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THAI given new deadline of one month to produce restructuring plan
October 18th 2019
Revenue growth and cost reductions will see changes in IT and routes. Read More »
The Thai Airways International (THAI) leadership team was disappointed its aircraft acquisition was rejected last month and that it had only six months to draw up a new one. That deadline now seems generous after the country’s deputy transport minister, Thaworn Senneam, issued a new dictum that the airline come up with an entire new business strategy in one month.
THAI has been restructuring, but the details of its strategy have been little discussed.
Even if the government is justified in demanding a new business plan, the new deadline appears to again place THAI at the centre of government in-fighting. The transport ministry had wanted to replace the chairmen of THAI and Airports and Thailand but, according to local reports, the prime minister intervened. The transport ministry appears to be re-asserting itself.
Local reports said THAI’s top priority was to increase revenue. It is an outcome that is almost guaranteed by THAI’s expanding MRO arm, network growth, merchandising, better revenue per flight and its new fleet configured in a modern layout. Information Technology is a major target for improvement as well as passenger satisfaction.
Thaworn wants THAI to expedite the sale of 19 unspecified aircraft and to be provided with a monthly update on the airline’s fleet purchase development.
THAI president, Sumeth Damrongchaitham, said initial targets would be a reduction in overtime and a 10% cut in procurement. On the revenue front, THAI vice president sales, Nond Kalinta, said that after this year’s European growth, the airline’s focus would be on East Asia, particularly Japan and India. THAI is encouraged by the rising baht and the expanding Thai economy.
