PM Prayut blames previous governments for THAI's financial woes

[webfact]

PM blames previous governments for THAI's financial woes



BANGKOK: -- Prime Minister Prayut Chan-ocha has blamed previous governments for doing nothing to address the chronic financial problem in Thai Airways International, the national flag carrier.

Responding to a report that some staff members of the airline would stage a strike on Thursday, the prime minister said the staff would not strike but merely wanted to submit a letter to the management.

He added that a strike would be pointless as the management was trying to solve the financial problem.

THAI’s loss for the first three quarters of the year was estimated at 18 billion baht.

The prime minister said he had instructed THAI management to make sure that its cost-cutting plan should not affect low- and middle-ranking employees because they could not be blamed for the loss incurred which should be blamed on the previous boards and managements.

He pointed out that the new board and new management had to bear the loss burden of their predecessors just as his government had to bear the financial burden caused by its predecessors.

“Take a look at all the aircraft at the airport. You should know who bought them. When I was the army chief, I never heard anybody asked the prime minister then why he did not do anything. Where were Government House reporters? Why didn’t they ask the prime minister then?,” the prime minister asked.

Asked about the performance of THAI CEO Charumporn Chotikasathien, the prime minister said the latter had just took over the job and should be given time to prove his worth.

“Why, do you want him fired? There is the board which is monitoring his performance,” said the prime minister.

Source: http://englishnews.thaipbs.or.th/pm-blames-previous-governments-for-thais-financial-woes


-- Thai PBS 2015-11-25

[baboon]

Fair enough, it was the fault of previous governments. However now the junta head has oversight, we should shortly expect to see the transformation of THAI into an airline which will go from strength to strength and leave its competitors in the dust.

Edited November 24, 2015 by baboon

[wangsuda]

Why blame past governments? Blame should be placed on all those who think they are entitled to bloated salaries and perks. Blame those who think they are entitled to freebie flights in business class. Blame those who think that who they know entitles them to a position at Thai Airways. In other words, for the first time in history, be responsible and quit shifting the blame.

[NongKhaiKid]

Yes it's a very old problem but what is being done now ?

For example has the PM stopped those and such as those benefiting from all the freebies or is that another issue that's off limits because of who's involved ?

[Snig27]

Yes it's a very old problem but what is being done now ?

For example has the PM stopped those and such as those benefiting from all the freebies or is that another issue that's off limits because of who's involved ?

Yep - like the military families who are taking the business class seats now - gratis.

No-one is saying it was mishandled in the past but you'd be brave person to argue that it's benefited from the fiscal incompetence of the junta.

[Thailand]

it wasn't us they did it!

[z42]

It's a basket case now, and has seemingly been going to (or already went to) the dogs long ago. For flights of any distance the prices to fly them are just nowhere near competitive.
I just simply can't understand how they can masquerade as anything other than a means for connected Thais to fly either for free or vastly reduced fares. I would NEVER fly them because in my opinion the ethos and the fares demanded are not attractive in the slightest. Sure am not alone in that line of thought

[PatOngo]

RIP Thai.

[harada]

Saving face takes precedence over saving Thai.

[craigt3365]

Why blame past governments? Blame should be placed on all those who think they are entitled to bloated salaries and perks. Blame those who think they are entitled to freebie flights in business class. Blame those who think that who they know entitles them to a position at Thai Airways. In other words, for the first time in history, be responsible and quit shifting the blame.

What you say was due to the actions of previous governments. The PM has taken steps to eliminate these perks. It was done last year, I believe.

Sorry, but the blame fully lies with previous governments. Running an airline isn't an easy, nor necessarily profitable, business. Bankruptcy is common.

[shirtless]

Thai is a dead duck, if they dont reduce the ded wood among their ranks.

[harkish]

How about bringing on a non-Thai international airline CEO and giving them free reign to make the operation profitable. Cut out the freebies you see each time you board - the people you see up in business class while you walk back to cattle section, many of which you know didn't pay for the flight. And fire the board, or anyone who has been on it for more than a few months - as they clearly didn't do their oversight job in the past.

This is how you turn around a failing operation, face be damned. Unfortunately, its never gonna happen.

[Sydebolle]

Thai Airways International (TG), like any other airline, should be managed by professionals and not by politicians.

Those who remember TG (prior and during the merger with Thai Airways TH) will recall those professional icons like Chatchai Bunya-Anantha and Captain Yothin, who took over the sceptre from Niels Lumholdt and Lennart Holmgren. Latter were on "lease" from Scandinavian Airlines under a deal signed back in 1960 - until gracefully retiring.

In those days TG was a prime carrier in Asia, shoulder-rubbing with Cathay and Singapore Airlines; Chatchai had to mandatorily retire in 1992 (when he turned 60) and afterwards, slowly but surely, TG was misused by a steady stream of incompetent and partially corrupt clowns from all sorts of life.

Go to the head office these days and see all those middle aged staff in their late 40s and 50s arriving in the morning and then attending their own affairs while youngsters follow completely outdated protocols and do the inefficient work.
Technically ask everybody to reapply with TG and state a (professional) reason why TG would need this staff - wishful thinking, I know

But sooner or later a serious clean-up and outside management help (by former TG executives?) will be of survival importance. Otherwise the government will keep on pouring money to no end into this beehive of inefficiency and corruption or - the airline goes bust!

You have to explain passengers why to choose TG over another airline; the product, the pricing, the timetable and the reliability all suck

[englishoak]

No blame the military, its they who use the thing most and end up in all the civvy jobs and abuse the perks.

Just blame the Thai elite thatll cover it.

[Prbkk]

Why blame past governments? Blame should be placed on all those who think they are entitled to bloated salaries and perks. Blame those who think they are entitled to freebie flights in business class. Blame those who think that who they know entitles them to a position at Thai Airways. In other words, for the first time in history, be responsible and quit shifting the blame.

What you say was due to the actions of previous governments. The PM has taken steps to eliminate these perks. It was done last year, I believe.

Sorry, but the blame fully lies with previous governments. Running an airline isn't an easy, nor necessarily profitable, business. Bankruptcy is common.

While there is truth in this, the problems with Thai go back into the 90s. How on earth did they end up with 6 or 7 different models, several engine types, 3 manufacturers and a never-ending expansion of routes? Madrid? Milan? Zurich?Vienna? They must bleed money.

The fiddling around with the frequent flyer program has not helped ( most FFP members want some link with a credit card to earn points...Thai doesn't offer this to non-thai nationals other than a couple of Japanese cards , one HSBC and a lousy AMEX earn rate)

[oneday]

Someone needs to hold up a mirror and look in it.

[chainarong]

Why blame past governments? Blame should be placed on all those who think they are entitled to bloated salaries and perks. Blame those who think they are entitled to freebie flights in business class. Blame those who think that who they know entitles them to a position at Thai Airways. In other words, for the first time in history, be responsible and quit shifting the blame.

What you say was due to the actions of previous governments. The PM has taken steps to eliminate these perks. It was done last year, I believe.

Sorry, but the blame fully lies with previous governments. Running an airline isn't an easy, nor necessarily profitable, business. Bankruptcy is common.

While there is truth in this, the problems with Thai go back into the 90s. How on earth did they end up with 6 or 7 different models, several engine types, 3 manufacturers and a never-ending expansion of routes? Madrid? Milan? Zurich?Vienna? They must bleed money.

The fiddling around with the frequent flyer program has not helped ( most FFP members want some link with a credit card to earn points...Thai doesn't offer this to non-thai nationals other than a couple of Japanese cards , one HSBC and a lousy AMEX earn rate)

And jacking up the price out of OZ only makes people go to Indon, from Perth for that extra #400 u can have 5 great days in Bali.

[jaltsc]

"He added that a strike would be pointless as the management was trying to solve the financial problem."

That's a euphemism for "You start striking, we start arresting".

Edited November 25, 2015 by jaltsc

[Lupatria]

The disaster started when SAS left. Hard to believe he really skipped the chance to blame the farrangs.

[Emster23]

Previous government may have done nothing, but PM sticking his nose into what should be management decisions "The prime minister said he had instructed THAI management to make sure that its cost-cutting plan should not affect low- and middle-ranking employees because they could not be blamed for the loss incurred which should be blamed on the previous boards and managements." is a step backwards.

If Thai is ever going to be competitive, new management needs to be hard headed. Top, bottom, middle... where ever cuts should be made, make them. And even cut out free flights for government employees, dear PM?

[MZurf]

Why blame past governments? Blame should be placed on all those who think they are entitled to bloated salaries and perks. Blame those who think they are entitled to freebie flights in business class. Blame those who think that who they know entitles them to a position at Thai Airways. In other words, for the first time in history, be responsible and quit shifting the blame.

What you say was due to the actions of previous governments. The PM has taken steps to eliminate these perks. It was done last year, I believe.

Sorry, but the blame fully lies with previous governments. Running an airline isn't an easy, nor necessarily profitable, business. Bankruptcy is common.

"Sorry, but the blame fully lies with previous governments."

I disagree. While Thai has been run as the private airline for the rich and connected since the start there has been ample opportunity for Prayuth to instigate a comprehensive reform of Thai Airways for the last 18 months.

Alas, as usual it has only been words.

[Ace of Pop]

Ask Branson to spare 5 mins

[craigt3365]

Interesting article from 10 years ago. The problem has been known for a long time, by several previous governments. Who did nothing:

http://www.thaivisa.com/forum/topic/22541-pm-orders-thai-airways-to-maintain-standards/

[craigt3365]

Why blame past governments? Blame should be placed on all those who think they are entitled to bloated salaries and perks. Blame those who think they are entitled to freebie flights in business class. Blame those who think that who they know entitles them to a position at Thai Airways. In other words, for the first time in history, be responsible and quit shifting the blame.

What you say was due to the actions of previous governments. The PM has taken steps to eliminate these perks. It was done last year, I believe.

Sorry, but the blame fully lies with previous governments. Running an airline isn't an easy, nor necessarily profitable, business. Bankruptcy is common.

"Sorry, but the blame fully lies with previous governments."

I disagree. While Thai has been run as the private airline for the rich and connected since the start there has been ample opportunity for Prayuth to instigate a comprehensive reform of Thai Airways for the last 18 months.

Alas, as usual it has only been words.

http://www.thaivisa.com/forum/topic/733279-junta-cancels-free-flights-of-thai-board-members/

Junta cancels free flights of THAI board members

BANGKOK: -- National Council for Peace and Order Tuesday ordered cancellation of free flights of Thai Airways International board or directors.

The NCPO reasoned that the cancellation would help THAI cut cost and would save the national budget.

The move would be the first step of the junta's operation to cut lavish privileges of state enterprises' boards of directors.

[EnglishJohn]

Fair enough, it was the fault of previous governments. However now the junta head has oversight, we should shortly expect to see the transformation of THAI into an airline which will go from strength to strength and leave its competitors in the dust.

What on earth makes you think anyone in the Army knows the first thing about running an airline ?.

Stop blaming the Junta for everything like a spoilt child and start supporting progress on reforms so they are pressured to get out and let Thailand have it's first government from free and fair elections.

[mike324]

Well it seems like the current government is steering it into the right direction, cutting salaries of management, cutting staff, etc. The debt is too much that it will take a couple years to recover and return to profitability. I believe they bought a lot of new planes back then which is one of the primary reasons for the debt.

I remember back then, they even had a check-in line reserved for politicians only. If anyone is interested I can dig up the picture too.

[Nicolas32]

What a joke about cost cutting when ever i have heard it ..? four luxurious cars at a budget of Bt78 million.

[BlindMagician]

Why blame past governments? Blame should be placed on all those who think they are entitled to bloated salaries and perks. Blame those who think they are entitled to freebie flights in business class. Blame those who think that who they know entitles them to a position at Thai Airways. In other words, for the first time in history, be responsible and quit shifting the blame.

What you say was due to the actions of previous governments. The PM has taken steps to eliminate these perks. It was done last year, I believe.

Sorry, but the blame fully lies with previous governments. Running an airline isn't an easy, nor necessarily profitable, business. Bankruptcy is common.

How long has the circus been in town? They haven't done enough have they, to save the national airline.

Running a country isn't easy either, but that's no excuse.

[jayboy]

Why blame past governments? Blame should be placed on all those who think they are entitled to bloated salaries and perks. Blame those who think they are entitled to freebie flights in business class. Blame those who think that who they know entitles them to a position at Thai Airways. In other words, for the first time in history, be responsible and quit shifting the blame.

What you say was due to the actions of previous governments. The PM has taken steps to eliminate these perks. It was done last year, I believe.

Sorry, but the blame fully lies with previous governments. Running an airline isn't an easy, nor necessarily profitable, business. Bankruptcy is common.

Nobody can seriously blame the current government for Thai Airways' woes but it is equally fatuous to lay the blame at the hands of previous governments.It is true that all governments have been unwilling to address TG's structural problems and freebies though symptomatic are not really a particularly significant component.They are however important symbollcally because they indicate an attitude of mind that government officials, military bigwigs and employers are somehow more important than paying customers.

Many including myself remember when TG was one of the finest airlines in the world.But there is no point in seeking to restore the status quo ante because those were different times before the rise of budget airlines.Even if TG had been managed well it would be facing some difficult challenges today.

My suggestions.

1.Hire top class foreign CEO with big financial incentives for achieving targets.Cast iron contract so could not be fired if achieving targets.

2.Reduce government shareholding eventually to less than 25% ebentually to nil.

3.Reform Board of Directors.No military or airforce involvement.Pure top level private sector - if necessary including foreigners.

4.Reduction of work force to economic levels.

5.Abolish all freebies or at least reduce to level of CX,SQ etc.

6.No uneconomic international routes.Leave domestic market to Nok Air (and no cross subsidies)

7.Procurement decisions by Board with Min istry of Finance involvement/scrutiny.No militsary/air force involvement of any kind.

8.No government guarantees.No hand outs in event of financial difficulties.If necessary let TG go to wall/bankruptcy (MH style) and restructure.

[BlindMagician]

Ask Branson to spare 5 mins

Thai Air + Virgin ....