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CHRISBA35X
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Thu Oct 24, 2019 2:56 pm

I'd get rid of everything save for the newer A333s and 788/789s. Operate the Airbuses regionally and the Dreamliners for long-haul.

I'd get rid of First and just focus on a Premium Y and a really excellent C product.

I'd cede any route the A333s cant make money on to Thai Smile. I'd buy a load of A221/223 for them.

I'd cease any long haul flying that doesn't make money with the 788/789 in a higher density C/Y+/Y config. That means codeshares on *A for the rest.

I'd have a bonfire of middle management roles that the airline doesn't need.

I'd ask the Thai Govt to reduce landing fees at BKK for me and to increase them for other airlines.

I'd acquire Bangkok Airways and absorb them into Thai Smile, get rid of all their fleet and just have A221/223.

Just off the top of my head.
 
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mercure1
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Thu Oct 24, 2019 3:09 pm

LAXintl wrote:
Airline Weekly as their feature analysis this week looks at TG

Some story highlights:
o TG home market share is merely 16%. One of the lowest in world for a national carrier
o Facings intense competition from all sides - LCCs, Chinese and Indian carriers, ME3 and carriers of every stripe from around the world.
o Suffers from years of unhelpful political meddling including executive turnover
o Overstaffed and low productivity
o Overly complex fleet
o Currency management issues - only 6% of revenue USD, but 57% of cost
o Failed to devise a coordinated strategy between TG, TG Smile and its Nok Air investment
o Split Bangkok airport with domestic customer preference to use DMK
o Outmoded pricing and revenue management practices which has historically relied on bulk discounting and tour operators
o Positions itself as a premium carrier yet has a largely outdated product in a market which is primarily low-yield tourists and local VFR
o Many non-core assets and business ventures
o Experiencing traffic decline in 6 of airlines top 10 international markets


Thank you for sharing bullet points. They seem quite accurate.

Surprising how low market share TG has. It's almost irrelevant to the market. Of course, this result of Thailand maintaining open doors and encouraging air service from others to boost its large tourism sector. If TG were to disappear tomorrow suppose market would backfill quite quickly any missing demand.

And yes things like over complex fleet with so many aircraft and engines along with having hands involved in all types of other subsidiary business adds complexity and takes focus away.

And product wise, TG at one time had a reputation for good premium product it no longer holds true in 2019 against so many other better competitors. Also TG one of tew airlines that still has a First Class - why bother? A decent competitive business class will suffice, and not a large one needed either considering the home is far more budget-minded than competing nations nearby that do truly have a business and premium demand home market.
mercure f-wtcc
 
TheEuphorian
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Oct 25, 2019 11:57 am

SQ789 wrote:
TheEuphorian wrote:
Should have been privatized since 1997.

The only way to fix TG now is to turn it into a semi-LCC/tourist airline AND completely privatize it, sell all the 747/772A/77E/773, remove F ,introduce 10-ab Y in the 77W and Buy-on-Board for anything shorter than 3 hours and acquire narrowbodies.

Or shut it down would be a great idea. If Thai got shut down, what will happen to Thai Aviation. I say this because some rumors reports that Thai will possibly shut down.

I can see a situation where a smaller airline or another company will acquire (some) TG staff and planes, but use a new branding for it similar to what happened to Swissair/Sabena.
 
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DL747400
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Oct 25, 2019 12:07 pm

Thai-litalia. Their time has passed. They have failed to adapt. Their window of opportunity to turn the ship around is closing. The Thai government have nowhere near the patience nor the deep pockets of Italy, so this drama will not be allowed to play out over decades. Thai-litalia's clock is ticking at a much faster pace.
From First to Worst: The history of Airliners.net.

All posts reflect my opinions, not those of my employer or any other company.
 
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janders
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 01, 2019 6:05 pm

"We make war that we may live in peace." -- Aristotle
 
bennett123
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 01, 2019 6:20 pm

Is it normal for the CEO to resign with immediate effect?.

Any idea what the ‘new man’ will do?.
 
Scarebus34
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 01, 2019 6:39 pm

Turn all domestic and short-Haul services over to Thai Smile...
 
peterinlisbon
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 01, 2019 7:03 pm

They said my Thai had to go to rehab, I said no no ไม่.
 
lawair
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 01, 2019 7:06 pm

bennett123 wrote:
Is it normal for the CEO to resign with immediate effect?.

Any idea what the ‘new man’ will do?.


I think he offered his resignation in August. The letter just effectuates it.

https://www.bangkokpost.com/business/17 ... try-boards

I'm not a fan of this CEO either. A lot of TG spectators would've loved to have the former CEO Piyasvasti return. Things really started turning around under him.
 
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mercure1
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 15, 2019 7:57 pm

Red ink mounts.

Thai Airways International has announced the turnover of the company and its affiliates for Q3 of 2019, reporting net losses of 4.68 billion baht, a full 27% higher than last year’s result, an additional loss of 994 million baht.
In the third quarter of 2019, the company and its affiliates generated revenue of 45.016 billion baht, which is 6.1% or 2.937 billion baht lower than last year’s revenue. In the first nine months of 2019, Thai Airways’ accumulated loss is 11 billion baht.


In the first nine months of 2019, Thai Airways’ accumulated loss is 11 billion baht.
https://thethaiger.com/hot-news/transpo ... -this-year
mercure f-wtcc
 
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janders
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Sat Nov 16, 2019 4:27 pm

11 billion baht is about US $365mil loss in 9 months.

Quite large amount for modest sized airline.

Also interesting total revenue dropped. Not good sign
"We make war that we may live in peace." -- Aristotle
 
questions
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Sun Nov 17, 2019 4:24 am

mercure1 wrote:
LAXintl wrote:
Airline Weekly as their feature analysis this week looks at TG

Some story highlights:
o TG home market share is merely 16%. One of the lowest in world for a national carrier
o Facings intense competition from all sides - LCCs, Chinese and Indian carriers, ME3 and carriers of every stripe from around the world.
o Suffers from years of unhelpful political meddling including executive turnover
o Overstaffed and low productivity
o Overly complex fleet
o Currency management issues - only 6% of revenue USD, but 57% of cost
o Failed to devise a coordinated strategy between TG, TG Smile and its Nok Air investment
o Split Bangkok airport with domestic customer preference to use DMK
o Outmoded pricing and revenue management practices which has historically relied on bulk discounting and tour operators
o Positions itself as a premium carrier yet has a largely outdated product in a market which is primarily low-yield tourists and local VFR
o Many non-core assets and business ventures
o Experiencing traffic decline in 6 of airlines top 10 international markets


Thank you for sharing bullet points. They seem quite accurate.

Surprising how low market share TG has. It's almost irrelevant to the market. Of course, this result of Thailand maintaining open doors and encouraging air service from others to boost its large tourism sector. If TG were to disappear tomorrow suppose market would backfill quite quickly any missing demand.

And yes things like over complex fleet with so many aircraft and engines along with having hands involved in all types of other subsidiary business adds complexity and takes focus away.

And product wise, TG at one time had a reputation for good premium product it no longer holds true in 2019 against so many other better competitors. Also TG one of tew airlines that still has a First Class - why bother? A decent competitive business class will suffice, and not a large one needed either considering the home is far more budget-minded than competing nations nearby that do truly have a business and premium demand home market.


Does TG have anything of value?

What’s the probability of:
- Significant reorganization (financial, leadership, organization, fleet, network)
- Sale to another airline
- TG ceases operations; sale of valuable assets
- TG ceases operations; nothing of real value to sell
 
Philippine747
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Sun Nov 17, 2019 4:44 am

questions wrote:
mercure1 wrote:
LAXintl wrote:
Airline Weekly as their feature analysis this week looks at TG

Some story highlights:
o TG home market share is merely 16%. One of the lowest in world for a national carrier
o Facings intense competition from all sides - LCCs, Chinese and Indian carriers, ME3 and carriers of every stripe from around the world.
o Suffers from years of unhelpful political meddling including executive turnover
o Overstaffed and low productivity
o Overly complex fleet
o Currency management issues - only 6% of revenue USD, but 57% of cost
o Failed to devise a coordinated strategy between TG, TG Smile and its Nok Air investment
o Split Bangkok airport with domestic customer preference to use DMK
o Outmoded pricing and revenue management practices which has historically relied on bulk discounting and tour operators
o Positions itself as a premium carrier yet has a largely outdated product in a market which is primarily low-yield tourists and local VFR
o Many non-core assets and business ventures
o Experiencing traffic decline in 6 of airlines top 10 international markets


Thank you for sharing bullet points. They seem quite accurate.

Surprising how low market share TG has. It's almost irrelevant to the market. Of course, this result of Thailand maintaining open doors and encouraging air service from others to boost its large tourism sector. If TG were to disappear tomorrow suppose market would backfill quite quickly any missing demand.

And yes things like over complex fleet with so many aircraft and engines along with having hands involved in all types of other subsidiary business adds complexity and takes focus away.

And product wise, TG at one time had a reputation for good premium product it no longer holds true in 2019 against so many other better competitors. Also TG one of tew airlines that still has a First Class - why bother? A decent competitive business class will suffice, and not a large one needed either considering the home is far more budget-minded than competing nations nearby that do truly have a business and premium demand home market.


Does TG have anything of value?

What’s the probability of:
- Significant reorganization (financial, leadership, organization, fleet, network)
- Sale to another airline
- TG ceases operations; sale of valuable assets
- TG ceases operations; nothing of real value to sell


TG has significant mx facilities in DMK. They also have a full training facility complete with simulators and cabin trainers.
A319 A320 A321 A332 A333 A343 AT75 AT76 B732 B733 B738 B744 B752(M) B763 B772 B77W DHC7 DH8C DH8D D328 MA60

2P 5J 6K CX DG EK GA KE MI PR VN OS QR A3 OK TG RA U4 JL GK UB K7 WE BR
 
TheEuphorian
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Sun Nov 17, 2019 1:12 pm

questions wrote:
mercure1 wrote:
LAXintl wrote:

What’s the probability of:
- Significant reorganization (financial, leadership, organization, fleet, network)
- Sale to another airline
- TG ceases operations; sale of valuable assets
- TG ceases operations; nothing of real value to sell


- Significant reorganization (financial, leadership, organization, fleet, network)
Highest chance, but only if TG gets fully privatized with no government interference.
- Sale to another airline
Possible, but hard to happen because of "national pride"
- TG ceases operations; sale of valuable assets
Possible, but hard to happen because of "national pride"
- TG ceases operations; nothing of real value to sell
-Impossible because of Thai Government
 
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janders
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 22, 2019 6:38 pm

Say what?

:eek:

THAI boss insists big losses 'normal'
https://www.bangkokpost.com/business/17 ... ses-normal
"We make war that we may live in peace." -- Aristotle
 
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UPlog
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 22, 2019 7:37 pm

janders wrote:
Say what?

:eek:

THAI boss insists big losses 'normal'
https://www.bangkokpost.com/business/17 ... ses-normal


Can we say head-in-the-sand

Sounds like the CEO is unwilling to recognize or acknowledge the problem and situation TG is in, and instead making up excuses.
I fly your boxes
 
usflyer msp
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 22, 2019 8:04 pm

I think that is a mistranslation.
From the context of the article, I think he was trying to say the losses were in line with expectations and that things are getting better.
 
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spinotter
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Nov 22, 2019 8:46 pm

peterinlisbon wrote:
They said my Thai had to go to rehab, I said no no ไม่.


Very good. And we know what happened to her. A number of other airlines could be slotted into that song - SA. AZ, MH, GA - any others?
 
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LAXintl
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Thu Dec 19, 2019 7:00 pm

Thai Airways president Sumeth Damrongchaitham says the national carrier will submit a 2020-2025 rehabilitation plan to the Board of Directors in January, with a separate purchasing plan for new aircraft also being put forward.
Thai Airways has been an enormous loss-maker for the Thai government for a decade with annual losses increasing over the years. For the first 9 months of 2019 the airline publicly acknowledged losses of 11 billion baht.


Thai Airways presents new recovery plan for board approval
https://thethaiger.com/news/business/th ... d-approval

=

Lets see of the latest ideas will pan out to much and change the financial fortunes of the airline.
From the desert to the sea, to all of Southern California
 
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janders
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Dec 20, 2019 3:33 pm

Wash, rinse, repeat. Seems endless loop with TG.

Unless the "new" rehabilitation plan tackles the tough decisions which from the article it won't, not much will improve at TG.
"We make war that we may live in peace." -- Aristotle
 
Prost
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Dec 20, 2019 4:58 pm

Let me guess, 3 of everything Airbus and Boeing make, with different engine manufacturers.
 
Motorhussy
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Dec 20, 2019 6:44 pm

Streamline fleet: A380, A350-1000, A350-900, 787-10, 787-9, 787-8, A321neo and A320neo

Streamline staff: have fewer people on the ground doing more.

Streamline customer experience: all aircraft having consistent cabin product. All ground and cabin crew presenting a consistent Thai experience.

Semi privatise: offer shareholding to the market or institutional investor with Govt remaining with foundation 51 percent.

Review airline classes: possibly remove F in A380 and introduce premium economy in long haul.

Review destinations: ensure the right aircraft to the right destinations with the right frequency. Reduce capacity where necessary but keep frequency to attract business customers. Cut non-performing routes and work with airline partners to keep a presence where possible.

Start a dedicated Phuket leisure fleet of A321neo/lr/xlr for Australia, Japan etc and 787 family for European international services and cease triangular routes.

Start a dedicated A321 international fleet for regional Chiang Mai services.

Establish corporate structure to remove operational Govt interference except for boardroom oversight.

Strengthen partnerships with *alliance airlines and other partners.

Build on advantage of BKK hub.

My 2¢ worth.
come visit the south pacific
 
Delta28L
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Dec 20, 2019 6:51 pm

Thailand should quit handing out so many fifth or whatever freedom routes that eat into Thais passenger count and build the fleet around one or two long haul fleets and one narrow body fleet with the same engine.
 
fessor
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Dec 20, 2019 8:44 pm

Thai would need A380 in same layout as emirates 2 Class
Then 777-300er with first class for routes that can handle F.
A359 2 class for all other longhaul routes.
A339 for inter Asian trunk routes
A321 for the rest and domestic
 
Motorhussy
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Dec 20, 2019 9:22 pm

fessor wrote:
Thai would need A380 in same layout as emirates 2 Class
Then 777-300er with first class for routes that can handle F.
A359 2 class for all other longhaul routes.
A339 for inter Asian trunk routes
A321 for the rest and domestic


Most comparable airlines with similar long-haul routes are doing very well with a premium-economy product, with many ditching F given the premium nature of modern J.
come visit the south pacific
 
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zeke
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Dec 20, 2019 10:04 pm

Motorhussy wrote:
Streamline fleet: A380, A350-1000, A350-900, 787-10, 787-9, 787-8, A321neo and A320neo.


They could actually could get rid of all of their wide body Airbus aircraft. Almost all of their destinations are under 5000 mm which the 787-10 could handle, they don’t carry a lot of freight.

For the few longer destinations they could use the 787-9.
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fessor
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Sat Dec 21, 2019 3:54 am

Motorhussy wrote:
fessor wrote:
Thai would need A380 in same layout as emirates 2 Class
Then 777-300er with first class for routes that can handle F.
A359 2 class for all other longhaul routes.
A339 for inter Asian trunk routes
A321 for the rest and domestic


Most comparable airlines with similar long-haul routes are doing very well with a premium-economy product, with many ditching F given the premium nature of modern J.


TG tried a kind of Premium economy on the router to CPH and ARN but have ended both
You got a business seat and economy service, they now sell all buisness seats and they go out full.

They will keep F at least on some routes simply of political reasons.
 
Clackers
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Sat Dec 21, 2019 12:24 pm

I am a fan of Thai (and MH) converting to a sort of no frills carrier and take the large part of the budget airfare market in the region. Let Singapore Airlines rule the roost internationally, forget national pride, and try and restructure a budget conscious airline in the ASEAN region.

No first class, no business class (apart from ULH flights to LHR), with premium economy and economy being the usual 2 class config. Thai can give out basic meals even in economy class, but no more catering trollies etc..

Thai even have Thai Smile on some routes already, so they have the knowledge of how to do it (unlike MH).

Yet I believe nothing will change with TG. It is said that upper management are restricted by the Government (?) who try to control too much with too little knowledge.
 
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mercure1
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Tue Dec 24, 2019 6:56 pm

Delta28L wrote:
Thailand should quit handing out so many fifth or whatever freedom routes that eat into Thais passenger count and build the fleet around one or two long haul fleets and one narrow body fleet with the same engine.


Tourism and the income it generates is one of the most important contributors to Thai GDP and has long been a priority for the government to support. One way to sustain a large tourism sector has been to maintain liberal air rights.

So yes such a liberal regime might hurt TG due to its weaker competitive position, but it does generate immense overall benefit for the country as a whole.
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abrelosojos
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Tue Dec 24, 2019 7:05 pm

behramjee wrote:
The media and Chairman of Thai is just playing "scare tactics" with the unions.

Thai Govt will never shut down TG because it plays an important role in bringing in forex $ + tourists into Thailand so if TG shuts down, it will have a major knock on side effect on the local economy. The core problem of TG like PK, AI, MH are "legacy issues" related to historical debt + fleet complexity which is related to "outside interference". TG has A380s, B744s, B777s, B787s, A350s, A330s and A320s operating i.e. 7 different aircraft families which is totally ridiculous in this day and age.

Last but not least, Thailand has open skies with everyone and this has been blatantly taken advantage of especially by the Gulf carriers who have taken a huge chunk of TG's EU/USA market share since 2005.


= Difference is AI is operationally profitable, and has a core growing market. TG, PK, and MH do not.

Saludos,
Alex
Live, and let live.
 
NZ321
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Wed Dec 25, 2019 4:46 am

TG could reinvent itself as could MH along NZ lines... LCC model short haul and full service long haul. Nothing silly about this as an idea and can only guess it is local politic getting in the way.
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eta unknown
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Wed Dec 25, 2019 5:32 pm

Delta28L wrote:
Thailand should quit handing out so many fifth or whatever freedom routes that eat into Thais passenger count and build the fleet around one or two long haul fleets and one narrow body fleet with the same engine.


Ask Royal Brunei how much they had to pay TG in royalties for every FRA-AUH/DXB-BKK and vv pax they transported- one of the main reasons FRA was discontinued.

I imagine EVA Air is paying royalties too on their Europe flights that operate via BKK.
 
kriskim
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Wed Dec 25, 2019 5:58 pm

Motorhussy wrote:
Review destinations: ensure the right aircraft to the right destinations with the right frequency. Reduce capacity where necessary but keep frequency to attract business customers. Cut non-performing routes and work with airline partners to keep a presence where possible.


They have started to do this with Australia, in 2018 they reduced SYD, MEL and BNE and changed aircraft for PER. They resized the market and it allowed them to push yields up and reallocate resources elsewhere. However they have recently made MEL double daily again from the reduced 11 weekly frequency, probably the only bright spot for TG in Australia.

I also think that there is a market for Thai Smile in medium haul.
A world built upon connectivity.
 
Motorhussy
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Wed Dec 25, 2019 9:28 pm

abrelosojos wrote:
behramjee wrote:
The media and Chairman of Thai is just playing "scare tactics" with the unions.

Thai Govt will never shut down TG because it plays an important role in bringing in forex $ + tourists into Thailand so if TG shuts down, it will have a major knock on side effect on the local economy. The core problem of TG like PK, AI, MH are "legacy issues" related to historical debt + fleet complexity which is related to "outside interference". TG has A380s, B744s, B777s, B787s, A350s, A330s and A320s operating i.e. 7 different aircraft families which is totally ridiculous in this day and age.

Last but not least, Thailand has open skies with everyone and this has been blatantly taken advantage of especially by the Gulf carriers who have taken a huge chunk of TG's EU/USA market share since 2005.


= Difference is AI is operationally profitable, and has a core growing market. TG, PK, and MH do not.

Saludos,
Alex


If the Indian Govt made aviation and even playing field and removed its operating advantages from AI, the airline would not last six months.
come visit the south pacific
 
Motorhussy
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Wed Dec 25, 2019 9:29 pm

Motorhussy wrote:
abrelosojos wrote:
behramjee wrote:
The media and Chairman of Thai is just playing "scare tactics" with the unions.

Thai Govt will never shut down TG because it plays an important role in bringing in forex $ + tourists into Thailand so if TG shuts down, it will have a major knock on side effect on the local economy. The core problem of TG like PK, AI, MH are "legacy issues" related to historical debt + fleet complexity which is related to "outside interference". TG has A380s, B744s, B777s, B787s, A350s, A330s and A320s operating i.e. 7 different aircraft families which is totally ridiculous in this day and age.

Last but not least, Thailand has open skies with everyone and this has been blatantly taken advantage of especially by the Gulf carriers who have taken a huge chunk of TG's EU/USA market share since 2005.


= Difference is AI is operationally profitable, and has a core growing market. TG, PK, and MH do not.

Saludos,
Alex


If the Indian Govt made aviation an even playing field and removed its operating advantages from AI, the airline would not last six months.
come visit the south pacific
 
memphiX
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Wed Dec 25, 2019 11:51 pm

Motorhussy wrote:
If the Indian Govt made aviation an even playing field and removed its operating advantages from AI, the airline would not last six months.


Forget about AI, lets take a look at TG and VN.
Twenty years ago, TG was miles ahead of VN; today, I say that VN is ahead of TG in most aspects. Why is that? They are both govt owned and operated.
It all comes down to management, and political uncertainty isn't helping either.
 
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mercure1
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Mon Feb 03, 2020 12:09 am

Surprising news --- Transport minister says Thai Airways must increase revenue, cut costs.

https://thethaiger.com/hot-news/transpo ... -cut-costs

Obviously coronavirus will also hit TG since Chinese tourism has been a significant part of visitors.
mercure f-wtcc
 
716131
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Mon Feb 03, 2020 2:19 am

mercure1 wrote:
Surprising news --- Transport minister says Thai Airways must increase revenue, cut costs.

https://thethaiger.com/hot-news/transpo ... -cut-costs

Obviously coronavirus will also hit TG since Chinese tourism has been a significant part of visitors.

Yeah, I think they never do cut costs before. But others like GA, DY and other trouble airlines has done cut costs already.
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LAXintl
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Mar 06, 2020 5:55 pm

Another year, and even larger loss

Thai Airways International losses widen
http://orientaviation.com/articles/4870 ... ment-sales

Thai Airways International (THAI) said it expected the year ahead to be challenging after posting a widening net loss in calendar 2019. The airline reported a THB12 billion (US$375 million) net loss for the 12 months to December 31 2019, compared with a THB11.6 billion loss in the prior corresponding period, THAI said in its full year results published on March 2.

THAI carried 24.51 million passengers in 2019, up 0.8% or 24.32 million passengers, for the same period in 2018. Passenger yield, an industry term measuring average airfares per passenger, slipped 6.8%. The airline ended calendar 2019 with 103 aircraft, unchanged from the previous year.
From the desert to the sea, to all of Southern California
 
DUSZRH
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Mar 06, 2020 6:17 pm

I think this was to be expected, given the talk in the last months (2-3 months ago).
 
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mercure1
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Mar 06, 2020 6:34 pm

And 2020 will obviously be far worse for TG than what 2018 and 2019 were.

Seems Thai government has big decision to make in regards to how much money they want to pump in to keep the airline on its feet and for how long.
mercure f-wtcc
 
ewt340
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Mar 06, 2020 7:58 pm

I don't understand their strategy, they know that thailand is a low-premium market. Why wouldn't they adapt to reality?
The operating cost would definitely be lower compared to ME3 or East Asian Carriers.

Other airlines like Vietnam Airlines which have smaller market and tough competition from LCC able to survive with a smart business strategy. Why can't they copy that and compete with all these foreign airlines?
 
smartplane
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri Mar 06, 2020 8:24 pm

With the benefit of hindsight, Thai, like Malaysia and Asiana too, must regret not taking a massive hit on the book value of their A380's, selling to an existing operator when they had the sniff of a chance, though a Dutch auction. And a legacy must be relieved they didn't.
 
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Airbus747
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Thai Airways $1.80 billion emergency loan approved

Thu Apr 30, 2020 12:18 pm

I'm aware TG was mentioned in various threads, but opened this separately now that the $1.80 billion loan has been approved by the Ministry of Finance (this means it will go through):
https://www.nytimes.com/reuters/2020/04 ... usive.html

As many know already
"The national carrier posted a net loss of 2.11 billion baht in 2017, which grew to 11.6 billion baht in 2018 and 12 billion last year, according to data from the Stock Exchange of Thailand."
https://thethaiger.com/news/national/th ... y-april-30

Thai citizens are protesting about this, as very little has been done to alleviate the hunger and poverty following the safety measures. Suicides have been spiking in the country:
https://www.bangkokpost.com/thailand/ge ... o-suicides
https://coconuts.co/bangkok/news/at-bre ... hemselves/
 
TheEuphorian
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Re: Thai Airways $1.80 billion emergency loan approved

Thu Apr 30, 2020 2:38 pm

Also, they have also been restructured in part of this deal:
-Original TG will become a holding company
-All aircraft and flight operations will be transferred to WE
-Ground staff will be controlled by AOT(Thai airport operator)
 
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VCVSpotter
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Thai Government Gives Final Bailout to Thai Airways, Retirements Ordered

Tue May 05, 2020 5:43 pm

Although not officially approved yet, it appears that the Thai government will be giving Thai Airways one final bailout. This is conditional on the retirement of aircraft and major internal restructuring. Does anybody know which aircraft will be retired? My bet is that the 6 oldest 772s (HS-TKA/B/C/D/E/F) will be one of the first to go, along with the 8 747-400s remaining (which are all in storage). Dire cuts may include the A380...does anybody have more info?

https://simpleflying.com/thai-airways-final-lifeline/
https://docs.google.com/spreadsheets/d/ ... edit#gid=0

Just a normal teenager juggling AP classes and airplanes. No biggie • Love the 747 & 777-9 • Farewell BA/KL 744s
 
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calstanford
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Re: Thai Government Gives Final Bailout to Thai Airways, Retirements Ordered

Tue May 05, 2020 5:48 pm

"final" haha. Yea right...
 
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mercure1
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Fri May 08, 2020 6:32 pm

Thai Airways International labor union has rejected the government’s bailout proposal, which is said to open the possibility of the airline becoming a privately-owned company.

https://www.khaosodenglish.com/news/bus ... out-plans/
mercure f-wtcc
 
TheEuphorian
Posts: 421
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Re: Minister: THAI "Financial Status Critical"; Rehab Program Failing

Mon May 11, 2020 3:54 am

mercure1 wrote:
Thai Airways International labor union has rejected the government’s bailout proposal, which is said to open the possibility of the airline becoming a privately-owned company.

https://www.khaosodenglish.com/news/bus ... out-plans/

Also, the labour union also called for WE(THAI Smile) to be shut down and reintegrated into mainline TG.
 
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CraigAnderson
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Rumour: Thai Airways flies into bankruptcy

Mon May 18, 2020 8:33 am

It's official, the Thai Government is putting THAI into a US-style Chapter 11 bankruptcy to it can embark on a "rehabilitation" plan which will see debt, fleet, routes and staff slashed.

https://www.executivetraveller.com/news ... bankruptcy
Last edited by SQ22 on Mon May 18, 2020 11:40 am, edited 1 time in total.
Reason: Title updated

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