THAI makes progress in leadership search

by DOMINIC LALK  

June 1st 2017

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Thai Airways International’s (THAI’s) acting president and executive vice president of its business aviation unit, Khun Usanee Sangsingkeo, will not be confirmed as permanent president at the flag carrier, that much is certain. Read More »

Khun Usanee is not doing a bad job at the airline. Rather, aged 59, she will be hitting Thailand’s official retirement age next year, which bars her from continuing to steer THAI through its challenging operational landscape as well as complicated internal issues.

There has long been talk of lifting the cap on the official retirement age of civil servants in Thailand, from 60 to 65, or to 70, but until now the Department of Labour has not signed off on changes to the status quo.

Khun Usanee was appointed acting president of THAI in February. Her previous job was chief of the airline’s business aviation unit. She also has been managing director of THAI’s ground services department and a director of the in-flight equipment planning and controlling department, the Suvarnabhumi Airport Hotel Co. Ltd., Wingspan Services Co. Ltd and Phuket Air Catering Co. Ltd.

The search for a new president capable of completing the state-controlled carrier’s transformation is underway. Orient Aviation understands that four candidates, internal and external, have passed a first round of consideration. An official announcement will be made later this year.

THAI continues to experience financial duress, but it restructuring measures are finally having some effect with the 57-year-old carrier forecasting a return to the black in 2018.

On May 21, the carrier’s board made a landmark decision when it decided not to acquire additional shares in Nok Air, a low-cost subsidiary led by CEO, Patee Sarasin. THAI owns 39.2% of the LCC. The THAI board decided “it was not the right time” for the cash strapped carrier to increase its investment in Nok Air, even if this meant its shareholding in the budget airline may be diluted.

Nok has reported several consecutive quarters of losses. For the full 2016 year, the LCC lost $95.7 million. In April, THAI said it was to run THAI, Thai Smile and Nok Air with a joint management and a single board of directors. Under the cooperation framework, THAI would be the major international carrier; THAI Smile the domestic and Indo-China network carrier and Nok Air the budget partner.

THAI’s executive vice-president for corporate strategy and sustainable development, Flt. Lt. Montree Jumrieng, said co-operation between the carriers would include routes, marketing, ground services, allocation of parking bays and maintenance services. “In the future, the three airlines will form an aviation network,” said Flt. Lt. Montree, who added the carriers would feed transit traffic onto each other’s airlines.