News
New THAI president to revive turnaround plan
September 7th 2018
Sumeth Damrongchaitham formally took up the position of Thai Airways International (THAI) president on Monday, replacing acting president, Usanee Sangsingkeo. Read More »
An aviation novice, 53-year-old Sumeth previously served as the managing director of asset management firm, Dhanarak Asset Development, which is 99.99% owned by Thailand’s Ministry of Finance. It invests and manages state holdings, including government complexes in Bangkok. For several years before his government job, he was CEO of GMM Grammy, the kingdom’s largest entertainment company. GMM was founded by Sumeth’s uncle, Paiboon Damrongchaitham, in 1983 and the family continues to hold close to a 50% shareholding in the listed company.
Sumeth’s new job will be challenging and his tasks are clear: return THAI to profit, trim its bloated workforce, simplify its fleet and improve the airline’s in-flight product. THAI has been in the red for most of the last decade, including a net loss in 2017.
In the second quarter of the current financial year, ended June 30, the government-controlled airline reported a net loss of THB3.1 billion (US$95 million), an improvement on the THB5.2 billion net loss posted in the corresponding period in 2017. The carrier’s yield was down 0.9%, to THB2.10 (US$6.6 cents).
Addressing THAI’s dire financial state, airline chairman, Ekniti Nitithanprapas, this week told the Bangkok Post the airline would present a revised turnaround plan to the State Enterprises Policy Commission on September 12. It would “help THAI exit the business rehabilitation process”, said Ekniti, and include a stronger focus on digital transformation, better use of human resources and an upgraded product.
He added the flag carrier was willing to inject additional funds into Nok Air, a low-cost carrier in which THAI holds a 21.6% equity, if Nok presented a “credible rehabilitation plan and a clear strategy”.
Former Nok Air CEO, Piya Yodmani, has been succeeded by acting CEO, Pravej Ongartsittigul. The Nok board accepted Piya’s resignation and thanked him for his “dedication over the past 11 months to bring the carrier's business turnaround plan […] to fruition”.
At THAI, former acting president, Usanee Sangsingkeo, will stay on as a senior advisor to the new president.
