Thai Airways International (THAI) president Charamporn Jotikasthira has defended the company's decision to hire consultant firm Bain & Company, saying it needs the world-class aviation expert to provide advice.
He was responding to a call by former THAI executives and shareholders for the airline's executives to disclose information on the hiring of Bain for 40 million baht to map out the carrier's reform plan.
They earlier claimed a Bain executive had worked for L.E.K., another consultant, and Temasek Holdings which owns rival Singapore Airlines, raising concerns about conflicts of interest and the leaking of confidential THAI information to competitors.
Speaking at the shareholders' meeting on Friday, Mr Charamporn said it was necessary to employ a consultancy firm with experience in the global aviation business to lay out a reform plan following changes in the global airline industry.
These changes were the result of oil price fluctuations, the EU economic downturn and political unrest, he said.
Some former executives expressed concerns that the recent suspension of several THAI routes would play into the hands of competitors, Mr Charamporn said.
He added the company's board and executives broadly discussed the issue and decided the route cuts could help reduce the carrier's financial burdens.
One was the Bangkok-Moscow route which led to some 300 million baht in annual losses.
Montree Jumrieng, THAI's executive vice-president for Corporate Strategy and Sustainable Development, dismissed concerns that NokScoot airline, a joint venture of Thailand’s Nok Air and Singapore-based Scoot, is allowed to fly some routes on which THAI operates.