The future of Sorajak Kasemsuvan as president of Thai Airways International (THAI) hangs in the balance after his performance was deemed disappointing by the airline's board.
THAI board vice-chairman Areepong Bhoocha-oom conceded Wednesday that the airline's turnover in the first half of this year was lower than expected despite a rise in tourist numbers to the country.
According to Mr Areepong, the number of inbound tourists increased by 20% in the first six months of this year compared with the same period last year.
"The board is quite disappointed [with Mr Sorajak's performance]," Mr Areepong said.
It was all so promising last Oct 10 when new Thai Airways International president Sorajak Kasemsuvan posed against this backdrop of THAI's A380 superjumbo, but his plan to blend Thai cuisine, Otop silk fabrics and courteous service just hasn't worked out the way he predicted. (File photo by Thiti Wannamontha)
The board will examine the THAI president's job performance against the goals that he was set. Mr Sorajak took up the post about 10 months ago.
Mr Areepong, however, expected that the national flag carrier's turnover will recover in the second half due to the launch of new routes, aircraft replacement, as well as a newly established panel which is monitoring THAI expenditure and costs.
Intensifying competition from Gulf carriers and low-cost flights in Asia have hit THAI's turnover, he said.
THAI suffered a net loss of 8.4 billion baht in the second quarter. This followed a net profit of 8.2 billion baht in the first quarter, combining for a net loss of 156 million baht in the first half of this year.
Its total revenue reached 101.7 billion baht in the first six months.
THAI board chairman Ampon Kittiampon rebuffed reports that he is trying to remove Mr Sorajak as the national carrier's president.
Mr Ampon said Mr Sorajak's work assessment will be transparent and any decision will not rest with him alone.
Meanwhile, Transport Minister Chadchat Sittipunt denied political moves were afoot to unseat Mr Sorajak.
"There is no politics involved," Mr Chadchat said. "Nobody has given me any orders [to remove Mr Sorajak]. The decision will be made by THAI's board."
Mr Chadchat said the board has yet to report to him about Mr Sorajak's performance.
Deputy Transport Minister Prin Suvanadat said if the board decides to dismiss Mr Sorajak, it must have good reasons. "I cannot say whether Mr Sorajak's performance is good or bad because I have not seen the company's reports," Gen Prin said.
Mr Sorajak has always responded well to the government's policies, he added.
However, the assessment of the president's work would be clarified by a panel which is handling the issue.
Meanwhile, Mr Sorajak said he was not aware of the reports of his possible dismissal.
He said, however, that he expected the company's operation to turn around and make a profit of 4 billion baht, against a target of 6 billion baht, at the end of the year.
He attributed the loss during the first half of this year to the purchase of new aircraft, depreciation costs for old aircraft, currency exchange movements and poor cargo service performance.
Brushing aside speculation about the board's assessment of his performance, Mr Sorajak said he would perform his duty to the best of his abilities.
A Transport Ministry source said a compromise could be reached if Mr Sorajak really has to be removed as president.
The source said Mr Sorajak's performance has made the THAI board unhappy because he lacks adequate leadership skills.
Many board members had complained that Mr Sorajak was unable to propose clear plans to move the organisation forward, the source added.