Former THAI Airways International (THAI) executives have petitioned Transport Minister Prajin Juntong, asking him to find out why the national flag carrier is wracked by heavy losses.
Yothin Pamon-Montri, a former executive and shareholder of THAI, said some shareholders are worried about the company's losses, which over two consecutive years amount to 29.6 billion baht.
He was speaking after submitting the petition to ACM Prajin through the minister's representative yesterday. "The former executives and staff of THAI have expressed concerns about the condition of the company," said Mr Yothin, adding the group has gathered information about the losses and will seek answers from the company's board at a shareholders' meeting tomorrow.
According to Mr Yothin, a number of former THAI executives in the ginger group have assessed the performance of the board and the document containing that information will be sent to THAI board chairman Areepong Bhoocha-oom through the company's president Charamporn Jotikasthira.
The information will also be delivered to other parties as well, including Prime Minister Prayut Chan-o-cha, Finance Minister Sommai Phasee and the Stock Exchange of Thailand (SET) president.
Mr Yothin said one major problem is with NokScoot airline, a joint venture of Thailand's Nok Air and Singapore-based Scoot, which is allowed to fly some routes where THAI operates.
This came despite the fact that THAI holds a 39% stake in Nok Air. Scoot is wholly owned by Singapore Airlines.
The new airline competes with its parent firm THAI, which Mr Yothin said raises questions over a conflict of interest. He also asked why THAI did not oppose NokScoot's operation in the first place.
Mr Yothin said Singapore Airlines, which owns 49% of NokScoot, benefits from the venture as it can use its decommissioned aircraft to fly NokScoot. In contrast, THAI received no benefit from it.
Another THAI ex-executive and shareholder, Suthep Suebsantiwong, said he wants the board to disclose information concerning the hiring of consultancy firm LEK since 2009.
LEK, he said, had recommended that THAI launch cargo flights with the use of two modified Boeing 747-400F aircraft. The project, according to the consultant, could bring in big profits and break even within four years.
However, the project, which ran from April 2012 to December 2013, hit 572 million baht in losses and was finally shelved.
Compensation for the losses should be demanded from LEK, he said.
THAI will also be asked to disclose information on hiring consultancy firm Bain & Company, which helped work out the carrier's reform plan, under the name of Shrink to Growth, he said.
The contract was signed on Dec 23 last year.
Details on how the company was selected should be revealed as an executive of Bain was found to have also worked for LEK and Temasek Holdings.
As Temasek owns Singapore Airlines, which also has a stake in NokScoot, this could be another area of conflict of interest.
It could also open up a loophole where classified information could be leaked to a competitor airline.
According to Mr Suthep, Bain recommended restructuring the organisation, downsizing staff, decommissioning and reselling old aircraft, changing flight routes, reducing costs, and selling shares including those of Nok Air, hotels and Bangkok Aviation Fuel Services Plc.
The plan was drawn up to reduce expenses, but no suggestion was given on how to raise revenue, particularly earnings through ticket sales, which is key to the aviation business, he said.
Bain, he said, also advised THAI to cut back on flight routes, including those from Bangkok to Madrid, Moscow and Johannesburg.
The routes to Rome, Milan, Brisbane, Colombo, Hyderabad, Los Angeles, and Denpasar are also due to be suspended, and it is believed the beneficiary of the move could be Singapore Airlines, he said.
A THAI source said the carrier has hired consultants to conduct studies in various fields.
It found the work of the firms, particularly Bain & Company, has been kept secret.
The firm's reform plan was proposed at a closed meeting with no information about it being publicised, the source added.