THAI to miss its revenue target for this year

[rooster59]

THAI to miss its revenue target for this year

By SUCHAT SRITAMA 
THE SUNDAY NATION

 

File photo: THAI president Charamporn Jotikasthira

 

NATIONAL FLAG carrier Thai Airways International has admitted that it may be unable to achieve this year’s revenue target of Bt180 billion due to tough global competition and airline’s uncompleted management plans.

 

The carrier is also facing a slump in business in key markets including mainland China due to a crackdown on “zero dollar” tours, THAI president Charamporn Jotikasthira said.

 

Full story: http://www.nationmultimedia.com/news/national/30299870

 

 

 

-- © Copyright The Nation 2016-11-13

[taff33]

You don't think it's because of your prices do you?

[Briggsy]

Fear not, after cutting through all the distracting flack and noise, you will find the taxpayer meekly standing and waiting with cheque book in hand ready to pick up the tab as they have always done with THAI and always will.

 

The trouble with the airline industry for THAI is that it is more difficult, but certainly not impossible, to deny customers choice and thus force them to your products. A monopoly or at the very least a rigged competitive environment is much more difficult to create. Thus the Thai business model will not work in this industry.

[meatboy]

we used thai for over 20yrs.they were always on time arriving and leaving,we never got nothing from them considering they were more expensive than most carriers.but it was the conveinence and good staff.

over that time they never upgraded their planes and economy class was a disgrace.

so i think they lost a lot of customers the past 10yrs.so now its come to bite them on the bum.

[mercman24]

agree with Meatboy, flew with them years ago, competitive fare, all round nothing to complain about, but todays traveller is more cost aware, (the reason i never fly British Airways) today, you can get to the same destination and save a load of money by using other carriers.

[Srikcir]

5 hours ago, rooster59 said:

tough global competition and airline’s uncompleted management plans.

Flashback to February 2016:

 

"Mr.[Deputy Prime Minister] 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."

 

"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."

http://www.thaivisa.com/forum/topic/895278-deputy-pm-somkid-satisfied-with-thais-performance/

 

Continuing to Fail - a disgrace to the national flag logo.
The State needs to abandon this airline and focus on being a government.

[Searat7]

Why should they have to refurbish 787's which are practically new !  You can bet that the aircraft they want to sell include the undesirable Airbus 340's which have not been used in years. Hopefully the next president will have airline experience but I'm not holding my breath. 

[joecoolfrog]

I simply dont believe that Thai ever catered for Chinese ' Zero baht ' tourists , very poor excuse.

[dundas]

Personally, I have no complaints about Thai pricing. I paid $A1210 for Mel-BKK (stopover)- KIX  and reverse, with a second stop over in Bangkok. Inclusions:  bags (40kg allowance), food, frequent flyer points at the full rate, choice of seats, and a one night stay at the Dusit Thani in Bangkok.  The ticket has a reasonable amount of flexibility, too, I can change it if I need to. Try getting a deal like that from your average LCC. 

 

I didn't find the new 787 at all comfortable, but then Thai, like just about all airlines, ordered these 9 across, which means that shoulder room is too tight. I blame that on accountants and others who never fly in economy controlling the aviation industry, not on Thai. At least Thai still have a 32" seat pitch, which is about as good as it gets in economy these days.  I do yearn for the days of their roomy Y class cabins, though. 

[Retiredandhappyhere]

But...but...despite the drastic drop in zero-dollar tourists from China he refers to, TAT reckons that their long-standing target of 32.6 million visitors this year will still be met.  Where are the new visitors coming from, who will make up the Chinese shortfall? 

[elgordo38]

6 hours ago, taff33 said:

You don't think it's because of your prices do you?

Funny how they always come up with an out. Not just in this case but all over the board. Its like "why is it not raining?" because the rain making planes did not take off today. 

[Pib]

High ticket prices and inefficient operations makes it real tough to meet any targets.  Well, that's what you get when the Thai govt (specifically the Ministry of Finance) is the majority owner.

[arithai12]

6 hours ago, meatboy said:

we used thai for over 20yrs.they were always on time arriving and leaving,we never got nothing from them considering they were more expensive than most carriers.but it was the conveinence and good staff.

over that time they never upgraded their planes and economy class was a disgrace.

so i think they lost a lot of customers the past 10yrs.so now its come to bite them on the bum.

same here.

but I think that THAI has other problems than just the cabin factor. They are overstaffed on the ground,

and they cannot really address that.

[siam2007]

3 hours ago, joecoolfrog said:

I simply dont believe that Thai ever catered for Chinese ' Zero baht ' tourists , very poor excuse.

 

 

very true.

 

those cheap-China-Charlies always arrived on board of budget carriers, the names of some of them I have never heard even though I know a little about tourism and aviation.

 

Could it be that the losses of Thai International stem from the fact that they used to pay salaries to cabin crews double as high as in Europe and 16 salaries per year? Not sure if they still do that nowadays

[peergin]

My family and I used to fly THAI for many, many years. The airline treated its passengers with the utmost care and assistance. It was a pleasure flying with it. One thing we liked especially was that it was very flexible. For example, we always had a few spare tickets so that we (or a key member of our staff) could quickly hop onto a plane when in a hurry. Occasionally a ticket would expire but that never was a problem. THAI gladly accepted it regardless. All of that changed quite a few years ago. It changed dramatically. In fact, THAI started punishing and fleecing customers. Ground staff often lost their good manners and flexibility went out the window.

 

One day we wanted to go to Bali (Den Pasar) for a long weekend but we did not have enough frequent flyer points at that moment. So, we spent a fair amount of money and bought additional points. Then, just before we were to travel the terrible Bali bombing occurred. That scared us so we decided not to travel. We returned the tickets (with an explanation) to THAI and asked them for a refund. However, nothing doing: THAI cancelled the tickets AND the points without even notifying us. That was the end of the story from THAI’s point of view. Our protests were ignored and we never received a single Baht back.

After that we and our staff (if on company business) never flew THAI again. Meaning, we said goodbye to Thai in 2002. That was sad because it used to be such a good airline. Actually, it was our favourite airline for many years. However, we did not like to be cheated.

 

Another, incomprehensible example: friends of ours (also business people, like ourselves), travelled to Thailand on THAI to join us for a short visit. Shortly before they were to return the husband/father of the children developed a life-threatening intestinal problem. Doctors at RAM Hospital in Chiang Mai performed major surgery and he spent 2 weeks to recover somewhat. After his release from the hospital he spent another week at our home before he was able to travel again.

All of this was known immediately after the operation. The gentleman’s wife realised that the family’s tickets would expire a few days before her husband would be allowed to travel. So, she obtained written evidence from RAM Hospital to prove that they could not travel before the expiry date of their tickets. She went to THAI’s office in Chiang Mai to request a week’s extension of the validity. The airline refused and told her to buy new tickets. Eventually she did, but not from THAI.

The airline also lost these clients because to this date they have never flown THAI again, not for private, nor for business purposes. These people also did not like to be cheated.

    

THAI needs to realise that it is the customers who bring in the money AND that customers have a choice.   

[bangon04]

I held the THAI Star Alliance Gold Card for many years. I never once received any complimentary upgrade during the whole time. Then they introduced the Platinum Card above it. I was politely informed that as a Farang I would never make the grade, whatever I did. So at that point i stopped collecting THAI points. I have never missed them. 

[Briggsy]

6 minutes ago, bangon04 said:

I held the THAI Star Alliance Gold Card for many years. I never once received any complimentary upgrade during the whole time. Then they introduced the Platinum Card above it. I was politely informed that as a Farang I would never make the grade, whatever I did. So at that point i stopped collecting THAI points. I have never missed them. 

I am interested to know.

How did they inform you would never receive the Platinum Card? In writing?

Did they actually use the word 'farang'?

Did they actually state that no 'farang' would ever qualify for a Platinum Card?

 

If what you say is true, it seems very unusual for an airline in terms of communicating with its customers.

[bangon04]

14 minutes ago, Briggsy said:

I am interested to know.

How did they inform you would never receive the Platinum Card? In writing?

Did they actually use the word 'farang'?

Did they actually state that no 'farang' would ever qualify for a Platinum Card?

 

If what you say is true, it seems very unusual for an airline in terms of communicating with its customers.

As I remember it was back in early 2011. Platinum status was strictly "by invitation" and the station manager told me verbally that I would not meet their requirements because points alone were not enough - suggested politely perhaps i should apply for their AMEX card to help my case, but of course that was only available to residents of Thailand. I do know at least one politician who received a set for himself and his 2 wives.

Edited November 13, 2016 by bangon04

[Briggsy]

5 minutes ago, bangon04 said:

As I remember it was back in early 2011. Platinum status was strictly "by invitation" and the station manager told me verbally that I would not meet their requirements - suggested politely perhaps i should apply for their AMEX card to help my case, but of course that was only available to residents of Thailand.

You might want to revisit this.

 

It seems it is no longer 'by invitation' or you were misinformed.

 

I have just checked the official site and platinum status evaluation is a "system automated process" based on the level of miles travelled in first and business class. Economy class doesn't count for platinum status. I assume you always travel business class or above.

 

There is no mention of having to be a Thai resident or hold a THAI credit card or the word 'farang'.

 

So you can attain platinum status.

[hawker9000]

Me oh my oh me, but how can this BE??   I mean with tourism practically exploding & all...

[sanuk711]

On 14/11/2559 at 3:54 AM, bangon04 said:

Then they introduced the Platinum Card above it. I was politely informed that as a Farang I would never make the grade, whatever I did. 

.

An international Airline told you --that because you are white you could never get a card with them...........

.

Fantasy

1.

the faculty or activity of imagining impossible or improbable things.

2. A genre of imaginative fiction, especially in a setting other than the real world.

Oxford Dictionary

Edited November 16, 2016 by sanuk711