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)

Thailand improves in corruption survey

Thailand has improved by nine places to 101st out of 180 countries in the 2022 Corruption Perceptions Index from 110th in 2021, Transparency International (TI) said on Tuesday.

31 Jan 2023

Anutin posters cause a stir

The Pheu Thai Party on Tuesday joined a call for the Election Commission (EC) to look into posters erected at many state-run hospitals depicting Public Health Minister Anutin Charnvirakul.

31 Jan 2023

Court lets 'Pinky' remove electronic tag

Actress Savika “Pinky” Chaiyadej on Tuesday won approval from the Criminal Court to remove an electronic monitoring (EM) device she was required to wear after her release from jail on Nov 30 last year.

31 Jan 2023