Thai Airways : “the situation seems to be getting worse”

After “biggest quaterly losses in 10 years and plan to reduce workforce” (august) and after “The situation has deteriorated from bad to worse” (october 10), here is the latest episode of the Thai Airways Drama :”The situation seems to be getting worse”.

Thai Airways International must drastically slash costs more in order to weather the slump in travel demand caused by the worsening global financial crunch and the political standoff in Thailand.

”The cost-saving measures we have adopted are not enough as the situation seems to be getting worse. More drastic action is needed,” THAI president Apinan Sumanaseni said yesterday.

Facing reduction are intercontinental services where it must fill at least 70% of its seats to break even, and several regional routes to China, Korea and Japan on which traffic has fallen sharply.

Acquisitions of aircraft that have not yet been ordered will be reviewed,
though those already committed, including six Airbus A380 superjumbos, eight A330-300 wide-body jets and 20 A320 regional jetliners, will not be subject to change.

But Mr Apinan ruled out retrenching staff due to complicated state-enterprise protection rules, but 400 personnel recently accepted voluntary early retirement costing THAI 700 million baht. There are 26,000 people on payroll. (Bangkok Post)

Apinan has an impossible task : to save a “national carrier” during a global and local crisis, without touching one hair of the… employees (who are for a lot of them relatives, friends, cousins, maids of generals, colonels, politicians and other lunatics officials).

Good luck. And check the parachutes. ๐Ÿ˜‰

-SIngapore Airlines has 99 airplanes and 14 000 employees
-Thai Airways has 88 airplanes and 26 000 employees…

Just another regular and perfectly normal day in the Land of Smiles… ๐Ÿ˜‰

2 Responses to “Thai Airways : “the situation seems to be getting worse””


  1. 1 chinesethai 7 November 2008 at 2:24 am

    What would Thai Airways be like if it were a girl?

    – MPs and families board numerous flights on THAI free of charge.
    – Profitable routes were taken away and allocated to another budget airline partly operated by ShinCorp.
    – Employees freely take high quality stainless spoons and forks, napkins, in-flight foods, play cards, perfume, stationery, and all the stuff they can take away, back home …. everyday, all year round.

  2. 2 Bedwyr 7 November 2008 at 3:50 am

    Hmmm.

    11% fewer planes but 86% more employees.

    So…

    The government said earlier this year that ‘Thai business is not yet ready to compete with foreigners’.

    Does this story give any insights as to why that is?

    Doesit suggest, for example, that Thai business (at least *this* Thai business), is being run by incompetent managers? Does it mean that the Thai government pays about half the wages of other airlines? or does it mean that THAI is yet another trough for pooyays and their mates to get their snouts in while the poor people in Thailand stay poor and troughless?

    Either way, it doesn’t speak well for Thai business. Or Thais in general for that matter, but perhaps I am being harsh.

    Bedwyr

    ps. Thaicrisis, are you moderating all posts these days?


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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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