Thai Airways head vows to push company's transformation

[webfact]

Thai Airways head vows to push company's transformation
SIRIVISH TOOMGUM
THE NATION

BANGKOK: -- THAI AIRWAYS International (THAI) will speed up its cost reductions and revenue improvements to return the national carrier to sustainable profitability, THAI president Charamporn Jotikasthira said.

He made the remark after the THAI board met with the State Enterprise Policy Committee on Monday.

Charamporn said THAI had seen some progress with the overall transformation plan but it was still moving too slowly in its efforts to cut costs and improve revenue from commercial operations, so it would have to pick up the pace.

He added that other plans such as the sale of retired aircraft and flight reductions had been on track.

He said all departments had their own operational targets but some appeared to be taking too long to start implementing the turnaround programmes. This might be because the national flag carrier had never made such a large-scale transformation at such a fast pace before.

During the first quarter of 2015, THAI launched the transformation plan, with the first stage designed to stop the bleeding.

Taweesak Kor-anantakul, a member of the State Enterprise Policy Committee's sub-panel screening the state enterprises' problem-solving plans, said after the meeting with the THAI board on Monday that the committee had advised the board to communicate with the management that THAI was still in a critical situation.

He added that the THAI turnaround plan looked quite promising but as of the third quarter the company had still not achieved some targets, especially cost reductions. But some targets were achieved, including turning around the cargo operation from loss to profitability.

When Charamporn took over as the airline's president early this year, he kicked off a two-year programme to return THAI to profitability after years of chronic heavy losses. Recently, he said THAI aimed to achieve 70 per cent of the turn-around programme by January, 2016, meaning it would have returned to operating profitability around that time.

The overall programme should be completed in 2017.

Source: http://www.nationmultimedia.com/business/Thai-Airways-head-vows-to-push-companys-transforma-30271277.html

-- The Nation 2015-10-21

[Valentine]

Looks like some in Thai Airways fail to see the urgency with which they need to make the relevant changes or could it be they actually have to work now. There is still not a single Thai Airways exec who will talk about or release details on how much the carrier loses to all the free "VIP" tickets.

[Langsuan Man]

Another executive who thinks he can push a noodle...........

[Aussieroaming]

Wish they would hurry up, they used to be a good airline to fly with and were reasonably priced, not anymore

[ChrisY1]

It's going to be a monumental task to get this broken airline back to profitability........there's no doubt they need outside expertise to take control, which, if that happens, probably won't happen soon enough........but the govt. will continue to pour in more money....free flights will continue.....nepotism within the airline will continue........it's all akin to trying to turn manure into strawberry jam......

[waldroj]

Talk about The Nation applying the sugar-coating!

The key point in this useless bit of fluff are the two points made by Taweesak Kor-anantakul.

1. THAI was still in a critical situation.
2. As of the third quarter the company had still not achieved some targets, especially cost reductions.

As a “suffering” shareholder of this company, I believe they need to be more aggressive in reducing staff numbers. Not catering staff (as currently being targeted), but middle and upper management appointees please!

[BKKBrit]

Flying to London next week. Booked BA at Bht102,350 business with 3 bags of 96kgs baggage allowance.

TG - Bht128,500 and 2 bags of 40kgs.

Go figure.

[NCC1701A]

Posted Today, 04:04 2021.

Thai Airways head vows to push company's transformation

Edited October 21, 2015 by NCC1701A

[Eric Loh]

Thai airways is no different from the Malaysia Airlines. Bloated unproductive workforce, old aircrafts, poor financial decisions and most of all incompetent CEOs. Difference now is that MAS has finally realized that they need help even if that person is a foreigner. They hire Christopher Muller with no political baggage and alliance and a veteran in the airline industry. He is now given a hands free responsibility to revamp MAS. Just when will the Thai Airlines has the guts to wake up and realize that all previous local CEOs have failed in turning around the airline and all got their job due to their political allegiance and have no experience in this industry.

[trainman34014]

Nobody Thai who takes the job has the guts to do what is needed....reduce staff numbers by about at least 30%, which is the fastest way to reduce costs. If you want quick results you have to take the company by the balls and squeeze hard, painful for a year or two for many who will lose their coveted positions obtained by being 'connected' but the fastest way to turn the company around.

The free flights could be chopped in one sentence....but again, lack of guts !

[The Deerhunter]

Looks like some in Thai Airways fail to see the urgency with which they need to make the relevant changes or could it be they actually have to work now. There is still not a single Thai Airways exec who will talk about or release details on how much the carrier loses to all the free "VIP" tickets.

YES! Cost reduction goal #1. Slash the self-serving VIP freebies.

[callaway]

Just looked for flights back to Perth australia in February when I want to fly there. Malaysian Airlines are 19,471 baht and Thai Airlines are 18,680 baht. So they are being a bit competitive. Whatsmore Thai is a direct flight where as MAS is stop overs in Kuala Lumpur. So Thai are ok.

Edited October 21, 2015 by callaway

[Emster23]

Dang! I thought the transformation might have to do with Thai becoming intercity van company....

[Searat7]

Until the CEO has free reign to clear all the dead wood nothing will happen....maybe they have inactive positions at THAI too lol. I noticed they are still using their old 747's and I often see A 380's parked. Buying 6 of those was probably a big mistake.

[Mises]

Lots of negative comments here:

"There is still not a single Thai Airways exec who will talk about or release details on how much the carrier loses to all the free "VIP" tickets."

There is an argument that this costs very little, the plane is going there anyway and so the only cost is some extra weight. That is why airlines will upgrade a Y class passenger to C in order to sell one more Y class ticket. This argument does though assume the VIP would not buy a ticket at all if they had to pay for it.

"Wish they would hurry up, they used to be a good airline to fly with and were reasonably priced, not anymore."

On my route LHR-BKK there are some great deals with Thai, I have just bought business return for under £1700. Economy is about £460. They have a new marketing manager who is I believe Australian.

"Flying to London next week. Booked BA at Bht102,350 business with 3 bags of 96kgs baggage allowance.

TG - Bht128,500 and 2 bags of 40kgs".

That is a remarkable price from BA but it is BA and try looking at their prices starting in London.

"Just when will the Thai Airlines has the guts to wake up and realize that all previous local CEOs have failed in turning around the airline..."

Amranand was doing a good job but was removed, for political reasons only, by Thaksin's puppet.

Having supported TG above I have to agree that a middle and senior management cull is required and a foreign airline-experienced CEO but TIT and is not going to happen. In my opinion TG is a great airline despite its senior management and if that means continual subsidy from the Thai government (actually tax payers) well more fool them.

[laocowboy2]

Lots of negative comments here:

"There is still not a single Thai Airways exec who will talk about or release details on how much the carrier loses to all the free "VIP" tickets."

There is an argument that this costs very little, the plane is going there anyway and so the only cost is some extra weight. That is why airlines will upgrade a Y class passenger to C in order to sell one more Y class ticket. This argument does though assume the VIP would not buy a ticket at all if they had to pay for it.

"Wish they would hurry up, they used to be a good airline to fly with and were reasonably priced, not anymore."

On my route LHR-BKK there are some great deals with Thai, I have just bought business return for under £1700. Economy is about £460. They have a new marketing manager who is I believe Australian.

"Flying to London next week. Booked BA at Bht102,350 business with 3 bags of 96kgs baggage allowance.

TG - Bht128,500 and 2 bags of 40kgs".

That is a remarkable price from BA but it is BA and try looking at their prices starting in London.

"Just when will the Thai Airlines has the guts to wake up and realize that all previous local CEOs have failed in turning around the airline..."

Amranand was doing a good job but was removed, for political reasons only, by Thaksin's puppet.

Having supported TG above I have to agree that a middle and senior management cull is required and a foreign airline-experienced CEO but TIT and is not going to happen. In my opinion TG is a great airline despite its senior management and if that means continual subsidy from the Thai government (actually tax payers) well more fool them.

Although it is a quoted company, it counts as a state enterprise and so is subject to a whole additional set of red tape. For example, they are (at least in theory) prohibited from selling fixed assets at a loss - which is one reason why so many retired clunkers were still sitting on that balance sheet. I would imagine that this also makes the necessary staff cull even harder to achieve.

[ExpatOilWorker]

Losing 100 million baht/day (9.9 billion in Q3) and falling in global ranks. Dark days ahead at Thai Airways.

[Oziex1]

Perth to Phuket on Thai is the only option for me. budget carriers are rubbish and their super cheap fares never available when you want to fly. Air Asia cheap but overnight in KL, flying kangaroo overpriced but is a model on how to turn an ailing airline around.

Thai Airways still ok for Aus to Asia.

[Thai at Heart]

If they ever really get to grips with the mess at Thai airways it will be death by a thousand cuts.

They can cut and cut and cut and it still won't be enough people

[DipStick]

TG are a tired airline with tired aircraft being run by first class numpties. I have just booked a return ticket HK- LHR via KL with Malaysian which worked out at around HKD 5,000 cheaper than TG.

MH use the A380 and their business class and lounge in KL are superb. Their staff go totally out of their way to please, where it appears to me the TG staff go through the motions only. There is no comparison any more between TG and MH. just to rub salt into the wound, I have used Garuda a number of times recently, and they have gone from a totally garbage outfit to brilliant, they also leave TG looking idiots.

I guess in the case of TG, they reap what they sow

[ratcatcher]

Thai Airways.

These worthy gentlemen are all contributing to the financial success of the airline. I am sure you all agree.

One only has to Google the names to see how valuable their experience is.

Board of Directors[edit]

Former chairmen include Prajin Juntong,^[60] who still remains as a board member, however, Mr Ampon Kittiampon,^[60][61] is the chairman of the airline. Other members of the board include;

• Mr. Areepong Bhoocha-oom, 2nd Vice Chairman^[61]
• Mr. Kanit Sangsubhan, Director^[61]
• Mr. Weerawong Chittmittrapap, Director^[61]
• ACM Satitpong Sukvimol, Director^[61]
• ACM Prajin Juntong, Director^[61]
• Mr. Dheerasak Suwannayos, Director^[61]
• ACM. M.L. Suprija Kamalasana, Director^[61]
• Mr. Chutinant Bhirom Bhakdi, Director^[61]
• Pol. Gen. Adul Sangsingkeo, Director; Mr.Sutham Siritipsakorn, Director^[61]
• Mr. Sorajak Kasemsuvan, Director^[61]

^Wikipedia.

[harada]

Sad to see a once great airline going down the gurgler through greed and incompetence.

[Ricardo]

This latest announcement, like the strategy itself, gives me a curious feeling of deja-vue, once again.

[harada]

This latest announcement, like the strategy itself, gives me a curious feeling of deja-vue, once again.

. Apparently staff are now threatening to strike on Thurs 26th, I hope that no one supplies them with guns, they might shoot themselves in the foot.

[Langsuan Man]

Sad to see a once great airline going down the gurgler through greed and incompetence.

Sad to see a once great country going down the gurgler through greed and incompetence