Head of Thai Air speaks of closure:
https://www.pattayaone.news/thai-airway ... dent-says/
Thai Airlines Shut Down?
-
Gaybutton
- Posts: 21556
- Joined: Sat Jul 31, 2010 11:21 am
- Location: Thailand
- Has thanked: 2 times
- Been thanked: 1314 times
Re: Thai Airlines Shut Down?
Apparently due to competition with low cost airlines. I think low foreign tourist numbers have something to do with it too. Whatever the reasons, it's hard to maintain an airline when passengers choose less expensive airlines.
It will certainly seem strange if all the Thailand airports end up operating with all the airlines except Thailand's own flagship airline.
According to the article, they want staff to accept salary cuts. Even if they do, I don't see how that would help very much. If they're losing customers due to low cost airlines, seems to me it would make sense to charge competitive prices and give customers incentives to choose Thai Airways over other airlines.
However, I won't be surprised if Thai airways does the same thing so many Thai owned businesses do when they find themselves in financial trouble - raise the prices . . .
_______________________________________
Thai Airways at risk of closure, president says
22 Oct 2019
Thai Airways International (THAI) president Sumeth Damrongchaitham said on Tuesday that staff must cooperate with the airline's rehabilitation efforts because it is in a crisis and faces possible closure.
He sent his message to THAI executives during a training session at the airline's headquarters.
"Today I want staff to be united to overcome the obstacles. Otherwise, the national airline must close down. There is still time for a solution, but there is not much time," Mr Sumeth said.
He said that THAI had lost its market leadership on several routes to competitors, citing northern routes that had generated a third of THAI's revenue but were now dominated by low-cost airlines.
"The competition is very fierce this year," Mr Sumeth said. "THAI is really in a crisis. Next year it must do its best. If staff are still unaware and do nothing, they will not have enough time to fight back. Today very little time remains. Today there is no comfort zone. Everyone will die if the vessel sinks," .
THAI would cut costs by reducing the salaries of managerial staff and following a zero inventory policy at its catering department, he said.
"There will be no other rewards for the staff, because the top prize is the survival of the company," Mr Sumeth said.
In the first half of this year, THAI posted a loss of 6.44 billion baht, raising its accumulated loss to 280 billion baht. It employs more than 20,000 people.
https://www.bangkokpost.com/business/17 ... ident-says
It will certainly seem strange if all the Thailand airports end up operating with all the airlines except Thailand's own flagship airline.
According to the article, they want staff to accept salary cuts. Even if they do, I don't see how that would help very much. If they're losing customers due to low cost airlines, seems to me it would make sense to charge competitive prices and give customers incentives to choose Thai Airways over other airlines.
However, I won't be surprised if Thai airways does the same thing so many Thai owned businesses do when they find themselves in financial trouble - raise the prices . . .
_______________________________________
Thai Airways at risk of closure, president says
22 Oct 2019
Thai Airways International (THAI) president Sumeth Damrongchaitham said on Tuesday that staff must cooperate with the airline's rehabilitation efforts because it is in a crisis and faces possible closure.
He sent his message to THAI executives during a training session at the airline's headquarters.
"Today I want staff to be united to overcome the obstacles. Otherwise, the national airline must close down. There is still time for a solution, but there is not much time," Mr Sumeth said.
He said that THAI had lost its market leadership on several routes to competitors, citing northern routes that had generated a third of THAI's revenue but were now dominated by low-cost airlines.
"The competition is very fierce this year," Mr Sumeth said. "THAI is really in a crisis. Next year it must do its best. If staff are still unaware and do nothing, they will not have enough time to fight back. Today very little time remains. Today there is no comfort zone. Everyone will die if the vessel sinks," .
THAI would cut costs by reducing the salaries of managerial staff and following a zero inventory policy at its catering department, he said.
"There will be no other rewards for the staff, because the top prize is the survival of the company," Mr Sumeth said.
In the first half of this year, THAI posted a loss of 6.44 billion baht, raising its accumulated loss to 280 billion baht. It employs more than 20,000 people.
https://www.bangkokpost.com/business/17 ... ident-says
-
Jun
Re: Thai Airlines Shut Down?
I would have thought Thai air salaries would already be lower than in many of their international destinations, such as in Europe, US, Japan, Singapore & Malaysia.
-
stkyricesf
Re: Thai Airlines Shut Down?
Although EVA is my prefered airline, I always wanted to try Thai Air just once. Unfortunately they didn't leave from SFO/Bay Area.
-
2lz2p
- Posts: 967
- Joined: Sun Aug 01, 2010 8:08 am
- Location: Pattaya, Thailand (Jomtien)
- Has thanked: 149 times
- Been thanked: 114 times
Re: Thai Airlines Shut Down?
My first trip to Thailand was with Thai in 1985 or 1986, from Dallas, Texas via Seattle & Tokyo to Bangkok. They operated this route only for a few years - after my first trip, I started visiting annually with the next two trips also on Thai from Dallas. After that, I used different airlines mostly because I could upgrade or get a free trip using my frequent flyer miles. At the time of that first trip, service was excellent and Thai was, if I recall correctly, considered to be one of the top 5 (or maybe it was 10) airlines.stkyricesf wrote: ↑Wed Oct 23, 2019 5:05 am Although EVA is my prefered airline, I always wanted to try Thai Air just once. Unfortunately they didn't leave from SFO/Bay Area.
However, as time has gone by, reports are that they have fallen considerably in the service category while their prices have increased to where they are not very competitive with not only the low cost carriers, but with other comparable airlines.
After retiring here about 17 years ago next month, I returned annually to USA until making my last trip in 2008. Those trips were mostly on EVA - a very good airline. Their economy plus gave more room for not much more than regular economy seats and worth the differential.
-
Jun
Re: Thai Airlines Shut Down?
The closest I have got to flying Thai Air has been Thai Smile for short haul trips. The most recent was Bangkok to Phnom Penh.stkyricesf wrote: ↑Wed Oct 23, 2019 5:05 am Although EVA is my prefered airline, I always wanted to try Thai Air just once. Unfortunately they didn't leave from SFO/Bay Area.
From London to Bangkok, EVA had the best price the first time I flew and I like them so much that I've used them every time since.
Last time I was leaving Bangkok, some Thai flights were cancelled as the airspace over Pakistan was closed. The normal EVA route also goes over Pakistan, however unlike Thai, EVA managed to operate their flights with a detour south of the country. I like airlines who make an effort to keep their service running. Also, competition is a good thing.
Re: Thai Airlines Shut Down?
There are several countries, mostly East-EUR and SOuth-America, where the national pride flagship airline has folded up. F.e. HUngary, Slovakia, Bulgaria, VARIG/Brazil, others have re-merged after failure: Even SWISSair! and Sabena/BElgium. Closeby to Th PAL=Phillippines, hardly escaped failure, but had to trim down considerably.
The major prob of TG is the ''speaks for itself'' attitude where about anyone slightly higher up in the national Thai govmt. circles can claim a free bis or even 1st seat for his/her minor smuggling holiday trips to Japan or SIN. Second somes the (corruption, aka tea-money) enormous varied assembly of about any type of airplane they have collected in the years-means extremely high maintenance. note that any of the dirt-cheap budget airlines have a single-type fleet. Its commonly known that TG is mostly staffed by ex-airforce flying pilots and daughters of high-up circles in the Thai burocrazynes for stewardesses.
This speech (since I am in pension now for a few yrs i dont have to do anymore with all travel-info, happily!) seems mostly aimed at that staff preparing them for unraised wages and more working hours-still keeping them grossly overpaid compared to ThaiAsia etc. staff. Plus closure of routes that are definitely unprofiatble and thus can shed away with various small nrs of unwanted/overaged aircraft.
The major prob of TG is the ''speaks for itself'' attitude where about anyone slightly higher up in the national Thai govmt. circles can claim a free bis or even 1st seat for his/her minor smuggling holiday trips to Japan or SIN. Second somes the (corruption, aka tea-money) enormous varied assembly of about any type of airplane they have collected in the years-means extremely high maintenance. note that any of the dirt-cheap budget airlines have a single-type fleet. Its commonly known that TG is mostly staffed by ex-airforce flying pilots and daughters of high-up circles in the Thai burocrazynes for stewardesses.
This speech (since I am in pension now for a few yrs i dont have to do anymore with all travel-info, happily!) seems mostly aimed at that staff preparing them for unraised wages and more working hours-still keeping them grossly overpaid compared to ThaiAsia etc. staff. Plus closure of routes that are definitely unprofiatble and thus can shed away with various small nrs of unwanted/overaged aircraft.
-
Undaunted
- Posts: 2572
- Joined: Fri Aug 12, 2016 8:47 am
- Has thanked: 23 times
- Been thanked: 368 times
Re: Thai Airlines Shut Down?
I flew Thai years ago when they had the non stop BKK-JFK route.....No complaints other than the 19 hour flight.
"In the land of the blind the one eyed man is king"
-
Gaybutton
- Posts: 21556
- Joined: Sat Jul 31, 2010 11:21 am
- Location: Thailand
- Has thanked: 2 times
- Been thanked: 1314 times
Re: Thai Airlines Shut Down?
Now the story has done a 180 . . .
_____________________________
Thai Airways not at risk of shutting down, says airline president
October 23, 2019
Thai Airways International Plc (THAI) is not at risk of shutting down and recent news reports about the airline's situation were "misinterpreted", THAI president Sumeth Damrongchaitham insisted on Wednesday.
He was responding to media reports about a possible closure during remarks he made to high-ranking THAI staff.
He said the remarks were to encourage staff to make an all-out effort to ensure the struggling airline's rehabilitation plan succeeds.
Mr Sumeth said the remarks made during a discussion with executives on Tuesday were "misinterpreted" as meaning the airline faced possible closure.
The discussion took place during a training session at the airline's headquarters to remind them of the level of competition in the aviation industry.
He rejected the possibility of the flag carrier closing down, but admitted having to battle stiff competition, including from low-cost carriers.
With competition in the airline industry becoming more fierce, he said he had emphasised the importance and urgent need to overcome obstacles confronting the airline.
THAI staff were urged to take heed of how competitive the airline is in all areas of business, such as low-cost carrier competition, air fare promotions, and "cut throat" route competition in certain markets.
"THAI confirms it is perfectly capable to perform exceptionally amid tough airline competition," he said in a statement issued by the airline.
Mr Sumeth said he spoke to staff in order to motivate them to take immediate action to cut costs and boost profits.
"In an era when customers have so many offers to hand amid fierce airline competition, employees were asked to join forces and work to beat the competition for the inevitable achievement of improved operational results," he said.
He also dismissed media reports that the airline was looking to stop flying to four destinations within the Asean region.
THAI has no plan to drop any routes, he said.
THAI is the national carrier and a state enterprise under the Transport Ministry.
According to the Stock Exchange of Thailand, the Finance Ministry is the largest shareholders with a 51.03% stake in the airline together with the state-run Vayupak Fund which holds another 15.16%.
https://www.bangkokpost.com/business/17 ... -president
_____________________________
Thai Airways not at risk of shutting down, says airline president
October 23, 2019
Thai Airways International Plc (THAI) is not at risk of shutting down and recent news reports about the airline's situation were "misinterpreted", THAI president Sumeth Damrongchaitham insisted on Wednesday.
He was responding to media reports about a possible closure during remarks he made to high-ranking THAI staff.
He said the remarks were to encourage staff to make an all-out effort to ensure the struggling airline's rehabilitation plan succeeds.
Mr Sumeth said the remarks made during a discussion with executives on Tuesday were "misinterpreted" as meaning the airline faced possible closure.
The discussion took place during a training session at the airline's headquarters to remind them of the level of competition in the aviation industry.
He rejected the possibility of the flag carrier closing down, but admitted having to battle stiff competition, including from low-cost carriers.
With competition in the airline industry becoming more fierce, he said he had emphasised the importance and urgent need to overcome obstacles confronting the airline.
THAI staff were urged to take heed of how competitive the airline is in all areas of business, such as low-cost carrier competition, air fare promotions, and "cut throat" route competition in certain markets.
"THAI confirms it is perfectly capable to perform exceptionally amid tough airline competition," he said in a statement issued by the airline.
Mr Sumeth said he spoke to staff in order to motivate them to take immediate action to cut costs and boost profits.
"In an era when customers have so many offers to hand amid fierce airline competition, employees were asked to join forces and work to beat the competition for the inevitable achievement of improved operational results," he said.
He also dismissed media reports that the airline was looking to stop flying to four destinations within the Asean region.
THAI has no plan to drop any routes, he said.
THAI is the national carrier and a state enterprise under the Transport Ministry.
According to the Stock Exchange of Thailand, the Finance Ministry is the largest shareholders with a 51.03% stake in the airline together with the state-run Vayupak Fund which holds another 15.16%.
https://www.bangkokpost.com/business/17 ... -president
-
gkwanger
Re: Thai Airlines Shut Down?
What could "save" Thai Airways? They, meaning current management and the Thai government, need to hire an established airline executive, who has been successful running a profit-based operation, and give him the unfettered authority to run Thai Airways. Certainly no guarantee of success, given the momentum of what I call "welfare air." Otherwise, IMO can't see the government allowing a failure. There are lots of issues holding back TG's viability, just one of which I'm aware of is their sub-par aircraft maintenance, so basic to the running of any airline. Because U.S. regulators have deemed TG's maintenance unsatisfactory, it is restricted from operating in the U.S. market. Not many international airlines can be successful without any access to this market.