Thai Airways new business plan

Post by **wallabyjack** » July 25, 2014, 9:24 am

THAI maps up 3-yr rehab plan
SUCHAT SRITAMA
THE NATION July 25, 2014 1:00 am
Thai Airways International is prepared to move its Thai Smile Air subsidiary to Don Mueang International Airport and to offer early retirement to 900 staff members as part of a three-year revival plan. The national carrier expects to return to profit by 2017.
Relocating Thai Smile's operation from Suvarnabhumi Airport to Don Mueang is expected to result in more passengers for the subsidiary carrier. THAI will talk with Nok Air about giving some routes to Thai Smile.

The move is also aimed at dealing with the competition from other low-cost carriers, especially AirAsia, which have been stealing a lot of passengers from THAI and Thai Smile.

However, Patee Sarasin, chief executive officer of Nok Air, said relocating Thai Smile Air would damage THAI as it could affect the parent airline's connecting flights. He added that it would be difficult to get approval for this plan.

Another cost-cutting measure planned by the national carrier would offer early retirement to 900 staff members, especially those who are in inactive positions or are undergoing medical treatment.

The airline held a special meeting yesterday to seek additional cost-cutting measures as well as business-recovery plans. It will submit the rehabilitation plan to the Finance Ministry on Monday to be scrutinised by the military's ruling National Council for Peace and Order afterwards.

"By the first quarter of 2015, the airline expects to reduce operating costs by Bt4 billion. In the meantime, the company hopes to increase revenue by between Bt3.5 billion and Bt4 billion," said Air Chief Marshal Siwakiat Jayema, acting president of THAI.

The airline reported a loss of Bt12 billion in 2013 and continued in the red in the first quarter of this year.He added that the airline was considering reducing flight frequencies on routes with low load factors to save money.

Moreover, the company hopes to boost revenue with a new "Beyond Thailand" campaign, which offers special deals for visitors to Thailand flying on to Malaysia, Indonesia, Singapore or Australia.

The airline will also enhance its on-board services, starting with first class, as part of its aim to become a "super premium" carrier. It will also refurbish its lounge at Suvarnabhumi Airport.

Furthermore, the airline has established a "war room" unit to monitor daily situations and customers' movements. THAI passengers will also join 10-per-cent discounts when purchasing products at individual Power Duty Free shops.

According to Siwakiat, THAI's board of directors also approved establishing a special team to oversee the rehabilitation plan and business strategies.

Five executives were transferred to run the plan. They are Teerapol Chotichanapibal, executive vice president commercial; Pandit Chanapai, executive vice president for the business unit; Chokchai Panyayong, senior executive vice president for corporate strategy and sustainable development; Danuj Bunnag, senior vice president for corporate ancillary revenue; and Niruj Maneepan, senior vice president for human resources and compliance.

Siwakiat said the airline hoped to see better results by the third quarter of next year. However, results would remain in the red this year and next.

Post by **pomps** » July 25, 2014, 10:37 am

I think Patee Sarasin has summed it up as I would see it,more negatives than positives for the move

Post by **Jing Jing** » July 25, 2014, 10:56 am

A deteriorating bottom line has prompted investors to dump the airline's shares. Thai Airways' market value has dropped by a third in the past year to below $1 billion.

Passenger traffic plunged 25 percent on year in May when the military seized power. Thai Airways, which has extensive routes to Europe and the rest of Asia, is due to report its earnings for the April-June quarter next month.

For 2014, the 54-year old airline is expected to post a net loss of 8 billion baht compared with a 12 billion baht loss last year, according to Thomson Reuters

http://www.reuters.com/article/2014/07/ ... T120140720

Post by **maaka** » July 25, 2014, 10:59 am

maybe they should do a big promotional drive down south over the border, now people there will be looking for safer flights..

Post by **pomps** » July 25, 2014, 11:13 am

Just some background info re thai

click on links to view

http://thai.listedcompany.com/dividend_policy.html

Post by **joepai** » July 25, 2014, 3:15 pm

A shame really as they can very very good. Flew back from Paris this morning on the 380 and it was a prefect flight, service was excellent, food & drink good and naturally the plane superb. However then caught the Smile flight here and it was at best 40% full - but again for a domestic flight was more than adequate and certainly as good as the so called "Boutique" airline (who I feel are losing their way).

Post by **macca46** » July 25, 2014, 7:30 pm

I have flown from AUS to Bkk. eight times with Thai twice with BA every thing was good had a frequent flyer card not a cheap option but!! my last two flights here I flew from Melbourne to Bkk with Jetstar a much cheaper option had to stay the night in Bkk this was ok but the last time six months ago (I have posted this before) we had a 7.05am flight Thai Smile to here did not read the departure board was never informed that this flight was no longer operating we sat the airport for six hours needles to say no more Thai or smile we will now use Bkk Airways or Nok goodbye Thai and Thai smile you have lost me I now understand why you are loosing so much money.

Post by **Earnest** » July 26, 2014, 2:44 am

I don't want Thai Smile to move to DM, that would screw everything up for me.

Post by **Aardvark** » July 26, 2014, 6:12 am

Me too

Post by **rick** » July 26, 2014, 5:28 pm

Likewise. Who wants to trek across Bangkok with all your luggage to and from Don Muang when taking international flights. Guess it will have to be Bangkok airways, or the bus again.

Post by **Jing Jing** » July 26, 2014, 8:39 pm

Apparently the international flight schedulers don't talk to the domestic schedulars. Try to leave Udon early morining to catch a mid- morning international or an early morning flight to Udon. I think they have totally ignored the business traveler and will continue to lose passengers.

Post by **wazza** » July 26, 2014, 11:56 pm

U need to link your international legs up on the Thai Computer , if booking the domestic leg, it means a phone call as on line bookings, doesn't have the ability.

I predicted this ages ago, as Thai Smile is just a budget airline at best.

Int connections from Udon to Swampy, now under a cloud for many, as well as me. BKK Airways, join their FF club and get the extra luggage allowance...

The writing is on the wall for Thai a few years, they got fined in Australia for $ millions for cartel / cargo activity and asked the Australian Government for permission to pay it off as a drip feed .

The Board boasted they can buy a better quality French Wine, they will save significant costs than using other wines. Read in to that, they have found a budget bulk buy .

I just flew Business Class BKK / LAX with Thai, older livery and older staff , mind you they are still in front of most American Based Airlines I have flown on in business class. American Airlines providing Bose Noise Reducing head sets is a bonus !

When they closed down the Udon office, cancelled their morning flights earlier this year

No Gold lounge was ever provided in Udon, Meals in the International Business Gold Lounge BKK, are now just snacks,

As a frequent business traveller, you noticed all these things.

Its not the 500 points, that I will miss if it goes ahead, its the connections that I can make at Swampy. Having to stay overnight in BKK, as internal connections are unable to be made, means my flights and travel costs are increased significantly, as its an extra day on my Consulting rates.

Post by **TGSA01** » July 27, 2014, 9:33 am

I am a very frequent flier (not on Thai though). And while that does not make me an airline specialist, I think MORE is needed to bring Thai Airways back to profitability. Focusing initially on first class passengers only is interesting, considering that many airlines are or have abolished first class (who flies first class these days anyway, public servants or free upgrades?), and the current load factor is just over 50%... Moving Thai Smiles to the old airport? Yip, this will make many passengers with international connections really happy to also enjoy a one hour shuttle to Suvarnabhumi! My suggestions? Better domestic connections, better service on board (in eco too!), 20kg luggage allowance is ridiculous, better lounges, and more flexible pricing (an August departure to London on Thai Airways is 47,910 but only 37,445 on Lufthansa (yes, I know, not a direct flight...) or 41,280 on British Airways. Now, WHICH airline would I take, I wonder? Again, remember: The load factor is around 58% right now...

Post by **Jing Jing** » July 28, 2014, 10:39 am

Here is another nail in the ThaiAirways coffin ...

NokScoot (joint venture between Thai budget carrier Nok Air and Singapore's low-cost carrier Scoot)...to speed up long-haul plan ...it would inaugurate flights from Bangkok's Don Mueang airport to Japan on Sept 1 ...NokScoot looks set to bring forward its plan to launch long-haul, low-cost flights from Bangkok. ..Scoot operates a daily Singapore–Bangkok flight using wide-body aircraft. Its base shift will consolidate its own operation with its Thai partner at Don Mueang, Nok Air's hub.

:http://bangkokpost.com/most-recent/4227 ... -haul-plan.

Post by **wazza** » July 28, 2014, 11:43 am

Never heard of Scoot before. So presuming they use the smaller terminal at Changi.

BKK - SIN is 2 .5 hrs max . So not really a massive flight . But number of bags and allowances plus cost of a meal etc will push the advertised ticket price up.

Post by **pomps** » July 28, 2014, 12:14 pm

Will there be a scootinsilence on all nokscoots

http://www.travelandescape.ca/2013/09/s ... oney-grab/

Scoot air

Have not been to Don Muang in ages,still a flood area

Thaismile have been advertising a lot on local tv,desperation

Post by **maaka** » July 28, 2014, 6:54 pm

booked in October Auck to BKK on Thai, now are you telling me that after I spend the whole night, shuffling like a zombie around Swampy terminal until morning to catch an early flight to Udon, there wont be a flight???...or just not by Thai air..

Post by **Jing Jing** » July 28, 2014, 7:24 pm

I think you have to schlep over to DM if you want an early morning flight to Udon.

Post by **BobHelm** » July 28, 2014, 7:44 pm

Bangkok Airways Maaka...But you want to book soon as they do get full pretty quickly now..

Post by **wazza** » July 28, 2014, 8:02 pm

Has the move to DM been confirmed yet ? Its in their plan but when ???