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Thai Airways at risk of closure, president says

Thai Airways at risk of closure, president says

BANGKOK: 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.

Tuesday 22 October 2019, 07:37PM


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.

UWC Thailand

“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 B6.44 billion, raising its accumulated loss to B280bn. It employs more than 20,000 people.

 Mr Sumeth’s warning today followed him yesterday announcing that THAI is planning to cancel six flight routes to Laos, Cambodia, Vietnam and Myanmar.

He said these routes are all covered by a small number of flights and have low customer capacity, and THAI will assign Thai Smile Airways to cover these routes instead, reported state news agency NNT.

Read original story here.

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Christy Sweet | 23 October 2019 - 14:51:20

A classic for the You know you're in Thailand when files..A  CEO issues a statement telling employees to stop ripping off the company, essentially -"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. "

Kurt | 23 October 2019 - 10:29:43

THAI participates in Star Alliance. Why the other airlines in that Alliance make profits with ticket prices that are about 60% of what a THAI passenger has to pay for a THAI ticket to fly with old shabby planes? Flew recent business class THAI ( BKK-HKT), the grey lids of overhead lockers were dirty of many greasy hands. Not cleaned for weeks.

Kurt | 23 October 2019 - 10:11:19

Red in BP that the Board complemented Mr Sumeth with his excellent management performance!  Wow! Not much hope for Thai Airways and her 20,000 employees.

Steve wooly | 23 October 2019 - 02:30:53

such a shame I have always flown Thai and I love them great staff and good friendly service 

 

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