THAI to reduce international and regional flights to cut costs

[Lowriesuzanne]

I'm scared. I depend on Thai Airways to transport me and my puppy from LAX-Seoul-BKK-Chiang Mai. Yes the trip is much too long but other Asian Airlines will not accept my puppy. They don't transport dogs anymore. The planes are packed. Not an empty seat. Los Angeles is the second biggest Thai city so I do not understand why they would shut down the route.

[thaibeachlovers]

Think how much they could save if they shut it down completely.

Why would you want to do that? I've used it for many years without complaint. If I had to use some other crappy airline, I'd end up have to do a stop off somewhere instead of a direct flight- no thanks.

Leg room on Thai cattle class is excellent too.

What they should be doing is stopping all the freebies for certain people.

[spidermike007]

The state should simply admit defeat. How many state run airlines are profitable? Just sell the airline to the private sector. Or hire a competent CEO from abroad. Not a local. Something needs to be done. Many airlines are posting record profits. What does this say about Thai? The very first thing that should be done, is to start offering competitive fairs. Nobody flies that airline because they think it is very special. Cathay, Singapore, maybe. Not Thai. Not for a long time.

[Lowriesuzanne]

It's not mismanagement... it is unfair price slashing by all the Asian airline competitors. $777 RT LAX-BKK on China Airlines (Taiwan). Who can compete with a national airlines desire to grab market share?

[toenail]

I'm scared. I depend on Thai Airways to transport me and my puppy from LAX-Seoul-BKK-Chiang Mai. Yes the trip is much too long but other Asian Airlines will not accept my puppy. They don't transport dogs anymore. The planes are packed. Not an empty seat. Los Angeles is the second biggest Thai city so I do not understand why they would shut down the route.

Delta Air does, you have to reserve a space in the cargo area (which is heated) and cost extra money ahead of time. To fly a dog on board, the doggie carrier has to fit under the seat and they allow only so many pets on board. If you have been able to fly your dear puppy free on Thai Airlines it is because you had connections. (Flying around the world with a pet is not easy, you have to get the vet papers in order showing the proper shots and all..and stamped within a time limit, find which airlines that will transport pets with you, reserve a cargo space for the dog/cat or on board, see if the pet will be quarintined or not when you land.... flying with kids is easier. )

[hawker9000]

I'm scared. I depend on Thai Airways to transport me and my puppy from LAX-Seoul-BKK-Chiang Mai. Yes the trip is much too long but other Asian Airlines will not accept my puppy. They don't transport dogs anymore. The planes are packed. Not an empty seat. Los Angeles is the second biggest Thai city so I do not understand why they would shut down the route.

That an airline fills its planes to capacity and STILL can't turn a profit, speaks volumes about the management doing the planning and running the operation ... Cutting flights (i.e., choosing NOT to do business ...) may cut some losses but isn't the solution to the real problem. Excuses from such a management shouldn't be confused with expert assessments.

Edited July 27, 2015 by hawker9000

[Geordie59]

Sad to see what was one of the best airlines in the world 25 years ago come to this.
Poor management, high prices and too many freebies has eroded service and performance to the extent that I only fly Thai when there is no other option.

[Guest]

I will say that if this is the result of operations with cheap fuel, I really do not see how they can survive the eventual push back up in operating costs.

[thelegend]

Seems an unwise action, but what puzzles me is that Thai Universities are still recuiting students for Flight Attendants courses for jobs that just do not seem to be there. My teen daughter was offered a place last week but after a short discussion rejected it outright ......time for a realistic appraisal of the whole shooting match..... certainly most unfair to boost hope of kids when there is already an obvious massive oversupply. Thailand you can do better..

[klauskunkel]

Do they have a special "University of Mismanagement" here?

Yes, they do, it's the "Do-You-Know-My-Daddy University Bangkok"

[asdecas]

Seems to me that Thai is only now beginning to face up properly to the dilemma that most Western, state-owned airlines faced in the past two or three decades; how to maintain relevance and become efficient in a changed aviation environment.

The market and the macro-environment have altered out of all recognition since the '80s: regional budget airlines with rock-bottom fares; exponential growth in passenger numbers as Asians in particular have for the first time the opportunity to fly; the dismantling of entrenched work practices and corporate culture; incorporation of online and technical solutions.

All airlines have had to shape up or ship out, and Thai is belatedly attempting to do so. First and foremost, they need to ditch the idea that the cherished image of Thai, so carefully nurtured over so many years, will carry them through these days. It won't, and they need to rebuild from scratch.

[thaibeachlovers]

If they were to follow Branson's lead ( he was going to have beds on board for couples- don't know if it's happened yet ) and introduce "massage" girls ( with happy endings- but don't say anything about that ), they would corner the market for single men flying to LOS .

[GiantFan]

TG 665.

yesterday, from Shanghai to Bangkok.

We stayed in the airplane waiting for 4 hours before it took of to Bangkok, only information been given 'Queing for departure".

Traveling economic class no option to charge phone (USB), bad service, bad food (dry bread, vegetable no taste, small wine glass, salad 7 small prawns no dressing or sauce) and after 4 hours on a full and hot airplane bad smell.

Should arrive 21:00 in Bangkok, arrived 01:10.

No smile for me yesterday, and not again.

We have had Chinese Air Force drills overhead for the last few days in the afternoon.

Shuts down the airspace. Unaware of any other major airport that continuously suffers

from this?

[frozin1]

I stopped flying Thai when they dropped the direct LAX-BKK flight. I was willing to pay a premium to avoid a layover. Once they rerouted through Seoul they lost the only inducement for me to fly with them. Now I fly EVA through Taiwan as they meet my needs for departure/arrival times with a minimal layover. EVA has a great lounge in Taiwan and the one in Bangkok is okay as well.

Perhaps Thai is seeking to avoid the extra scrutiny they will get from the FAA when they (most likely) fail the latest inspection. It would be embarrassing for them to have aircraft grounded for maintenance purposes by an agency of the US Government. I'm not familiar with the EU airworthiness standards, but hard to believe they will be allowed to fly into an EU country without increased monitoring of their aircraft.

Thai will need to concentrate on countries that are willing to turn a blind eye. Russia and China are both a source for the high quality tourists they want to target and fit that profile. The only concern with that approach is that with the meltdown of the Russian economy and the recent free-fall in the Chinese stock market people will be looking to cut discretionary spending. Vacations are usually the first thing people will eliminate from their personal budgets.

F1

[LomSak27]

Monty1412 posted

However it is encouraging that they are looking more at the higher profit better quality tourist European market and one hopes that their strategic plan is focussed on this market

"plans to cut 1,401 jobs through voluntary retirement this year and suspend its loss-making flights to Los Angeles and Rome"

Last I heard Rome is in Europe. I can understand the deep seated cultural need to include a condescending snot shot but please facts not piss takes.

[Pacifica]

THAI's BKK-LAX route was a loser from the get-go. They charged twice as much for the flight than any other carrier, with the only selling point being that it was a non-stop flight. It should have been scrapped years ago.

I flew LAX - BKK twice, in 1999 and 2000. I think that was during the Amazing Thailand campaign. Back then the price was excellent and the connection flight (SFO to LAX with UA) was even included. But I agree, in the last couple of years the TG fares have been utterly overpriced.

[sawadee1947]

Think how much they could save if they shut it down completely.

well, there were already some EU airline to buy Thai Airways. I remember there was an offer from Lufthansa. Maybe they should have done that last year when they came into troubles the first time.

[Jimlove]

"plans to cut 1,401 jobs through voluntary retirement this year and suspend its loss-making flights to Los Angeles and Rome"

1,401 jobs ... What a number to throw out, who is the last one to get sacked ... ?

Cutting US route trying to save face before FAA are gonna whip their arse - massive failure in safety and procedures ...

loss-making flights : Try to look at other Airlines and how they manage - if management not Work then hire another and that could also be a foreigner even tho you would lose your face ...

Cutting routes to save Money .... Titanic and deckchairs comes to mind ...

Thai Airways have been in a death-spiral for some time, just let it crash and burn ...

[SOTIRIOS]

...'about'......300 million baht....a year.....on each route...

...that's one way to NOT mention the total loss.....

...10 routes...could be in excess ot 30 billion baht then....

....when a business....prices itself....out of business...so it can cover the perverse....'annual bonuses'....meted out,,,,

...what is the difference between that and embezzlement.....and why has this been allowed to go on for so long....

...a 'bonus' is given for a job well done....or when business is so good that there is enough of a surplus of funds....

...otherwise...it is insanity to pay out 'annual bonuses equivalent to 1x 2x 3x someone's annual salary......!!!

...some people might use another word...

[kannot]

Do they have a special "University of Mismanagement" here?

Hub of

[TallGuyJohninBKK]

THAI's BKK-LAX route was a loser from the get-go. They charged twice as much for the flight than any other carrier, with the only selling point being that it was a non-stop flight. It should have been scrapped years ago.

But it's no longer nonstop... As the aircraft goes to Seoul for stop over

Ya... they cut the non-stop part of the LAX route some years back...

But more to the point, the ThaiPBS report says they're "reducing" service to Los Angeles.

But the subsequent Reuters report says they're eliminating service to LAX, and thus to the U.S., since that was their last U.S. route.

Reducing and eliminating aren't quite the same!!!

[needforspeed]

TG 665.

yesterday, from Shanghai to Bangkok.

We stayed in the airplane waiting for 4 hours before it took of to Bangkok, only information been given 'Queing for departure".

Traveling economic class no option to charge phone (USB), bad service, bad food (dry bread, vegetable no taste, small wine glass, salad 7 small prawns no dressing or sauce) and after 4 hours on a full and hot airplane bad smell.

Should arrive 21:00 in Bangkok, arrived 01:10.

No smile for me yesterday, and not again.

We have had Chinese Air Force drills overhead for the last few days in the afternoon.

Shuts down the airspace. Unaware of any other major airport that continuously suffers

from this?

Yes i know that happen sometimes, wasnt the case yesterday as other airlines landed and took off.

[TallGuyJohninBKK]

But I feel it is due to poor management and instead of getting rid of the Thai employees at the bottom, the company should start at the top and not be afraid to hire expats to do the high-tech jobs until they can effeciently run the business again by themselves. (part of the problem is the culture which is always into saving face instead of facing reality.)

Notice how the OP news report said the impacted employees would either be transferred to the home office or laid off...

Guess who's going to be transferred to the home office? And guess who's going to be laid off???

[Monkeyrobot]

Send the board directors in for attitude adjustment, if they don't fix there maintenance issues they wont be flying anywhere soon.

[hansnl]

Yea, they are "pulling out" of the American market because the US is banning them because of safety concerns. That is the real story.

Now if the government would let a private entity run the railroads as well as the airline they might actually get better. But the unions are strong. The government is between a rock and a hard place.

Are you serious?

A private company or companies running railways?

Like in Britain, resulting in what journalists call "The Great British Rail Disaster?"

Like in the US, where Amtrak, a state owned company more or less, had to clear up the bloody mess the privateers made of passenger traffic?

Face reality, sir, railways can not and should not be used to favour "friends" with cushy jobs as CEO's of privatised state owned companies, resulting in less service, less safety, highter prices, and yes, more taxmoney sluiced through those marvellous bragging service mindedness, companies into the coffers of already overrich figures with no morality.

State owned railway companies are companies owned by the people.

Private companies should not own that.

in short, all passenger railway lines, wherever in the world, are not getting better, cheaper, safer or less draining on tax money after privatisation, to the contrary.

[needforspeed]

Send the board directors in for attitude adjustment, if they don't fix there maintenance issues they wont be flying anywhere soon.

Thats what i told the head off inflight crew yesterday.

That if contignue like this they dont need to change the seat covers stated 'Thai Airways 55 years"

He asked me why!!!!!!

[TallGuyJohninBKK]

Wow... read onto the end of the Reuters report on their own site:

Thai Airways still has 50 routes that are either loss-making or have low returns, the company said in a statement on Sunday.

And that's with jet fuel at current prices???

[TallGuyJohninBKK]

Yea, they are "pulling out" of the American market because the US is banning them because of safety concerns. That is the real story.

Thai Air's regulatory and safety issues, including with the FAA, MAY be part of their reason for apparently axing their LAX flights...

But, what you say above, isn't true. The U.S. isn't "banning" Thai Air about anything, nor would they. The most the U.S. FAA can normally do is refuse to allow a foreign airline to change existing service or add any new service. That wouldn't impact any of Thai Air's currently existing flights into the U.S.

That's what happens when the FAA finds that a foreign country (such as Thailand) is NOT complying with air regulatory and safety rules, and it's called getting dropped into Category 2 (non compliance). And that hasn't even happened yet, although it may happen a few months down the road if the Thai DCA doesn't clean up their act within the 60 day time period that the FAA has given them.

Interestingly, though, the FAA doesn't ban individual airlines, as I explained above. However, from what I've read, the EU aviation regulators DO blacklist individual airlines. And if the Thai DCA fails their FAA review, there's speculation that an EU review could follow and that their ax could fall on Thai Air down the road a ways.... And that would certainly put the hurt on their Europe expansion plans.

Edited July 27, 2015 by TallGuyJohninBKK

[arrowsdawdle]

Yea, they are "pulling out" of the American market because the US is banning them because of safety concerns. That is the real story.

Now if the government would let a private entity run the railroads as well as the airline they might actually get better. But the unions are strong. The government is between a rock and a hard place.

....between a rock and a hard place lost face.

[toonsai]

Thai is at the image of the country. It was great 20 years ago and it has been going down the hill since.

Mismanagement, greed, corruption. It summarizes well THAI and Thailand.