THAI aims to cut costs by 5 billion baht next year and to up load factor

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THAI aims to cut costs by 5 billion baht next year and to up load factor



BANGKOK: -- Thai Airways International, the national flag carrier, has set a target to cut costs by 5 billion baht and to increase its load factor by 6 percent to almost 80 percent the coming year.

THAI president Jarumporn Chotikasathien told the media after a meeting of the board of directors on Tuesday that the national flag carrier had sold altogether 24 aircrafts this year and managed to reduce 8 billion baht in costs out of a set target of 10.7 billion baht through reduced flights and the closure of four ground stations at Johannesberg, Moscow, Madrid and Los Angeles.

As a result of the flight cutback and suspension of services at the four stations, he said THAI managed to improve its efficiency in providing services with its load factor rising to 73 percent and 5-6 passenger growth rate.

He further said that THAI aims to restore its customer’s service excellence and to improve its efficiency in route, flight and pricing management.

Source: http://englishnews.thaipbs.or.th/thai-aims-to-cut-costs-by-5-billion-baht-next-year-and-to-up-load-factor


-- Thai PBS 2015-12-30

[steven100]

PFS ...........

price !!!

food !!!

service !!!

that's it .................. it's not rocket science !

oh ...... and get rid of 80% of top heavy management.

[EyesWideOpen]

Cut prices ?? Hate to inject logic.....

[never me]

I dont care what they do.....I will never fly with Thai international again, sheer arrogance.

[never me]

Cut prices ?? Hate to inject logic.....

Thai & Logic never used together.

[leeneeds]

Cut throat business, that requires thinking outside the norm, Trying to be a constant world player is a recipe for disaster too many have tried and vanished, Thai already have solid routes, That are well patronised, keeping those customers satisfied first, is so important,

Innovative offers of bare to the bones flights every now and then to different locations, no baggage , no meals , cargo carrier, depending on docking costs at different airports would determine the costs of a ticket, I know so many people how don't give a rats arse about food and trimmings , just want a cheap flight , selection and timing of these flights with some ( HOME WORK) would generate bums on seats, , reverse flights could be done in low seasons, a standard flight going to some counrty and bare to the bones coming back to Thailand , I am positive that the plane would be filled,

[NongKhaiKid]

Does this mean they're going to remove all the excessive freebies that those and such as those enjoy ?

No, didn't think so. ?

[ezzra]

Another point will be to stop ordering buying new planes every time there's a new plane productions

and stick to one or two brand of plans to cut on maintenances and keeping spare parts for half dozen

different plane manufacturers...often you hear Thai ordering dozens of this new plan and some

more of the others...

[jacky54]

If they can't maintain a website proper;y why should people trust the planes to be?

[saakura]

Another point will be to stop ordering buying new planes every time there's a new plane productions

and stick to one or two brand of plans to cut on maintenances and keeping spare parts for half dozen

different plane manufacturers...often you hear Thai ordering dozens of this new plan and some

more of the others...

While other factors might have contributed to the decline, insiders and those that are following the annual financial statements, the one major thing which has broken its back is aircraft purchases. THAI board is always packed with nominees of politicians, armed forces big guns and certain elites. In cahoots with western brokers (moneybags), orders are placed for various aircrafts and excessive amount of spares. The operations department then has to find new routes to deploy these aircraft causing heavy losses. Also there is no uniformity, different models are ordered at will so spare parts cannot be pooled.

[Ricardo]

My understanding is that, for the past few years at least, their new aircraft have been leased, not owned ?

And they couldn't keep operating those 20-year-old A300-600s or B747-400s forever, so some sort of fleet-renewal was needed.

But the freebies need to be eliminated, if only as a signal that they're serious, about turning the business round ... meanwhile I'm glad I don't own shares in TG !

[bangon04]

I know so many people how don't give a rats arse about food and trimmings , just want a cheap flight , selection and timing of these flights with some ( HOME WORK) would generate bums on seats, , reverse flights could be done in low seasons, a standard flight going to some counrty and bare to the bones coming back to Thailand , I am positive that the plane would be filled,

For many years, all the legacy airlines have insisted that the customer on a 1 - 3 hour flight really really needs to have an in-flight meal thrown at them - a meal which the customer would almost certainly not have chosen themselves , a meal which takes preparation, transportation, storage, loading and waste disposal costs, and which uses additional fuel to carry . This in flight "service" is somehow sacrosanct. Most passengers would prefer to have a reduction in ticket price and save the environment at the same time.

[madmitch]

Note that there's no mention at all in the article of profitability.

Costs can be cut by cutting the least profitable routes and by selling off unwanted aircraft. This in turn should have the effect of increasing the load factor. Not exactly rocket science.

But THAI is still overpriced, consistently coming up with the highest price whenever you search online. They must get their pricing correct in order to attract customers and return to profitability, and, as NongKhaiKid says, part of the way forward should be to have more paying customers and fewer freebies.

They really need proper management from within the worldwide aviation industry and we know that won't happen.

[toybits]

Even with the competing airlines hands tied behind their backs (e.g. relegating them to flying from Don Muang airport), TG still can't compete? The truth can sometimes be truly brutal. When they wake up from their sleep, they might find themselves without a ship to hang on to. The image they built in the past has been obliterated.

[shirtless]

There s so much dead wood in Thai , you wouldnt want to light a match,

[Mr Creosote]

If they can't maintain a website proper;y why should people trust the planes to be?

Probably more cuts here, even though they clearly contracted with the lowest bidder to do the designs. Its the most horrible airline website I have used. Especially the Royal Orchid section. Useless.

[Mr Creosote]

"...increase its load factor by 6 percent to almost 80 percent the coming year.."

More flights to rural China will be added then.

[ginjag]

It's all been said, here is your proof THAI but you will not want to here this, because it will have to be YOUR idea, and that will never be ok..

Get rid of High prices-------Get rid of deadwood management----Get rid of freebies (most of which are Business and 1st class)------ THAI look at your nearest rival to the UK--direct flight--EVA. it outstrips you a mile for price and service. 1 example.

[NCC1701A]

"i got a idea, lets not have flights to Los Angeles anymore."

"yeah, good idea. who needs that?"

"ok. that was easy. whats for lunch?"

[legend49]

Why dont the Thai management who can speak and UNDERSTAND English get off their asses and go and talk with passengers and get the news of what is so bad from the horses mouth. Pricing is easy to assess; with airline websites you can easily compare prices, why they are so expensive? Let them ponder at the number of purple uniforms sitting around airside doing nothing; what value to these add to the customer? Then set some goals with measurable KPI's not just the same rhetoric we here year in year out.

[mcfish]

If they can't maintain a website proper;y why should people trust the planes to be?

I tried to book with reward points once and nearly ended putting my fist through the screen

Sent from my SC-01D using Tapatalk

[Prbkk]

Some major blunders under previous administration....too many aircraft models ( and now they can't flog the lovely but uneconomic A340s), failure to sign up to the 3rd party discount sites presumably believing they could ride out the storm of 07, 08, 09 on their own ( and consequent disastrously low loads)...furthe complicated by truly bizarre route expansions when everyone else tried to batten down the hatches and go into survival mode, cutting rates rather than expanding. Thai Smile....very late into the game and pretty half-baked.

If he can turn it around he'll well deserve his salary