Thai talk: Super-board's 'red card' threat is just tip of the reform iceberg

[webfact]

THAI TALK
Super-board's 'red card' threat is just tip of the reform iceberg
Suthichai Yoon
The Nation

BANGKOK: -- The "super-board" headed by Premier Prayut Chan-o-cha has handed down clear instructions for seven troubled state enterprises to either "shape up or ship out". Is genuine reform on the horizon?

You don't need to read between the lines to realise that the State Enterprise Policy Committee means business. Deadlines have been set for specific actions to be taken. Failure to live up to the new standards set will mean "yellow cards" for the executives concerned, to be followed by "red cards".

But what does a red card really mean in this case: The replacement of the chief executive officer, or of the whole board of directors? Who's to guarantee that a new board selected under the existing process would produce a more effective team of directors that could choose a superior CEO to turn around, say, the national carrier?

In handing down a list of very specific "must-dos" to Thai Airways' board of directors, the super-board has in effect turned itself into a "management board", directing what the CEO has to do: Achieve some "quick wins" by boosting revenue by Bt1.43 billion and cutting expenses by Bt3 billion by the end of December.

Transport Minister Arkhom Termpitayapaisith says THAI's management has also been told to cut senior staff's salaries and benefits.

"The deadline for this is November 30. Although some action had earlier been taken to reduce benefits for board members and former executives, implementation of these measures has been slow compared to other commercial carriers and budget airlines," the minister said.

The national airline has also been operating with a "top-heavy" management structure, according to Arkhom, who said the super-board had given a clear directive for the management to trim down the number of senior executives, to improve efficiency in the face of stiffer competition.

The super-board, the board of directors and the management seem to have agreed that another problem affecting THAI's revenue is a low level of online bookings. A new target has been set: to jack up the current 14 per cent online ticket sales to 30 per cent by the middle of next year.

However, none of these instructions appears to be very original or necessary, and unless there are other measures issued by the super-board that have not been made public, the picture is not encouraging. Any manager of a business would tell you that boosting revenue and cutting expenses is nothing but Management 101.

The national carrier didn't need a rocket scientist to work out that the wake-up call came years ago when the airline industry was severely disrupted by the emergence of no-frills, budget operators that posed a direct, fierce and unprecedented challenge to the established carriers.

There has been no lack of evidence all along that a thorough shake-up of the management direction, philosophy and structure was unavoidable if the national airline was to survive the competition.

But successive management boards have brushed aside the warnings - and not because the CEOs concerned weren't aware of the looming threat of competition, but because the ownership structure and political interference did not permit professional managers at all levels to perform the duties that any sound business would expect them to follow.

Apparently, the basic increase-revenue-cut-expenses instruction from the super-board to all seven state enterprises on the brink of financial calamity must be just the tip of an iceberg of wide-ranging reform that will roll out after red cards are issued to those that fail the "quick-win" test.

For, without a Plan B in place, the threat to dismantle Plan A if the deadline isn't met would be nothing but an exercise in futility.

Source: http://www.nationmultimedia.com/opinion/Super-boards-red-card-threat-is-just-tip-of-the-re-30273252.html


-- The Nation 2015-11-19

[MaiChai]

Thai lost all domestic business to the low cost carriers and appears not willing to compete with carriers on international routes. Thus a lost cause not able to be saved?

Its a long time since I have flown Thai. No incentive price wise nor an exciting proposition travel wise with old jets and tired service?

[JAG]

The trouble with Icebergs is that just the tip is visible. 7/8 remains hidden under water, until the berg drifts into warmer waters, when it melts away unseen.

[scorecard]

Thai lost all domestic business to the low cost carriers and appears not willing to compete with carriers on international routes. Thus a lost cause not able to be saved?

Its a long time since I have flown Thai. No incentive price wise nor an exciting proposition travel wise with old jets and tired service?

Yesterday at Chiang Mai airport I approached the ticketing sales counter. Many staff, all consumed with their own chatter, nobody interested in attending to a customer. Eventually a gruff middle aged woman said loudly 'alai' (what). No greeting.

I asked 'what's the cuurent economy fare to Ho Chi Minh City?'. Response, check the internet.

I replied 'I don't have internet connection right now. Madam barked at another staff member and walked away.

Next staff member asked again 'what do you want to know" I repeated my question.

Answer, nothing checked, 'about 14,000Baht.'

I proceeded upstairs to wait for my flight to Don Muang.

At the nearest departure gate a Thai Inter, flight was boarding, 10 staff on duty. Way beyond what is needed and especially when they are supposed to be cutting staffing costs.

No hope for this airline.

[nichol]

Emerates have a TV program about their airline on Sky TV maybe Thai could do the same

" on the comedy channel"

[torpedo1970]

"THAI's management has also been told to cut senior staff's salaries and benefits."

Is that the way of saying, they have to stop all the people on payroll, that actually never have worked a day for them???

and their benefits as well??

And the free flights for all the Hi-So friends and extended families of executives?

[waldroj]

Should be called State Enterprise Policy Tactical Investigation Committee (or SEPTIC)!

That may give it a higher "air" of authority as they attempt to clean up the shit from the recalcitrant State enterprises.

Now that they too are meddling directly in THAI management, I fear for my investments in that company.

[bangkokfrog]

"The national airline has also been operating with a "top-heavy" management structure, according to Arkhom, who said the super-board had given a clear directive for the management to trim down the number of senior executives, to improve efficiency..."

Great advice. But shouldn't the super-board also be giving the same directive to the RTA.... to "trim down" the top-heavy management structure and retire 80% of the Generals? This would probably save the country more than restructuring Thai Airways !!!

[EnglishJohn]

If people with attitudes like that guy who publicly slapped that staff member for asking him to go through the metal detector are still on the payroll when this is finished, it has failed.

The root problem for Thailand is the corrupt way people get the top jobs in any and every government organisation. And as most in the decision making positions probably got their job in that way too, nobody wants to open pandoras box.

I'm sure a few have good intentions but they are never going to change Thai culture.

[Echo Tango]

Thai Airways needs a new website. The current one is too clunky and there's hardly any options to do anything else besides buy a ticket. Thai Smile's website sucks super-hard, too!

[ChrisY1]

IMO, the last paragraph rings true with most state enterprises.......threat and warnings are a taken on the chin it seems, and business generally resumes.

Having public servants manage state enterprises usually leads to failure......

[phrisco17]

"Red Card" alludes to the " wheel is round" syndrome, replacing current inept executives and management with yet another group of inept executives and management! Roll on!

[AlQaholic]

Easy to do, sell some shit and fire all staff, ground all aircraft...voila all goals achieved in very short time, no yellow or red card yippi!!

[losgrad]

In a "Command Economy" couldn't they just get rid of the competition?

http://edbus.saschina.wikispaces.net/file/view/market%20vs%20command.jpg/447299376/591x428/market%20vs%20command.jpg

Edited November 19, 2015 by losgrad

[mike324]

Thai Airways needs a new website. The current one is too clunky and there's hardly any options to do anything else besides buy a ticket. Thai Smile's website sucks super-hard, too!

I think their website works just fine, its that their pricing is not competitive enough for many markets. What else do you want to do other than book a ticket on Thai Airways website?

You can actually get a better rate for the same flight sometimes by booking through Thai Smile website, I have found some rates to be 20% cheaper.

[SABloke]

Member of yet another board...how many salaries is Prayuth pulling at the moment? Legal corruption

[robertson468]

The Government should have a Management Consultancy Company come in and do a proper and full study of how THAI operates and make recommendation (to the Government) on how to improve the service and return to profitability. Government should then direct THAI to implement the new recommendations. This is not "rocket science", but I am surprised that the Government cannot think of solutions like this. Could it be there are too many amature businessmen and politicians in their midst?

[waldroj]

robertson468:

No, just too many from the military!

[CantSpell]

You can actually get a better rate for the same flight sometimes by booking through Thai Smile website, I have found some rates to be 20% cheaper.

Thai Smile is the "low cost" branch of Thai Airways if I am not mistaken so same same...

Maybe they should revise their business plan and their pricing policy tho: it seems that the "charge twice as much as others for the same thing" policy ain't working

Also I used to hate their website with that pricing window opening without any menu..

[mike324]

You can actually get a better rate for the same flight sometimes by booking through Thai Smile website, I have found some rates to be 20% cheaper.

Thai Smile is the "low cost" branch of Thai Airways if I am not mistaken so same same...

Maybe they should revise their business plan and their pricing policy tho: it seems that the "charge twice as much as others for the same thing" policy ain't working

Also I used to hate their website with that pricing window opening without any menu..

Yes Thai Smile is the "low cost" branch, but on the website the normal non low cost flights also show up (not sure how often or which flight)

[waldroj]

Those of you referring to Thai Smile Air as a budget airline, please stop it!

Thai Smile Air is the regional airline, and wholly owned subsidiary of Thai Airways International.

Nok Air is the budget airline of Thai Airways International (its top three shareholders are Thai Airways International PCL, with 39.2%; Aviation Investment International Limited, with 10%, and Laddawan Fund Co., Ltd., with 4.8%).

Since its inception, Nok Air has been operating largely independently from THAI, and competing directly with Thai Smile on the same routes.

Edited November 19, 2015 by waldroj

[Echo Tango]

Thai Airways needs a new website. The current one is too clunky and there's hardly any options to do anything else besides buy a ticket. Thai Smile's website sucks super-hard, too!

I think their website works just fine, its that their pricing is not competitive enough for many markets. What else do you want to do other than book a ticket on Thai Airways website?

You can actually get a better rate for the same flight sometimes by booking through Thai Smile website, I have found some rates to be 20% cheaper.

*I'd like to pick a seat online when I book a domestic ticket.

*I'd like to change or select seats on an international flight after I've booked it.

*I'd like to use iCheck-in, but you can only use it on Thai Airways. If Thai Smile is part of your itinerary, it won't let you check in.

*I'd like for them to launch an iPhone app that doesn't crash all of the time.

*I'd like to pay for my extra bags ahead of time.

*I'd like to have an accurate list of airlines that I can earn miles on. I chose US Airways for all of my flights I took in 2014, only to be told later on that they stopped awarding miles to that airline in 2013! They removed US Airways from the drop down list on their website about 6 months ago. Pathetic!

*I'd like a better way to manage the minuscule-miles they've awarded me. Their system is hopelessly inept and falls well short of the industry standard when it comes to ease of use and functionality.

Their aircrew, meals and schedules are great. Their website sucks!

Edited November 20, 2015 by Echo Tango

[mike324]

Thai Airways needs a new website. The current one is too clunky and there's hardly any options to do anything else besides buy a ticket. Thai Smile's website sucks super-hard, too!

I think their website works just fine, its that their pricing is not competitive enough for many markets. What else do you want to do other than book a ticket on Thai Airways website?

You can actually get a better rate for the same flight sometimes by booking through Thai Smile website, I have found some rates to be 20% cheaper.

*I'd like to pick a seat online when I book a domestic ticket.

*I'd like to change or select seats on an international flight after I've booked it.

*I'd like to use iCheck-in, but you can only use it on Thai Airways. If Thai Smile is part of your itinerary, it won't let you check in.

*I'd like for them to launch an iPhone app that doesn't crash all of the time.

*I'd like to pay for my extra bags ahead of time.

*I'd like to have an accurate list of airlines that I can earn miles on. I chose US Airways for all of my flights I took in 2014, only to be told later on that they stopped awarding miles to that airline in 2013! They removed US Airways from the drop down list on their website about 6 months ago. Pathetic!

*I'd like a better way to manage the minuscule-miles they've awarded me. Their system is hopelessly inept and falls well short of the industry standard when it comes to ease of use and functionality.

Their aircrew, meals and schedules are great. Their website sucks!

I guess a frequent flyer would need all that, apologize for my comments.

I did also put all my miles on the THAI card for a year only to be find out later they don't accept it, was quite bummed out about it too as I flew several times to Europe and US in that particular year.

The positive thing I found was redeeming the mileage for hotel stays in Thailand, it was a easy straight forward process, voucher was sent in a week and 5 Star hotels like St. Regis were in the list. Hotel selection isn't much, but didn't expect much from this airline anyways.

[Echo Tango]

Thai Airways needs a new website. The current one is too clunky and there's hardly any options to do anything else besides buy a ticket. Thai Smile's website sucks super-hard, too!

I think their website works just fine, its that their pricing is not competitive enough for many markets. What else do you want to do other than book a ticket on Thai Airways website?

You can actually get a better rate for the same flight sometimes by booking through Thai Smile website, I have found some rates to be 20% cheaper.

*I'd like to pick a seat online when I book a domestic ticket.

*I'd like to change or select seats on an international flight after I've booked it.

*I'd like to use iCheck-in, but you can only use it on Thai Airways. If Thai Smile is part of your itinerary, it won't let you check in.

*I'd like for them to launch an iPhone app that doesn't crash all of the time.

*I'd like to pay for my extra bags ahead of time.

*I'd like to have an accurate list of airlines that I can earn miles on. I chose US Airways for all of my flights I took in 2014, only to be told later on that they stopped awarding miles to that airline in 2013! They removed US Airways from the drop down list on their website about 6 months ago. Pathetic!

*I'd like a better way to manage the minuscule-miles they've awarded me. Their system is hopelessly inept and falls well short of the industry standard when it comes to ease of use and functionality.

Their aircrew, meals and schedules are great. Their website sucks!

I guess a frequent flyer would need all that, apologize for my comments.

I did also put all my miles on the THAI card for a year only to be find out later they don't accept it, was quite bummed out about it too as I flew several times to Europe and US in that particular year.

The positive thing I found was redeeming the mileage for hotel stays in Thailand, it was a easy straight forward process, voucher was sent in a week and 5 Star hotels like St. Regis were in the list. Hotel selection isn't much, but didn't expect much from this airline anyways.

No need to apologize, it's all good!

[phoenixdoglover]

Privatize Thai Airways.

Next problem.

[steven100]

I just heard there's a lot of arse kissing going on over at the office today .............. must be worried about who's stayin and who's not