Thai Airways at crisis point, president says

Thai Airways at crisis point, president says

A Thai Airways International plane is seen at Suvarnabhumi airport’s maintenance centre in Samut Prakan province. The airline's president on Tuesday voiced serious concern about the loss-ridden national airline's future and cited this aircraft waiting for repairs as an example of why it was losing so much money. (Bangkok Post file photo)
A Thai Airways International plane is seen at Suvarnabhumi airport’s maintenance centre in Samut Prakan province. The airline's president on Tuesday voiced serious concern about the loss-ridden national airline's future and cited this aircraft waiting for repairs as an example of why it was losing so much money. (Bangkok Post file photo)

Thai Airways International (THAI) president Sumeth Damrongchaitham said on Tuesday that staff must cooperate with the airline's rehabilitation efforts because it is in a crisis and faces possible closure.

He sent his message to THAI executives during a training session at the airline's headquarters.

"Today I want staff to be united to overcome the obstacles. Otherwise, the national airline must close down. There is still time for a solution, but there is not much time," Mr Sumeth said.

He said that THAI had lost its market leadership on several routes to competitors, citing northern routes that had generated a third of THAI's revenue but were now dominated by low-cost airlines.

"The competition is very fierce this year," Mr Sumeth said. "THAI is really in a crisis. Next year it must do its best. If staff are still unaware and do nothing, they will not have enough time to fight back. Today very little time remains. Today there is no comfort zone. Everyone will die if the vessel sinks," .

THAI would cut costs by reducing the salaries of managerial staff and following a zero inventory policy at its catering department, he said.

"There will be no other rewards for the staff, because the top prize is the survival of the company," Mr Sumeth said.

In the first half of this year, THAI posted a loss of 6.44 billion baht, raising its accumulated loss to 280 billion baht. It employs more than 20,000 people.


Do you like the content of this article?
COMMENT (110)

Duo team up for EV sharing scheme

EV Primus Co, a distributor of multiple brands of electric vehicles (EVs), has diversified its EV business by teaming up with Haupcar Co to offer an EV sharing service through a digital platform, aiming to serve the travel lifestyles of urban dwellers.

09:04

Senator says officers are taking bribes from traders

Some traders in Thailand are paying bribes to the authorities so they can illegally sell e-cigarettes in the country, Somchai Sawaengkan, the chairman of the Senate Committee on Human Rights, Freedom and Consumer Protection, revealed.

08:24

UTN appoints Prayut as its chief strategist

Prime Minister Prayut Chan-o-cha has been named chief strategist of the United Thai Nation Party (UTN), according to party leader Pirapan Salirathavibhaga.

07:02