Thai Airways International foresees revenue falling 18.18 per cent this year, from Bt220 billion to Bt180 billion, due to the economic turmoil.
Board chairman Surachai Tansitpong said the airline planned to reduce annual operating costs 5-10 per cent. They can be cut 3 per cent immediately, saving about Bt6 billion alone.
The company waived annual commission payments and froze salary adjustments in last year’s budget.
Facing disaster (read here), the national carrier (majority owned by the thai state) has no alternative. The party is over. All airlines in the world are preparing themselves for the worst. Even very well managed companies. And that’s one of the biggest challenge for Thai Airways : the company is not managed... I mean : normally and properly.
With an increasing market every year, it was easy to hide the truth. Now that the recession (depression ?) is here, the dirty laundry is showing up…
Overstaffed and full of friends and buddies of generals, colonels… Thai Airways has to evolve to survive.
THAI will now also implement a hiring freeze until performance recovers.
“The company expects this year’s financial results to return to positive territory,” said Surachai.
THAI is expected to post a net loss of more than Bt10 billion for 2008, due to the global economic crisis in general and the shutdown of Bangkok’s airports in particular. (Nation)
A “hiring freeze” ? ! Of course the company has to freeze hirings ! What a bunch of clowns. The real plan would be : how many employees should be fired.
As for the forecast made by the chairman… we should remain cautious… The worst is still ahead. At that point, it’s a fantasy to believe that millions of tourists, with their pockets full of money, will pour in Thailand by planes, and that businesses will use air freight to ship goods they don’t produce anymore to customers who don’t buy anymore. 😉
It wasn’t long… Labour union appears exactly like the military : selfish, incompetent and totally disconnected from reality. Honestly, that’s a lot for a single company…
The Thai Airways International labour union is threatening protest action after the board decided against awarding staff any pay increases. […] The union threatened to resort to “every means” necessary to pressure management to grant salary hikes, saying staff are simply protecting their rights. (Bangkok Post)
Those guys should be fired, on the spot. US style. The economy is crashing. But those profiteers protest because… they don’t receive a pay rise ? !