It is no surprise that after promising profits for 2018, Thai Airways ended up losing far more than expected. This is Thai Airways after all, where there remains eternal optimism in king and insanity.
While Thailand is still mourning the loss of King Bhumibol Adulyadej through ubiquitous billboards and memorials, it has a new reason to mourn: state-backed Thai Airways keeps digging itself into a deeper hole. And yet the optimistic turn-around plan has largely involved maintaining status quo. Doing the same thing and expecting a different result sounds like a textbook definition of insanity to me.
Thai Airways just reported a $365 million loss for 2018. In 2017 the carrier “only” lost $66 million and vowed to be profitable in 2018 by slashing unprofitable routes and reducing its fleet size. Instead, it has cut very few routes and actually grown its fleet size. This has caused load factors and yields to drop. But don’t worry! Thai now projects it will be profitable by 2022.
But while I’m just an American analyst, count me skeptical. After all, Thai Airways has more fleet diversity than flavors of ice cream and just failed its FAA safety inspection…again.
Why are people booking away from Thai? One reason is high prices for an inferior product. Thai’s business class seat is deplorable on many routes and yet the carrier often charges more than its rivals. The airline also has older, inefficient aircraft and labor contracts that are no longer regionally competitive. Stories of graft and nepotism abound. Accountability is dependent upon who you know, not clear and transparent rules.
It is not surprising that all that leads to losses. And of course, regional competition continues to increase.
CONCLUSION
I am still rooting for Thai Airways. No one wants to see any airline fail. But I grow increasingly pessimistic this poorly-run airline can ever turn itself around, absent government policy that shuts out all competition from Thailand. That won’t happen…
> Read More: Big Trouble For Thai Airways As Losses Double
> Read More: Captain Delays Flight 2.5 Hours When Denied First Class Seats For Friends
(H/T: One Mile at a Time)
Thai is just another feature of Amazing Thailand!
Their schedules leave a lot to be desired to, at almost no notice they reduced their BKK-SYD operation by 50% making decent connections to Europe impossible keeping the service that doesn’t connect either way in less than ten hours in operation and then on to a 747 which has their oldest business class seats. The logic of that defies me when they have some very well equipped A350s serving some relatively minor routes.
Again at present the A380 is being removed more often than not from the LHR service and in doing that they remove F because the 77W substituting does not have it. This is currently happening at least 50% of the time so why book F because you are more likely not to get it than get it.
And they wonder why they are losing money! It certainly is Amazing Thailand.
They never answer customers feedbacks
Matthew, you just joined the fast track to blacklisting on travel to Thailand.. 555.
Jokes aside, I’m flying TG911 tomorrow and it been downgraded to a 777 (from A380). Busy time of year so completely full.
Reason I fly Thai LHR/BKK is frequency and service in economy. Often TG916 is 30% full on return. No wonder the airline loses so much money. Their Biz class is way too expensive compared to Emirates et al. They have no premium class either which is a shame. Service in all classes doesn’t seem as good as it was 5 years ago and many crew seem stressed.
Many times Thai Airways fly 777/747 on domestic routes which is insane. Did they ever offload their numerous ineficient A340s?
Economy fares aren’t bad these days with discounted/restricted Y class as low as £505 r/t LHR/BKK and Y full flex for £800-£1000.
Their ROP Gold (Star Alliance) and its benefits is easy to acquire for a spend of just £5’600 in 2 years buying Y class tickets. Giving free upgrades, lounge access, fast track security, extra/priority baggage, priority boarding and 50% biz class mileage redemptions.
I wish TG would bring the A350 back onto the LHR/BKK route as they did on some flights last year. On one occasion they switched to A380 with just 200 passengers on board 3 seats for each passenger in economy!
How does a publically listed company such as Thai Airways provide discounted tickets to its major shareholder (ie government) at 5% below cost? Please explain how they justify a ticket price of circa $800 for Sydney/Bkk return yet $1450 for Bkk/Sydney return?
Thai should practice high standard of Management as done one or two decades back and ensure external audit at periodical intervals at all grey areas of graft including all online stations in order to ensure transparency and accountability, thank you with good wishes to be in profitability ratio in days to come.
Worth mentioning the Thai crews too, most of whom have seen better days. Gone are the friendly smiles and happy demeanours.
Also some senior flight crew have been posturing unduly, think of the TG971 captain refusing to fly until his off duty colleagues were seated in First and the captain of TG110 slapping a flight attendant for not offering him a meal.
Yes, smiles and happy demeanour are long since gone ( retained only in advertising spin and passenger memories of times past)
I was on a TG flight the other day: in Y, with a very large group of passengers from the subcontinent. It wasn’t easy because they had all requested special meals but there weren’t enough to go around. 2 of the young FAs were unbelievably rude to these passengers ( fortunately one of the older ones salvaged the situation by showing the grace for which Thai used to be known).
But it’s a pale shadow of the airline it used to be.
Accountability leading to external audit to monitor possible graft and nepotism both at head office and all online stations abroad call of day is one vital area to combat loss scenario.
Agreed with your comments.
Thai Airways international Public company limited,, has long business experience. It has many tactics and strategies to handle worst financial crisis. I hope it will be taken care by the management team. However, many instances of poor service attitudes of on board flight crews, online stations expensive expatriate position, no external AUDIT, no attractive infringement benefit to front line staff members comparing to other equivalent carrier also impairing business reputation- consequently financial losses.
With no offence to any one ,believe many expatriate staffs stationed abroad having honeymoon time at workplace,costs should be reviewed,nonproductive local staff having below standard academic portfolio preferably with 20 years service length should be given golden handshake,strong human resource department to verify efficient level index in line with international criteria,share experience of Singapore Airlines and emerging Vietnam airways are within asian belt will be handy,it is of utmost importance to restore ailing economy, if necessary, convene a day town hall meeting with professionals from both Thailand and abroad beyond active airline officials and this brainstorming session will help to bring good governance, sincerely, 40 years experienced think tank and strong academic feat in Masters with affiliation of Indiana university USA ,THANK YOU AND ANTICIPATING GLORIFIED TEAM IN DAYS AHEAD.
With no offence to any one ,believe many expatriate staffs stationed abroad having honeymoon time at workplace,costs should be reviewed,nonproductive local staff having below standard academic portfolio preferably with 20 years service length should be given golden handshake,strong human resource department to verify efficient level index in line with international criteria,share experience of Singapore Airlines and emerging Vietnam airways are within asian belt will be handy,it is of utmost importance to restore ailing economy, if necessary, convene a day town hall meeting with professionals from both Thailand and abroad beyond active airline officials and this brainstorming session will help to bring good governance, sincerely, 40 years experienced aviation think tank and strong academic feat in Masters with affiliation of Indiana university USA ,THANK YOU AND ANTICIPATING GLORIFIED TEAM IN DAYS AHEAD.
Strongly confident,with new president take over,Thai will bounce back by reviewing policy regarding management skills,cost reduction on expatriates,most importantly to keep an hold to on process policy matters both at head office and online stations abroad call of day, online stations managerial and financial activities must be monitored at weekly intervals through modern technology,THANK YOU AND CONGRATULATE TO NEW PRESIDENT.
VAt should be zero for Thai airways stations abroad since airlines in Thailand enjoying zero vat in order to persue/ attain spirit of reciprocity, negotiation with respective revenue departments via diplomatic channels should be in card will lead to save substantial revenue for now and in days to come.thank you for instant attention.
Expatriates stationed abroad must be in radar by withdrawing blanket authority, example: Dhaka station involved in receiving handsome kickback on multiple transactions by legalizing via invoicing as socalled charges for professional services practiced at regular intervals since year 2016 to 2018,expatriate boss claiming false medical bill every month under the name of local staff in collusion with infamous backbitting character of local administrator must be brought to justice by all means, city supervisory staff claiming handsome sum each month as overtime in violation of local PER another grey area to be under investigation, thank you and hoping good governance will be at in this part of industry.
New President to kindly consider all public comments to help reduce loss index with utmost priority as EVERY LITTLE DROP OF WATER MAKES BIG OCEAN AT CLOSE OF DAY. Therefore,please clamp emergency at all levels of organization both Thailand and all field offices abroad ,Great Thank you as a strong loyalist to branded company Thai first ,Thai last.
Please please please ,Thai board and PM of Thailand notice to do accountability and neutral auditing into deep as in paper things may not be visible to turn airline into profit as new generation deviated from cardinal principles of past management practice leading to decline makes us painful,Thank you with highest regards.