THAI expat deal causes a stir

THAI expat deal causes a stir

THAI, the national flag carrier, is undergoing rehabilitation. SOMCHAI POOMLARD
THAI, the national flag carrier, is undergoing rehabilitation. SOMCHAI POOMLARD

The long-held tradition of Thai Airways International (THAI) being managed entirely by Thai nationals is about to change.

The struggling flag carrier is about to appoint a foreign airline professional as a vice-president to address one of the weaknesses stalling its rehabilitation — sales.

The appointment of Australian Bryan Banston, originally from Melbourne and with more than 30 years' experience in the airline industry, is imminent pending the finalisation of his remuneration package, insiders said.

Appointing Mr Banston vice-president for sales at THAI is noteworthy primarily because he will break a taboo among Thai state enterprises, which do not normally have expats in executive positions.

Mr Banston, who previously served as vice-president for commercial operations for Australasia at Emirates, will be the first non-Thai to assume the executive post since the early 1980s, when a couple of Americans and Scandinavians held senior executive jobs at THAI.

The forthcoming appointment has fuelled criticism within airline circles, as the company's board quietly extended the employment of Wayne Pearce, a former chief executive of Oman Air, as international adviser to THAI president Charamporn Jotikasthira for another six months from the end of last year despite disagreement expressed by cabinet ministers when the appointment first took place.

Questions were raised about the generous employment package being extended to Mr Banston, regarded as exorbitant by Thai nationals.

According to guidelines recently approved by THAI's board, the Australian executive will receive a basic maximum salary of 650,000 baht a month.

That is three times the level paid to a Thai executive of equivalent corporate seniority at the airline and even higher than that of the senior executive vice-president for commercial operations.

He will be entitled to a monthly travel allowance of 70,000 baht, a housing allowance of 100,000 baht, four business-class tickets each for international and domestic travel on THAI per year, medical and insurance coverage and other fringe benefits normally received by vice-presidents of the carrier.

His employment is subject to a performance review every six months but could last until he reaches retirement age at 60.

There are questions if THAI could not find a capable Thai to do the job of the former Emirates executive but for less.

Mr Charamporn has defended the recruitment of expats for top dollar, saying the remunerations are line with international scales.

In the case of Mr Wayne, THAI has paid a 10.6 million baht fee for the first six-month stint as commerce and marketing adviser. 

The THAI president has been keen to tap foreign airline professionals' expertise to help reviving the cash-strapped airline which he committed to turn around this year after suffered 18.1 billion baht in net losses in the first nine months of last year.

Having worked for Emirates, which THAI has accused for taking a ways a lot of business from it especially on European routes, Mr Banston is seen of knowing the ploys employed by the Gulf carrier and used them for the benefits to Thai airline.

"Give the two expats a try to see if they can make a worthwhile contribution to the course of salvaging the airline,'' a senior THAI executive said on the condition of anonymity.

THAI shares closed yesterday on the Stock Exchange of Thailand at 8.70 baht, down 15 satang, in trade worth 17.7 million baht.

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