ...by them!!

[patekatek]

It's likely the fired executives of THAI are more afraid of outside consultants uncovering the mismanagement under the old administration and exposing the corruption that has plagued THAI for so long. Maybe some assets may be in jeopardy of being taken from the "good old boys".

[Chang_paarp]

Would that be the same Temasek Holdings that bought AIS from the Shin clan?

[konying]

I am guessing their worry is that they would loose all their perks which they are still getting even though being ex.

I am sure their mates who are current execs are also worried loosing their jobs and perks.

Usually changes start with cutting off the useless fat from within.

[Andrew65]

If they are "former" executives, firstly they are likely responsible for many of the problems Thai face, and secondly they are no longer in post.

Perhaps they should be ever so politely told to take a running **** at a rolling donut?

....they're probably just "inactive" !!

[madmitch]

Good article. I like a bit of sarcasm in journalism!

I expect the execs are worried that they and their Government cronies may have their travel perks curtailed after the consultants analyse the figures.

[Thaddeus]

I read the OP and was going to comment, but then read the replies and realised I didn't need to.

[NanLaew]

Oh... the face.... the face.....

with acknowledgment to Colonel Walter E. Kurtz

[jacko45k]

That's a new one - blame the foreigners even before they arrive/start!

They talk as if Thai employees never accept bribes to do unethical things ... like giving secrets away for the right price.

Well hardly a new idea here.....

Perhaps the foreigners will reveal even more skeletons within Thai International.

[blueyeshk]

Thai airways is just a mirror what's wrong with rest

[rametindallas]

Would that be the same Temasek Holdings that bought AIS from the Shin clan?

yes

Temasek Holdings Private Limited (abbreviated as Temasek) is an investment company owned by the Government of Singapore. Temasek is commonly referred to as a sovereign wealth fund.

http://en.wikipedia.org/wiki/Temasek_Holdings

[EyesWideOpen]

Good article. I like a bit of sarcasm in journalism!

I expect the execs are worried that they and their Government cronies may have their travel perks curtailed after the consultants analyse the figures.

No need to worry about an uncertain future. If outside people are brought

in to fix the woes of Thai Airways, these insane travel perks will be the very

first thing to be chopped. No profit in flying plane full of deadbeats.....

[maidee]

leak information ?

as in : overinflated prices VS competition ?

old airplanes, bad service ?

[smedly]

BANGKOK: -- According to local media, some execs at Thai Airways are fearing to see foreign consultants come to help Thai Airways… as they might leak information to the competition.

The last part should read - as they might uncover what we have really been doing with the tax payers money

[falangjim]

" ...ageing aircraft to an overstaffed administration, as well as the absence of a sales strategy..."

Thais don't plan to fail, they fail to plan.

[scorecard]

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

I doubt foreign consultants have much secret to learn from THAI except what not to do...

Plus:

- Any guarantee that past or present Thai directors and senior managers of Thai will not leak anything to the competition? NO!

- Most if not all big international management consultants guard their reputation very carefully, they don't want a reputation as a leaky agency. This would severely damage their reputation and would severely limit their chances of winning future contracts, and therefore limit revenues.

Plus:

- In many industries many companies including the airline industry are quite ruthless and have little hesitation to play hard ball. If the competitors really wanted information about Thai they could easily get it.

Further, pretty much all high performing companies, any industry (unless it's a monopoly) very regularly discuss and analyze:

- What are the strengths and weaknesses of our competitors? (And they have highly capable small teams to get this information and ensure it's

up to date and accurate.)

- What are the competitive advantages of our competitors, etc.

Edited April 27, 2015 by scorecard

[Strangebrew]

It is no secret, either you hire complete idiots or your skimming profits, Now with that said you think others may copy your lead? I seriously doubt that Somchai. It is amazing you can find your butt with both hands because you fail in running an airline. Must use same model as BOT deny, deny, deny then blame farangs.

[boomerangutang]

I doubt foreign consultants have much secret to learn from THAI except what not to do...

Right. Thai Airways might have some secrets stolen, like how they serve orange colored sugar water which they call 'orange juice.' Or how they turn their cabin announcements up to teeth-jarring high volume - which is an awful way to wake up from a nap. Or how they continue to give already-rich VIP's (and their families) free seats in 1st Class. Hey, I'd lose money too, if I had a biz which continually gave away freebies to very rich people.

[Nbarch]

“Political interference, corruption and abuse of authority have been persistent issues in THAI's management. Speaking at the World Economic Forum on East Asia, former president Piyasvasti Amranand, who had been abruptly dismissed in May 2012, cited THAI's procurement of A340-500s (three of which had since been grounded) as examples of mismanagement influenced by corruption and political meddling, and resulting in losses to the company's operations”

The quote above which pretty much sums up Thai Airways problems and if the PM is serious about corruption, he could order government officials to stay well away and order the management, with outside consultants, to sort out the problems. Or is it OK to waste millions of dollars of public funds, as long as it is not connected with rice.

[steelepulse]

Comedy gold. Thread should be titled " How not to run an airline" and charge these other airlines money on what not to do.

[steveyinasia]

What would they possibly leak? How NOT to run an airline?

[Sealbash]

Perhaps they learned from the over 100 UK airlines that are now defunct? A high percentage of them from Bankruptcy?

Or the over 50 USA airlines that went bankrupt?

Or the over 200 airlines now defunct in Europe?

I do not believe this is unique to Thai Airlines

[klauskunkel]

BANGKOK: -- According to local media, some execs at Thai Airways are fearing to see foreign consultants come to help Thai Airways… as they might leak information to the competition

...as they might reveal the incompetence and mismanagement of those execs.

[fred Kubasa]

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

If they are "former" executives, firstly they are likely responsible for many of the problems Thai face, and secondly they are no longer in post.

Perhaps they should be ever so politely told to take a running **** at a rolling donut?

....they're probably just "inactive" !!

They became " inactive "the first day on the job !