THAI delays affiliate strategy

THAI delays affiliate strategy

Several parties 'didn't understand proposal'

The board of Thai Airways International (THAI) has delayed forming the so-called THAI Group as a strategic overhaul of the national carrier and its two budget airlines, Nok Air and THAI Smile.

THAI board chairman Areepong Bhoocha-Oom said the proposal to set up the THAI Group had not been raised at the meeting on Wednesday night because several parties did not have a full understanding of it.

THAI acting president, Usanee Sangsingkeo, has been asked to prepare a clear explanation and provide details of the THAI Group plan before the board sits down to consider it, he said.

However, Mr Areepong said the THAI Group was a concept that will help the national flag carrier and its two affiliated airlines to compete efficiently in the aviation industry.

Under the concept, the three airlines will work more closely together and more effectively, he said, noting THAI has been discussing increased cooperation with its affiliated airlines.

THAI and THAI Smile have adjusted their routes to sync with the operation base of THAI Smile with its relocation back to Suvarnabhumi airport from Don Mueang airport to accommodate passengers connecting flights.

"We and our subsidiaries have to consolidate. It is a strategy to increase efficiency. And this year, for Nok Air and THAI Smile, the board and the management will make efforts to turn them around," he said.

Mr Areepong declined to discuss reports about the possible sacking of Nok Air chief executive Patee Sarasin while saying the plan by the national flag carrier to increase its shares in Nok Air is not yet finalised.

A source at THAI said Thursday that the board had approved a plan to increase its shareholding stake in Nok Air by increasing Nok Air's capital.

However, Nok Air, which is a listed company, has to raise the issue with its shareholders before THAI can proceed.

Nok Air is currently 39%-owned by THAI.

The source said there have been talks about possibly removing Mr Patee from the post after THAI takes a bigger stake as part of THAI's new aviation strategy.

He said Nok Air is expected to undergo a major improvement to keep up with the strategy.

Mr Areepong said four out of eight candidates for the new THAI president's post have passed the first round of the examination.

They are Danuj Bunnag, adviser to the THAI president; Visit Tantisunthorn, ex-secretary-general of the Government Pension Fund; Teerawit Jaruwat, former president of TOT Plc; and Yongsit Rojsrikul, the former governor of the Mass Rapid Transit Authority.

More than 100 THAI staff led by labour union president Damrong Waiyakanee cross their arms at an anti-corruption gathering at Suvarnabhumi airport. Somchai Poomlard

Meanwhile, core members of the THAI labour union gathered Thursday outside the operations centre at Suvarnabhumi airport in a symbolic protest against certain board members.

The staff wanted them to resign to show responsibility over the airline's "flawed management and irregularities in the aircraft procurement scheme" which some blame for recent losses.

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