News Forum - More cuts at Thai Airways as flagship carrier continues rehab process

[Thaiger]

The chairman of the Thai Airways rehabilitation plan says the airline is making good progress with cost-cutting exercises. Piyasvasti Amranand says Thailand’s national carrier has managed to recover 44.8 billion baht by cutting its workforce and ending aircraft lease agreements. “Thai Airways’ operational performance has progressed satisfactorily in many aspects, including cost reduction and organisational restructuring.” According to a TTR Weekly report, the airline implemented 400 priority projects to reduce operational expenses, achieving 77% of its cost-cutting target. The workforce has been slashed from 29,500 employees in 2021, costing 2,600 million baht a month, to 14,900 now, at a monthly […]

The story More cuts at Thai Airways as flagship carrier continues rehab process as seen on Thaiger News.

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[mickkotlarski]

They should have started by cutting some of the CEO's earnings. Flight captains are driving taxis and selling egg noodles. Where were they when Taksin's Airbus purchase fiasco put the airline into arrears?

[HolyCowCm]

Yes but it doesn't really say how many on the tippy tippy top have had to give up their piece of the sponge cake? these are the ones who really should not have any attachment to it as wealthy already.

[LoongFred]

2 minutes ago, mickkotlarski said:

They should have started by cutting some of the CEO's earnings. Flight captains are driving taxis and selling egg noodles. Where were they when Taksin's Airbus purchase fiasco put the airline into arrears?

Also they need to curtail free hiso and top government travel. There is no need to bring everyone along when not paying. Getting free excess luggage is also an excess. When a company is fat with cash they can be generous, but not when they're in bankruptcy 

 

[KaptainRob]

Both articles used incorrect grammar although TTRW did correct itself with:-

"THAI adopted 400 priority projects that cut operational expenses by THB 44,800 million, representing 77% of the rehab’s target"

Using words like 'recover' or 'recouped' could lead TG accountants' to show income on the books. 

[Artemis080]

I would not fly in their planes. When the rest of the airline industry mothballed in the desert to make sure they could bring back the fleets safely, Thai just kept planes on the tarmac here.

Cash strapped and bankrupt with an ageing fleet and corrupt management. No thanks. I'll fly SQ.

[AussieBob]

This is what will actually happen at Thai Airways:

https://www.slideshare.net/zzhelev/the-management-rowing-race-28075400

What needs to happen is for the company to be declared bankrupt and all staff sacked and all assets sold off, which would include the name. Then and only then will they can new owners undertake the massive and complete restructure needed.  I reckon Air Asia Thailand could be an ideal new owner - then they can have two airlines - the budget low cost (like Scoot) and the premium (like Singapore Airlines). 

 

[Jason]

I think the article says it all with one line "Thai Airways is in rehab" :) Interesting that when things go bad, the first thing CEOs do is lay off workers. It's a pity that a national carrier is run so poorly.

[Cathat]

The whole airline is a toxic asset.

If it was private sector they would have been declared bankrupt at least a decade ago.

No amount of cost saving or restructuring can save this company.

It's likely the demand for regular long haul flying will be very much reduced for the next decade minimum.

Best shut the whole thing down now as the private sector can easily cover regional and domestic services were the majority of demand is likely to be for the foreseeable future.

[Soidog]

Anyone can cut costs. The trick is doing it while maintaining or growing revenue. Over the years I’ve been involved with a number of company acquisitions and the sellers always embark on projects to show potential buyers how much fat can be trimmed and hence make it lucrative. Usually it’s the same managers who have run the company in to the ground, or a bunch of overpaid consultants that think taking costs out is the same as increasing profits. I’ve no doubt 50%-75% of these so called “savings” are simply doing less, rather than doing the same with cost reductions. 

[HiuMak]

One thing Thai airlines should cut first is their corruption

[gummy]

10 minutes ago, HiuMak said:

One thing Thai airlines should cut first is their corruption

Won't happen whilst it is purely a plaything for the main ringleader

[gummy]

On 11/4/2021 at 11:55 AM, Jason said:

I think the article says it all with one line "Thai Airways is in rehab" :) Interesting that when things go bad, the first thing CEOs do is lay off workers. It's a pity that a national carrier is run so poorly.

Well even their timetables are wrong. You would think that TG could at least get airport of departure correct. According to this a TG  flight took off from Don Mueang early this morning and I thought they only flew from Swampy.

https://www.flightradar24.com/THA924/29c85f37

[poohy]

10 minutes ago, gummy said:

Well even their timetables are wrong. You would think that TG could at least get airport of departure correct. According to this a TG  flight took off from Don Mueang early this morning and I thought they only flew from Swampy.

https://www.flightradar24.com/THA924/29c85f37

You little tinker ! You! I suspect its a sort of charter flight thingy sort off

Now saying that

I am flying to Dudley after Christmas i had requested a private pick up from prachuap

[gummy]

3 minutes ago, poohy said:

You little tinker ! You! I suspect its a sort of charter flight thingy sort off

Now saying that

I am flying to Dudley after Christmas i had requested a private pick up from prachuap

Anything can be arranged in Thailand, its just knowing or being the right people.

[Dancbmac]

On 11/4/2021 at 11:07 AM, AussieBob said:

https://www.slideshare.net/zzhelev/the-management-rowing-race-28075400

LOL this wraps it up nicely!