Airline News
MP: “THAI chief has six months before facing the axe”
November 20th 2015
The bad news at Thai Airways International (THAI) continue. Read More » Thai prime minister Prayut Chan-o-cha is "dissatisfied" with the first-year performance of THAI chief Charamporn Jotikasthira, as the national carrier is bracing itself for record losses this year, senior government sources have told the Bangkok Post, adding Charamporn would face the axe within six months if he failed to stem the carrier’s losses.
"Currently the prime minister is dissatisfied with Charamporn," said the policy-making source, who declined to be identified. "He may survive this year's evaluation and be given another six months to prove himself. If he continues to miss targets, he won't survive the next evaluation round."
THAI last week posted 9.89 billion baht ($275.2 million) in losses for the third quarter ended September 30, 4.23 billion of which stemmed from operations and 4.63 billion from exchange rate fluctuations and impairments of assets and aircraft. This translates into 18.1 billion baht ($504 million) in losses for the first nine months combined, up 97.2% year-on-year, increasing the likelihood the flag carrier's losses this year could equal or exceed the all-time high of 21.3 billion reported in 2008.
The massive losses have forced THAI’s top eight executives, including divisional vice-presidents and Charamporn himself, to accept salary cuts of up to 10% in months the carrier suffers losses.
Meanwhile, the Bangkok Post has reported former THAI president, Piyasvasti Amranand, denied accusations the carrier’s losses in 2015 were partly caused by fuel-hedging decisions he had made during his October 2009-June 2012 term.
