Deputy PM Somkid satisfied with THAI's performance

[webfact]

Deputy PM satisfied with THAI's performance

BANGKOK, 16 February 2016 (NNT) - Deputy Prime Minister Somkid Jatusripitak has expressed satisfaction with the Thai Airways International (THAI)'s improving performance and instructed the company to develop a long-term plan for the next five and 10 years.

The deputy premier on Monday inspected the performance of the national airline, saying the company’s report showed that it had well executed a rehabilitation plan which had resulted in better performance. The airline had already hit the lowest point and from now on it would start to grow, he said.

Mr.Somkid emphasized that the company had to enhance its efficiency so that it was able to compete with other airlines. The national carrier was also told to operate new routes, especially those which connect Thailand with major cities in Asia, in order to attract tourists.

The deputy PM instructed the company to submit its long-term plan to the state enterprise board within two months. The plan is expected to help increase tourist arrivals to Thailand.

Meanwhile, Thai Airways International President Charumporn Jotikasthira expressed confidence that the company had already passed a critical period and it was now ready to be ASEAN’s leading airline in support of the Thai tourism’s growth in the future.


-- NNT 2016-02-16

[Ricardo]

" The airline had already hit the lowest point and from now on it would start to grow, he said. "

Famous last words ?

" and instructed the company to develop a long-term plan for the next five and 10 years. "

Surely they already do long-term planning, or how do they know what new aircraft to order & what to try to sell, as they have done over the past few years ? By all means present the on-going plan, to the new state-enterprise board, but let's not pretend it's something new !

And isn't the current objective to stop running at a loss, rather than only opening new routes, the vast majority of future growth in tourists will still be carried on other (foreign) airlines, you don't need a national-carrier to boost arrivals ?

[PaullyW]

" The airline had already hit the lowest point and from now on it would start to grow, he said. "

Famous last words ?

" and instructed the company to develop a long-term plan for the next five and 10 years. "

Surely they already do long-term planning, or how do they know what new aircraft to order & what to try to sell, as they have done over the past few years ? By all means present the on-going plan, to the new state-enterprise board, but let's not pretend it's something new !

And isn't the current objective to stop running at a loss, rather than only opening new routes, the vast majority of future growth in tourists will still be carried on other (foreign) airlines, you don't need a national-carrier to boost arrivals ?

Have you ever worked in or for a Thai private or govt company? If so, you might reconsider the guess that they'd be properly planning longterm!

Thai organizations are defined mostly by varying degrees of semi organised, reactive chaos. Nobody takes a long view.

(I've done projects with some of the biggest companies in the country through my MNC consulting practice. Every single Thai company exhibited this trait.)

[kingalfred]

Thai Airways.beyond a joke

[Searat7]

No mention of reducing the bloated payroll and they still have many old planes to sell including 10 A-340's which will probably have to be sold at a big loss. There will be no meaningful turnaround until a foreign CEO with turnaround experience is hired and given free reign to make the tough decisions.

[Srikcir]

the company had to enhance its efficiency so that it was able to compete with other airlines.

TRANSLATION:

Still not competitive. There's no magic financial bullet to save Thai Airways in the short-term and more stringent measures are needed to grwo profits.

[waldroj]

"The airline had already hit the lowest point..."!

One wonders what new lows it can climb to when fuel prices start to increase.

[user82374298374]

Every single Thai exhibited this trait.

FTFY.

[Srikcir]

" The airline had already hit the lowest point and from now on it would start to grow, he said. "

Famous last words ?

" and instructed the company to develop a long-term plan for the next five and 10 years. "

Surely they already do long-term planning, or how do they know what new aircraft to order & what to try to sell, as they have done over the past few years ? By all means present the on-going plan, to the new state-enterprise board, but let's not pretend it's something new !

And isn't the current objective to stop running at a loss, rather than only opening new routes, the vast majority of future growth in tourists will still be carried on other (foreign) airlines, you don't need a national-carrier to boost arrivals ?

isn't the current objective to stop running at a loss

Having an objective doesn't necessarily mean success. Thai Airway's losses are exerbated by an endemicThai economy:

2015Q1 - net profit of Bt4.54 billion compared a net loss of Bt2.634 billion in the first quarter 2014. But profit for 2012 was Bt.6 billion

2015Q2 - net loss of Bt12.8 billion largely due to weak cargo demand down almost 23% year-on-year in the quarter.

2015Q3 - net loss of Bt9.9 billion due a weak currency and drop in overall cargo volumes despite 8% rise in passenger traffic.

TAI has been dropping unprofitable routes, increasing passenger loads, selling unneeded aircraft, cutting operation costs, etc. But there's not much TAI can do about a currency and virtual freeze in foreign trade. That is the domain of the Prayut government who ultimately must be held responsible for TAI's economic failure.

[bangon04]

" and instructed the company to develop a long-term plan for the next five and 10 years."

Once again the government needs to tell its own officers to do the job they are already paid for. Seems to be a normal part of the government spokesman's duty in Thailand is to state the blee***g obvious.

[Ricardo]

" The airline had already hit the lowest point and from now on it would start to grow, he said. "

Famous last words ?

" and instructed the company to develop a long-term plan for the next five and 10 years. "

Surely they already do long-term planning, or how do they know what new aircraft to order & what to try to sell, as they have done over the past few years ? By all means present the on-going plan, to the new state-enterprise board, but let's not pretend it's something new !

And isn't the current objective to stop running at a loss, rather than only opening new routes, the vast majority of future growth in tourists will still be carried on other (foreign) airlines, you don't need a national-carrier to boost arrivals ?

Have you ever worked in or for a Thai private or govt company? If so, you might reconsider the guess that they'd be properly planning longterm!

Thai organizations are defined mostly by varying degrees of semi organised, reactive chaos. Nobody takes a long view.

(I've done projects with some of the biggest companies in the country through my MNC consulting practice. Every single Thai company exhibited this trait.)

No,,I've never worked in Thailand, and can't due to my visa-restrictions. Although it might well be an interesting experience.

But I have worked on fleet-planning & expansion, among other things, for a profitable British airline in the past.

And we certainly didn't need our shareholders to tell us to do so, as the DPM appears to think, Thai International's management need to be told !

I suspect this is more to do with a perceived-need to be seen to be important, and doing something or anything, about this long-struggling/failing 51%-government-owned business. (See http://thai.listedcompany.com/shareholdings.html for details of some of the other shareholders)

The DPM appears to believe that TG exists mainly to carry tourists to Thailand, I'd put breaking-even or running a reasonable profit ahead of that, the tourists will still come (or not) regardless of which airline carries them. I don't accept that there is any shortage of capacity in regional aviation.

And when he claims that "it was now ready to be ASEAN’s leading airline", well I think that Singapore Airlines or Garuda might well have something to say, about that assertion ! Not to mention Cathay Pacific and others.

Only one of the seven Skytrax 5-star airlines is not asian, in fact. http://www.airlinequality.com/ratings/5-star-airline-ratings/

[Rayk]

Once you hit the bottom there is only one way to go.

[jerojero]

Yes, Thai keep losing money for the next ten years. He should be very satisfied indeed. Oh....please raise prices more? Thank you.

[kingalfred]

No mention of reducing the bloated payroll and they still have many old planes to sell including 10 A-340's which will probably have to be sold at a big loss. There will be no meaningful turnaround until a foreign CEO with turnaround experience is hired and given free reign to make the tough decisions.

A foreigner given free reign at a thai company? A snowballs chance in hell of that!

[Oink]

Once you hit the bottom there is only one way to go.

Start digging?

[waldroj]

Not only are they a hopeless management team, but they also leak (see attached statement)!

160220160944590270E.pdf

[Ricardo]

Once you hit the bottom there is only one way to go.

Bankrupt ?

[darren84310]

Well, they've managed to lose 1400 GBP from my brother and his wife because they don't allow you to pre-book seats, so they are flying with BA who have charged them 70 GBP each for the privilege.... Thai Airways policy is first come first served at check-in.

Poor business sense from Thai as they could be sitting with another 80,000 baht in the bank now and times that by however many others have done the same.

[joy16]

Well, they've managed to lose 1400 GBP from my brother and his wife because they don't allow you to pre-book seats, so they are flying with BA who have charged them 70 GBP each for the privilege.... Thai Airways policy is first come first served at check-in.

Poor business sense from Thai as they could be sitting with another 80,000 baht in the bank now and times that by however many others have done the same.

Really? If it is the international flight, it can pre-book seat. Only domestic flight is first come first serve basis but it can book seat during online check-in 24 hrs prior scheduled flight.