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 (113)

Duterte gets tough on China, leaning back to old ally US

After years of shifting the Philippines closer to China, President Rodrigo Duterte appears to be leaning back toward the US.

17:13

Wild elephant electrocuted at caravan park

NAKHON RATCHASIMA: A wild bull elephant was found dead, believed electrocuted by substandard electrical wiring, at a caravan park near Khao Yai National Park on Wednesday morning.

17:02

Belarus leader Lukashenko sworn in at secret ceremony: agency

MINSK: Belarusian President Alexander Lukashenko has been sworn in for a sixth term at a secret ceremony held with no prior announcement, the Belta state news agency reported Wednesday.

16:45