THAI aims to increase 10bn baht in revenue and cut costs by 6bn baht this year

[webfact]

THAI aims to increase 10 billion baht in revenue and cut costs by 6 billion baht this year



BANGKOK: -- Thai Airways International is expected to earn an extra revenue of 10 billion baht and, at the same time, cut costs by 6 billion baht.

THAI president Jarumporn Chotikasathien said Monday that if cabin factor could be increased to 80 percent from 73.9 percent, Thai’s revenue would increase by 10 billion baht without any additional expenses.

According to the company’s rehabilitation plan, he said the national flag carrier had set a target to reduce costs by 6 percent out of a total of 100 billion baht or 6 billion baht.

He disclosed that NMS system would be introduced in the management of service routes and flights for optimum efficiency whereas RMS system would be used for the management of ticket pricing so THAI could remain competitive with the other airlines.

He said he would seek approval from the board for the acquisition of the two systems at an estimated cost of over 100 million baht.

Mr Jarumporn admitted that although THAI has benefited from oil price slump, it has faced stiff competition from three major competitors from the Middle East and, hence, THAI would have to improve the quality of its services in order to remain competitive.

Source: http://englishnews.thaipbs.or.th/content/147157


-- Thai PBS 2016-01-19

[z42]

Christ sake what planet are these people on. They are talking about "remaining competitive". On routes between BKK and the UK for example Thai are at best double the price of qatar & etihad. And with affiliate partners to European destinations sometimes as high as 4 times the price of the cheapest carriers.

I can't honestly think how they'll compete until they reduce fares dramatically.

[Ricardo]

Fare management is interesting ... I actually purchased a flight with Thai-Smile for this May, first time I've flown TG in five years, because they were B1,000 cheaper than Bangkok Airways, who are my normal default-carrier (with by-far the best product) on connecting-flights to long-haul trips.

Which suggests a lost-opportunity for TG to increase profit, by several hundred Baht, because they weren't aware of what the competition were charging ?

And I fail-to-see how the Gulf-based airlines can be hitting their Asian or Australian or Pacific routes at all ! Just another convenient excuse !

[torpedo1970]

It has been talk the talk for over a year already.

Anybody seen walk the walk?

guess not

[Prbkk]

Oh, it's simple: just increase the load factor to 80% and we'll be laughing? If only it were that simple. Maybe spend some time reflecting on how you lost so much market share in the first place and you might find greater insight into the real issues facing Thai.

He keeps banging on about increasing online sales but the website is terminally dysfunctional.

[trogers]

Why the complications?

Just cut off the freebies that you have been giving away and lob off 80% of the number of vice-presidents and you are rehabilitated.

[OMGImInPattaya]

Translation: Airfares up...food quality down.

[OMGImInPattaya]

Christ sake what planet are these people on. They are talking about "remaining competitive". On routes between BKK and the UK for example Thai are at best double the price of qatar & etihad. And with affiliate partners to European destinations sometimes as high as 4 times the price of the cheapest carriers.

I can't honestly think how they'll compete until they reduce fares dramatically.

It's like most things in Thailand...the prai in economy have to subsidise the free flights of the amart in first, hence the high prices.

[SOTIRIOS]

....is that all.....

...I guess when you are 'self-regulating'....anything is possible....'on paper'.....

[BudRight]

They'll probably raise prices to make up the difference like hotels did when the yellow shirts shut down the Airport.

[NVass]

Going to the UK next week. Usually fly Thai business class. Though I would look at Emirates to see if I could do better. Emirates first class (Own cabin, horizontal flat bad and shower facilities on A380 was cheaper than Thai business class by quite a big margin. Only down side is stop in Dubai. Thai airways really needs to step up its game if its going to survive.

[madmitch]

It sounds so simple, doesn't it. Increase income, cut costs.

Every business in the world would like to be able to do the same.

Actually finding a way to do it successfully is a different matter.

[OMGImInPattaya]

Will anyone be clicking on the Thai banner ad on the right of this thread...another example of their ineffective marketing ?

Google needs to tweek the algorithm a bit so as not to place Thai ads on threads slamming Thai Airways.

[waldroj]

What else would this turkey say? He's about to be given a red card in March for his abysmal efforts (at a time when fuel costs have been so low, the company still can't meet its required savings demanded by the junta).

[Pepper1959]

Let me guess, they will say they made huge savings on fuel costs and they didn't have to do anything because of market forces. This is how these THAI Executives think. Sit on their hands, do nothing, the winds change for a while in their favour and they take all the credit, then things go wrong and they haven't got the foggiest how to get out of the quagmire.

[sebastion]

It's funny that they focus just on the revenue forecasts and not operating profits.

You know why? It hasn't made money in decades. Losses every year.

Edited January 19, 2016 by sebastion

[scorecard]

What else would this turkey say? He's about to be given a red card in March for his abysmal efforts (at a time when fuel costs have been so low, the company still can't meet its required savings demanded by the junta).

Until a few senior managers are sacked / dismissed nothing will happen.

Then there's the danger that more incapable and disinterested people will move up (it's their right, they are the longest serving) and nothing improves again, more taxpayers money wasted on props ups, more time wasted by Thailand's leaders who should be spending their time on other things to take Thailand forward.

Personally I'm not surprised in regard to Thai Inter. I worked previously with a major management consulting company and we did many projects with Thai. All a waste of time and money. Very poor attitudes, never listen to the discussions, come late or not turn up at all at many meetings...

Close them down now, wait a few years and restart the airline but old employees barred.

[BudRight]

The government should just sell it to a private party. That or it will continue to lose money. Of course, then there would be nationalistic outrage.

[PREM-R]

I read a few days ago, in ‘The paper that must not be named’, that THAI is about to appoint a foreign airline professional as vice-president of sales.

An Australian, Bryan Banston has 30 years of airline experience, he will receive a basic salary of 650,000 baht a month, a monthly travel allowance of 70,000 baht and a housing allowance of 100,000 baht.

Edited January 19, 2016 by PREM-R

[TallGuyJohninBKK]

So what exactly do they want to spend another 100 million baht on now?

He disclosed that NMS system would be introduced in the management of service routes and flights for optimum efficiency whereas RMS system would be used for the management of ticket pricing so THAI could remain competitive with the other airlines.

Something like this?

The Resource Management System (RMS) is a solution designed for the efficient management of non-mobile handling resources such as airline ticket counters, gates and airline back offices as well as kiosks operating in both CUSS mode and dedicated use mode and baggage reclaim carousels.

RMS is an integral element of the common use system and makes an essential contribution to enhancing the flexibility of the airport properties and facilities. RMS relieves scheduling mana­g­ers from time-consuming routine tasks and supplies all the necessary information in a clear and syste­m­atic format to enable rapid response and resolution at a critical moment.

http://www.aviationpros.com/product/10854358/air-transport-it-services-inc-airit-resource-management-system-rms

And this?

Maximize your total network revenue by optimizing passenger connectivity with Sabre® AirVision™ Network Manager. Network Manager is a global schedule optimization system designed to help airlines determine the most optimal departure and arrival times for flights at a hub(s) based on driving total network revenue. It combines economic and operational information to create schedule recommendations that are both profitable and feasible.

http://www.sabreairlinesolutions.com/home/software_solutions/product/passenger_connectivity_optimization/

[TallGuyJohninBKK]

I read a few days ago, in ‘The paper that must not be named’, that THAI is about to appoint a foreign airline professional as vice-president of sales.

An Australian, Bryan Banston has 30 years of airline experience, he will receive a basic salary of 650,000 baht a month, a monthly travel allowance of 70,000 baht and a housing allowance of 100,000 baht.

From the prior news reports I'm reading, Banston lasted just about one year in his Australasia job at Emirates, before being replaced by a former Quantas exec and leaving the company -- without any public elaboration.

http://www.smh.com.au/business/aviation/emirates-hires-former-qantas-exec-rob-gurney-20140925-10mb2p.html

[Mr Creosote]

Great, even smaller seats. I hate flying on TG for many reasons but small seats is the clincher. I suppose the "strategy" is to send more flights to China and pack more of them onto the planes.

[Mises]

Not a single praise for this airline so far, let me provide some balance.

"On routes between BKK and the UK for example Thai are at best double the price of qatar & Etihad"

Thai may be expensive BKK-LHR return but no way is it consistently double. All airlines tend to be able to charge more for flights originating from the home country. It certainly is not the case LHR-BKK return which is now close to £500 and then you get a domestic return for about £30 extra.

"the website is terminally dysfunctional"

I can't really defend this but I found Singapore Air's worse.

"Going to the UK next week. Usually fly Thai business class. Though I would look at Emirates to see if I could do better. Emirates first class (Own cabin, horizontal flat bad and shower facilities on A380 was cheaper than Thai business class by quite a big margin."

Emirates first does not compare well with Thai first although it is 3 years since I flew Emirates.

"Only down side is stop in Dubai" Exactly. A deal breaking downside for me. You've been asleep a couple of hours when you are woken up for landing so you can walk around like a zombie for 2 or more hours before you can get on another plane and sleep some more.

"Google needs to tweek the algorithm a bit so as not to place Thai ads on threads slamming Thai Airways"

Use an Ad-blocker. Not all of us slam.

"It's funny that they focus just on the revenue forecasts and not operating profits.

You know why? It hasn't made money in decades. Losses every year."

Not true, Thai made a profit when Amranand was CEO but Yingluk/Thaksin sacked him for political reasons and appointed a university academic who thought improving the quality of rice served on-board was the answer. Thai could do well to pay PTT and Amranand whatever it takes to get him back again.

"I read a few days ago, in The paper that must not be named, that THAI is about to appoint a foreign airline professional as vice-president of sales."

This is a good thing, you don't get much more international than an airline and senior staff should reflect this.

"Great, even smaller seats. I hate flying on TG for many reasons but small seats is the clincher"

I am 100% certain that Thai's planes are the same width as other airlines Boeings and Airbuses so the seats are not narrower, they also have a pitch equal to or in many cases 2" more than many others

Thai Airways is a great airline despite its senior management, I fly LHR-BKK-HKT return about 8-10 times a year in all classes depending on how extravagant I feel and how full the plane is and I have only once ever had one bad (lazy) crew in six years. The front line staff including are friendly and efficient, the London office provides exceptional service I have not experienced elsewhere. The food regularly wins awards, the planes are always clean and I am satisfied that the safety issues raised about Thailand do not involve Thai Airways. The loyalty scheme for regular flyers is unsurpassed elsewhere.

Yes, they need to stop employing useless ex-airforce people in senior positions and their equally inept children in the IT department. Plus put a stop to the free flights for TIPs and ex-exects which Amranand was in the process of doing. But they have great frontline staff, a modern fleet and a wonderful country as the base (politics and RTP excepted) so a return to profits just requires decent senior management.

[Mr Creosote]

Not a single praise for this airline so far, let me provide some balance.

"On routes between BKK and the UK for example Thai are at best double the price of qatar & Etihad"

Thai may be expensive BKK-LHR return but no way is it consistently double. All airlines tend to be able to charge more for flights originating from the home country. It certainly is not the case LHR-BKK return which is now close to £500 and then you get a domestic return for about £30 extra.

"the website is terminally dysfunctional"

I can't really defend this but I found Singapore Air's worse.

"Going to the UK next week. Usually fly Thai business class. Though I would look at Emirates to see if I could do better. Emirates first class (Own cabin, horizontal flat bad and shower facilities on A380 was cheaper than Thai business class by quite a big margin."

Emirates first does not compare well with Thai first although it is 3 years since I flew Emirates.

"Only down side is stop in Dubai" Exactly. A deal breaking downside for me. You've been asleep a couple of hours when you are woken up for landing so you can walk around like a zombie for 2 or more hours before you can get on another plane and sleep some more.

"Google needs to tweek the algorithm a bit so as not to place Thai ads on threads slamming Thai Airways"

Use an Ad-blocker. Not all of us slam.

"It's funny that they focus just on the revenue forecasts and not operating profits.

You know why? It hasn't made money in decades. Losses every year."

Not true, Thai made a profit when Amranand was CEO but Yingluk/Thaksin sacked him for political reasons and appointed a university academic who thought improving the quality of rice served on-board was the answer. Thai could do well to pay PTT and Amranand whatever it takes to get him back again.

"I read a few days ago, in The paper that must not be named, that THAI is about to appoint a foreign airline professional as vice-president of sales."

This is a good thing, you don't get much more international than an airline and senior staff should reflect this.

"Great, even smaller seats. I hate flying on TG for many reasons but small seats is the clincher"

I am 100% certain that Thai's planes are the same width as other airlines Boeings and Airbuses so the seats are not narrower, they also have a pitch equal to or in many cases 2" more than many others

Thai Airways is a great airline despite its senior management, I fly LHR-BKK-HKT return about 8-10 times a year in all classes depending on how extravagant I feel and how full the plane is and I have only once ever had one bad (lazy) crew in six years. The front line staff including are friendly and efficient, the London office provides exceptional service I have not experienced elsewhere. The food regularly wins awards, the planes are always clean and I am satisfied that the safety issues raised about Thailand do not involve Thai Airways. The loyalty scheme for regular flyers is unsurpassed elsewhere.

Yes, they need to stop employing useless ex-airforce people in senior positions and their equally inept children in the IT department. Plus put a stop to the free flights for TIPs and ex-exects which Amranand was in the process of doing. But they have great frontline staff, a modern fleet and a wonderful country as the base (politics and RTP excepted) so a return to profits just requires decent senior management.

If they are planning to pack more people onto the planes, they they will have to reduce seat width (or completely redesign cabin classes removing 1st class). On a flight to HK recently, I had to squash into the seat and basically sit on one buttock the whole way there (my height is 194cm @ 104kg so I am fairly sensitive about seat widths and leg room).

Edited January 19, 2016 by Mr Creosote

[sebastion]

Not a single praise for this airline so far, let me provide some balance.

"On routes between BKK and the UK for example Thai are at best double the price of qatar & Etihad"

Thai may be expensive BKK-LHR return but no way is it consistently double. All airlines tend to be able to charge more for flights originating from the home country. It certainly is not the case LHR-BKK return which is now close to £500 and then you get a domestic return for about £30 extra.

"the website is terminally dysfunctional"

I can't really defend this but I found Singapore Air's worse.

"Going to the UK next week. Usually fly Thai business class. Though I would look at Emirates to see if I could do better. Emirates first class (Own cabin, horizontal flat bad and shower facilities on A380 was cheaper than Thai business class by quite a big margin."

Emirates first does not compare well with Thai first although it is 3 years since I flew Emirates.

"Only down side is stop in Dubai" Exactly. A deal breaking downside for me. You've been asleep a couple of hours when you are woken up for landing so you can walk around like a zombie for 2 or more hours before you can get on another plane and sleep some more.

"Google needs to tweek the algorithm a bit so as not to place Thai ads on threads slamming Thai Airways"

Use an Ad-blocker. Not all of us slam.

"It's funny that they focus just on the revenue forecasts and not operating profits.

You know why? It hasn't made money in decades. Losses every year."

Not true, Thai made a profit when Amranand was CEO but Yingluk/Thaksin sacked him for political reasons and appointed a university academic who thought improving the quality of rice served on-board was the answer. Thai could do well to pay PTT and Amranand whatever it takes to get him back again.

"I read a few days ago, in The paper that must not be named, that THAI is about to appoint a foreign airline professional as vice-president of sales."

This is a good thing, you don't get much more international than an airline and senior staff should reflect this.

"Great, even smaller seats. I hate flying on TG for many reasons but small seats is the clincher"

I am 100% certain that Thai's planes are the same width as other airlines Boeings and Airbuses so the seats are not narrower, they also have a pitch equal to or in many cases 2" more than many others

Thai Airways is a great airline despite its senior management, I fly LHR-BKK-HKT return about 8-10 times a year in all classes depending on how extravagant I feel and how full the plane is and I have only once ever had one bad (lazy) crew in six years. The front line staff including are friendly and efficient, the London office provides exceptional service I have not experienced elsewhere. The food regularly wins awards, the planes are always clean and I am satisfied that the safety issues raised about Thailand do not involve Thai Airways. The loyalty scheme for regular flyers is unsurpassed elsewhere.

Yes, they need to stop employing useless ex-airforce people in senior positions and their equally inept children in the IT department. Plus put a stop to the free flights for TIPs and ex-exects which Amranand was in the process of doing. But they have great frontline staff, a modern fleet and a wonderful country as the base (politics and RTP excepted) so a return to profits just requires decent senior management.

I can't link the financials as the emotioncons disrupt the link.

Thai runs at -30% basically year on year.

Edited January 19, 2016 by sebastion

[chilli42]

Dreaming is free. Keep dreaming.

[Prbkk]

Not a single praise for this airline so far, let me provide some balance.

"On routes between BKK and the UK for example Thai are at best double the price of qatar & Etihad"

Thai may be expensive BKK-LHR return but no way is it consistently double. All airlines tend to be able to charge more for flights originating from the home country. It certainly is not the case LHR-BKK return which is now close to £500 and then you get a domestic return for about £30 extra.

"the website is terminally dysfunctional"

I can't really defend this but I found Singapore Air's worse.

"Going to the UK next week. Usually fly Thai business class. Though I would look at Emirates to see if I could do better. Emirates first class (Own cabin, horizontal flat bad and shower facilities on A380 was cheaper than Thai business class by quite a big margin."

Emirates first does not compare well with Thai first although it is 3 years since I flew Emirates.

"Only down side is stop in Dubai" Exactly. A deal breaking downside for me. You've been asleep a couple of hours when you are woken up for landing so you can walk around like a zombie for 2 or more hours before you can get on another plane and sleep some more.

"Google needs to tweek the algorithm a bit so as not to place Thai ads on threads slamming Thai Airways"

Use an Ad-blocker. Not all of us slam.

"It's funny that they focus just on the revenue forecasts and not operating profits.

You know why? It hasn't made money in decades. Losses every year."

Not true, Thai made a profit when Amranand was CEO but Yingluk/Thaksin sacked him for political reasons and appointed a university academic who thought improving the quality of rice served on-board was the answer. Thai could do well to pay PTT and Amranand whatever it takes to get him back again.

"I read a few days ago, in The paper that must not be named, that THAI is about to appoint a foreign airline professional as vice-president of sales."

This is a good thing, you don't get much more international than an airline and senior staff should reflect this.

"Great, even smaller seats. I hate flying on TG for many reasons but small seats is the clincher"

I am 100% certain that Thai's planes are the same width as other airlines Boeings and Airbuses so the seats are not narrower, they also have a pitch equal to or in many cases 2" more than many others

Thai Airways is a great airline despite its senior management, I fly LHR-BKK-HKT return about 8-10 times a year in all classes depending on how extravagant I feel and how full the plane is and I have only once ever had one bad (lazy) crew in six years. The front line staff including are friendly and efficient, the London office provides exceptional service I have not experienced elsewhere. The food regularly wins awards, the planes are always clean and I am satisfied that the safety issues raised about Thailand do not involve Thai Airways. The loyalty scheme for regular flyers is unsurpassed elsewhere.

Yes, they need to stop employing useless ex-airforce people in senior positions and their equally inept children in the IT department. Plus put a stop to the free flights for TIPs and ex-exects which Amranand was in the process of doing. But they have great frontline staff, a modern fleet and a wonderful country as the base (politics and RTP excepted) so a return to profits just requires decent senior management.

Strongly agree with one part of this: Thai staff OUTSIDE Thailand are great...helpful, professional , accommodating and remarkably loyal to the carrier. Without that I would have given TG the flick years ago.

[BORRISGOODENUF]

Well well, to achieve those goals, firstly have to actually fly some where, sell more seats at a competitive price instead of exorbitant pricing that exist, improve on-board services and attitudes, stop rushing food once at cruising altitude and continue service to passengers after the late meal. instead of closing the curtains and telling passengers "no! can not!!"

[Skywalker69]

Christ sake what planet are these people on. They are talking about "remaining competitive". On routes between BKK and the UK for example Thai are at best double the price of qatar & etihad. And with affiliate partners to European destinations sometimes as high as 4 times the price of the cheapest carriers.

I can't honestly think how they'll compete until they reduce fares dramatically.

Copenhagen-Bangkok with Thai +14 000 sek 18/3 (With the lowest fuelcost in 20 years)

I flew from BKK to Copenhagen the 6/1 this year and the service was very bad and the food not eatble.

Qantas Stockholm-Dhoa-Bangkok 6 900 sek Dreamliner to Doha Boing A380 to Bangkok

Guess witch one I boked.

[trogers]

Not a single praise for this airline so far, let me provide some balance.

"On routes between BKK and the UK for example Thai are at best double the price of qatar & Etihad"

Thai may be expensive BKK-LHR return but no way is it consistently double. All airlines tend to be able to charge more for flights originating from the home country. It certainly is not the case LHR-BKK return which is now close to £500 and then you get a domestic return for about £30 extra.

"the website is terminally dysfunctional"

I can't really defend this but I found Singapore Air's worse.

"Going to the UK next week. Usually fly Thai business class. Though I would look at Emirates to see if I could do better. Emirates first class (Own cabin, horizontal flat bad and shower facilities on A380 was cheaper than Thai business class by quite a big margin."

Emirates first does not compare well with Thai first although it is 3 years since I flew Emirates.

"Only down side is stop in Dubai" Exactly. A deal breaking downside for me. You've been asleep a couple of hours when you are woken up for landing so you can walk around like a zombie for 2 or more hours before you can get on another plane and sleep some more.

"Google needs to tweek the algorithm a bit so as not to place Thai ads on threads slamming Thai Airways"

Use an Ad-blocker. Not all of us slam.

"It's funny that they focus just on the revenue forecasts and not operating profits.

You know why? It hasn't made money in decades. Losses every year."

Not true, Thai made a profit when Amranand was CEO but Yingluk/Thaksin sacked him for political reasons and appointed a university academic who thought improving the quality of rice served on-board was the answer. Thai could do well to pay PTT and Amranand whatever it takes to get him back again.

"I read a few days ago, in The paper that must not be named, that THAI is about to appoint a foreign airline professional as vice-president of sales."

This is a good thing, you don't get much more international than an airline and senior staff should reflect this.

"Great, even smaller seats. I hate flying on TG for many reasons but small seats is the clincher"

I am 100% certain that Thai's planes are the same width as other airlines Boeings and Airbuses so the seats are not narrower, they also have a pitch equal to or in many cases 2" more than many others

Thai Airways is a great airline despite its senior management, I fly LHR-BKK-HKT return about 8-10 times a year in all classes depending on how extravagant I feel and how full the plane is and I have only once ever had one bad (lazy) crew in six years. The front line staff including are friendly and efficient, the London office provides exceptional service I have not experienced elsewhere. The food regularly wins awards, the planes are always clean and I am satisfied that the safety issues raised about Thailand do not involve Thai Airways. The loyalty scheme for regular flyers is unsurpassed elsewhere.

Yes, they need to stop employing useless ex-airforce people in senior positions and their equally inept children in the IT department. Plus put a stop to the free flights for TIPs and ex-exects which Amranand was in the process of doing. But they have great frontline staff, a modern fleet and a wonderful country as the base (politics and RTP excepted) so a return to profits just requires decent senior management.

I can't link the financials as the emotioncons disrupt the link.

Thai runs at -30% basically year on year.

This shows a exponential trend - ?