TG management reorgansation
Sep 20, 2013, 4:41 am
#1
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TG management reorgansation
THAI has announced another (management) reorganisation:
(by "The Nation online newspaper")
Thai Airways International's board yesterday decided to overhaul the airline's commercial department to ensure its sales achieve this year's target of Bt170 billion.
"It's not easy to give this job to any single person. If sales drop by 1 per cent, that means THAI will lose Bt1.7 billion,'' said THAI president Sorajak Kasemsuvan.
It is the first change in the department in a decade, but it is essential because achieving the sales projection is not the job of any single person, he said. Also, the aviation business is very competitive.
The department was headed by an executive vice president, but under the restructuring, there will be five operations with their own sales targets.
Marketing and sales management will be responsible for ticket pricing. Sales operations for Thailand and Indochina will be responsible for sales in those markets and the call centre, with a sales target of Bt50 billion.
The sales operation for the regional market including Asia, Japan, South Korea, India and Pakistan will get a sales target of Bt60 billion.
The intercontinental sales operation covers Europe, Australia and Africa with a sales target of Bt60 billion.
The commercial digital operation is responsible for social networks, with its sales target doubled to Bt36 billion.
The five units will be under the executive vice president for commercial operations. They will be the new generation coming up with new ways of managing sales operations. The change will be implemented in the first quarter of next year and progress will be evaluated every three and six months.
The board also approved the recruitment of 280 aircrew members. It had previously decided to employ 500 in total and 247 have been chosen to work with the company already.
The sale of an Airbus A340-500 was not considered at the meeting. The company is considering its options on the matter.
(by "The Nation online newspaper")
Thai Airways International's board yesterday decided to overhaul the airline's commercial department to ensure its sales achieve this year's target of Bt170 billion.
"It's not easy to give this job to any single person. If sales drop by 1 per cent, that means THAI will lose Bt1.7 billion,'' said THAI president Sorajak Kasemsuvan.
It is the first change in the department in a decade, but it is essential because achieving the sales projection is not the job of any single person, he said. Also, the aviation business is very competitive.
The department was headed by an executive vice president, but under the restructuring, there will be five operations with their own sales targets.
Marketing and sales management will be responsible for ticket pricing. Sales operations for Thailand and Indochina will be responsible for sales in those markets and the call centre, with a sales target of Bt50 billion.
The sales operation for the regional market including Asia, Japan, South Korea, India and Pakistan will get a sales target of Bt60 billion.
The intercontinental sales operation covers Europe, Australia and Africa with a sales target of Bt60 billion.
The commercial digital operation is responsible for social networks, with its sales target doubled to Bt36 billion.
The five units will be under the executive vice president for commercial operations. They will be the new generation coming up with new ways of managing sales operations. The change will be implemented in the first quarter of next year and progress will be evaluated every three and six months.
The board also approved the recruitment of 280 aircrew members. It had previously decided to employ 500 in total and 247 have been chosen to work with the company already.
The sale of an Airbus A340-500 was not considered at the meeting. The company is considering its options on the matter.
Dec 20, 2013, 8:44 am
#2
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Resignation of THAI President
Bangkok, 20 December 2013 – Thai Airways International Public Company Limited (THAI) announces the resignation of Mr. Sorajak Kasemsuvan, THAI President.
Mr. Kanit Sangsubhan, Chairman of Executive Board of THAI Board of Directors said Mr. Sorajak Kasemsuvan, THAI President, has tendered a letter of resignation to the Board of Directors, citing health reasons. As the advice by medical physicians to take a medical leave of absence for a minimum of 2-3 months would have an impact on the duties of the President and on Company operations, Mr. Kasemsuvan has, therefore, submitted his resignation from the position of THAI President, as well as from Nok Air Board of Directors and THAI Smile Board of Directors.
As such, the THAI Board of Directors has approved and accepted the resignation of Mr. Kasemsuvan, after having considered that Mr. Kasemsuvan has demonstrated much diligence in the duties of the President since taking this position in 2012, and having considered the medial reasons for the resignation and potential impact to the Company. The date for the resignation to take effect shall be from 2 January 2014.
For the interim, the THAI Board has appointed Mr. Chokchai Panyayong, Senior Executive Vice President of Commercial to be Acting THAI President, effective from 2 January 2014.
Bangkok, 20 December 2013 – Thai Airways International Public Company Limited (THAI) announces the resignation of Mr. Sorajak Kasemsuvan, THAI President.
Mr. Kanit Sangsubhan, Chairman of Executive Board of THAI Board of Directors said Mr. Sorajak Kasemsuvan, THAI President, has tendered a letter of resignation to the Board of Directors, citing health reasons. As the advice by medical physicians to take a medical leave of absence for a minimum of 2-3 months would have an impact on the duties of the President and on Company operations, Mr. Kasemsuvan has, therefore, submitted his resignation from the position of THAI President, as well as from Nok Air Board of Directors and THAI Smile Board of Directors.
As such, the THAI Board of Directors has approved and accepted the resignation of Mr. Kasemsuvan, after having considered that Mr. Kasemsuvan has demonstrated much diligence in the duties of the President since taking this position in 2012, and having considered the medial reasons for the resignation and potential impact to the Company. The date for the resignation to take effect shall be from 2 January 2014.
For the interim, the THAI Board has appointed Mr. Chokchai Panyayong, Senior Executive Vice President of Commercial to be Acting THAI President, effective from 2 January 2014.
Dec 22, 2013, 12:56 am
#3
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"Resignation of THAI President"
Great, maybe they could reemploy the previous guy but no doubt that would involve too much "loss of face".
Similarly the current guy has resigned due to health issues rather than being given the boot for being useless.
Great, maybe they could reemploy the previous guy but no doubt that would involve too much "loss of face".
Similarly the current guy has resigned due to health issues rather than being given the boot for being useless.
Dec 22, 2013, 6:48 am
#4
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Sorry, but he was far worse then just being useless. He's pretty much made TG so bad that I gave up on them and am giving other airlines my business now. I went from being a big supporter of TG, while recognizing they did have some issues, to outright avoiding them unless no other choices. Well, glad this came now, being my ROP gold expires at the end of next year. Perhaps I'll reconsider renewing it if they select someone at least half-way decent. Even someone who just sits on their hands all day and does absolutely nothing would be better than the incompetent outgoing president. Anyways, best news related to TG I've heard all year.
Dec 22, 2013, 7:55 am
#5
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Totally agree A_Lee. I recently turned Gold for a third time and my wife Gold for the first. Thai wouldn't give me the one class itinerary upgrade because the first day of travel was on the last day of my previous Gold period. I gave up, cancelled the whole booking and went on SQ (DXB<>Australia via SIN). Far better product despite no upgrade.
This event caused the scales to drop from my eyes. I finally had to admit to myself how poor TG product and service had become of the five years I've been a frequent traveller with them. The last money they will ever get from me until they get their act back together is the one I'll take to get the one class full itinerary upgrade.
TG has dropped to a third tier carrier and continues to sink fast. It was a travesty that the second last president was replaced at all, let alone by this last guy.
This event caused the scales to drop from my eyes. I finally had to admit to myself how poor TG product and service had become of the five years I've been a frequent traveller with them. The last money they will ever get from me until they get their act back together is the one I'll take to get the one class full itinerary upgrade.
TG has dropped to a third tier carrier and continues to sink fast. It was a travesty that the second last president was replaced at all, let alone by this last guy.
Dec 23, 2013, 2:07 am
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another interesting article in today's "The Nation":
Sorajak Kasemsuvan's resignation as president of Thai Airways International last week was no surprise, given external and internal pressure he has had to endure throughout the past 14 months.
Externally, THAI and other premium airlines have been affected by the rapid expansion of low-cost airlines. The situation will only get worse. According to The Wall Street Journal, at least 10 new low-cost carriers are set to take off in Asia in the coming year, expanding fare choices for consumers but squeezing airline margins even more.
According to the International Air Transport Association (IATA), though Asia-Pacific airlines' EBIT (earnings before interest and tax) margin will rise to 4.4 per cent in 2014 from 4.1 per cent this year, their profitability is subdued by weakness in cargo demand and the expect?ed delivery of 710 new aircraft.
THAI this year took delivery of 17 new air?craft, though that number is dwarfed by orders from airlines based in the Persian Gulf.
http://www.nationmultimedia.com/busi...-30222689.html
Sorajak Kasemsuvan's resignation as president of Thai Airways International last week was no surprise, given external and internal pressure he has had to endure throughout the past 14 months.
Externally, THAI and other premium airlines have been affected by the rapid expansion of low-cost airlines. The situation will only get worse. According to The Wall Street Journal, at least 10 new low-cost carriers are set to take off in Asia in the coming year, expanding fare choices for consumers but squeezing airline margins even more.
According to the International Air Transport Association (IATA), though Asia-Pacific airlines' EBIT (earnings before interest and tax) margin will rise to 4.4 per cent in 2014 from 4.1 per cent this year, their profitability is subdued by weakness in cargo demand and the expect?ed delivery of 710 new aircraft.
THAI this year took delivery of 17 new air?craft, though that number is dwarfed by orders from airlines based in the Persian Gulf.
http://www.nationmultimedia.com/busi...-30222689.html
Last edited by Prospero; Dec 31, 2013 at 2:28 am Reason: Trim content of copyrighted article to align with FT's fair usage guidelines
Dec 30, 2013, 10:22 pm
#7
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TG President Resigns "For Health Reasons"
Jan 3, 2014, 11:21 pm
#8
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I also have to agree. After having ROP Gold for about 6-7 years running, I lost status this past year and just used up the last of the miles for a hotel voucher. ROP really worked for me, for awhile, but the erratic nature of product/service and the high cost of awards in both miles and extra fees/YQ, just no longer seemed worth it especially if not Thailand-based and ratcheting back on trips through/to BKK. Loss of the nonstop BKK-LAX left me with no compelling reason to pick them over other options with connections. :-((
Jan 5, 2014, 11:53 pm
#9
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Well, I made the decision. Bye TG. My ROP Gold expires this year, and after many years I won't be renewing, nor will I be flying TG anymore, except on some rare occasions, and sometimes for domestic flights. I burned my remaining miles on some hotel vouchers. As with you, jiejie, it's just not a good value anymore when I calculate the numbers. The ridiculous surcharge they added for C/F awards, combined with already poor earn/burn rates, and just all the complete ineptness created by the former president. Perhaps the new president will turn things around, but I'm not going to wait around and find out. Perhaps I'll be back in the future, but I sort of doubt it. Congratulations TG on doing your best to piss off some of your best customers.
Jan 8, 2014, 2:32 am
#10
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BKK Post published: the follwing article today:
THAI dismisses rumours of impending bankruptcy
Thai Airways International (THAI) Plc and the Transport Ministry have denied a rumour the national carrier will be declared bankrupt in May.
Caretaker Transport Minister Chadchart Sittipunt said yesterday there was no substance to the rumour which is spreading on social media and the internet.
He also denied a rumour that a politician would take over the airline.
Mr Chadchart was responding to a report that a political group which has influence over the airline's board is attempting to ruin the company financially.
Their efforts helped push the company to a loss of 6.35 billion baht in the third quarter of last year.
According to the rumour the company, which is listed on the Thai stock exchange, would declare bankruptcy in May.
That would pave the way for a debt-restructuring process and for ousted prime minister Thaksin Shinawatra to take over the company.
"The rumour is groundless," Mr Chadchart said.
Chokchai Panyayong, THAI senior executive vice-president and acting president, said it was impossible THAI would go bankrupt since the company is a state enterprise in which the Finance Ministry holds a stake of up to 51%.
Therefore, those who want to be shareholders must buy shares on the stock market knowing they can only hold a minority interest.
He said THAI's financial status is still far from bankruptcy.
"THAI has never once defaulted," he said.
Despite its loss in the third quarter of last year, the company still has high liquidity and has a clear plan for debt repayment, he said.
Mr Chokchai said that as of Sept 30 last year, THAI had 315.9 billion baht in assets and liabilities of only 183.5 billion baht.
He said the loss stemmed from the company's huge investment in improving its fleets and services to attract more customers.
Mr Chokchai said THAI aims to increase revenue by 5% next year, thanks to its new fleet of 14 aircraft and an energy cost reduction plan.
THAI dismisses rumours of impending bankruptcy
Thai Airways International (THAI) Plc and the Transport Ministry have denied a rumour the national carrier will be declared bankrupt in May.
Caretaker Transport Minister Chadchart Sittipunt said yesterday there was no substance to the rumour which is spreading on social media and the internet.
He also denied a rumour that a politician would take over the airline.
Mr Chadchart was responding to a report that a political group which has influence over the airline's board is attempting to ruin the company financially.
Their efforts helped push the company to a loss of 6.35 billion baht in the third quarter of last year.
According to the rumour the company, which is listed on the Thai stock exchange, would declare bankruptcy in May.
That would pave the way for a debt-restructuring process and for ousted prime minister Thaksin Shinawatra to take over the company.
"The rumour is groundless," Mr Chadchart said.
Chokchai Panyayong, THAI senior executive vice-president and acting president, said it was impossible THAI would go bankrupt since the company is a state enterprise in which the Finance Ministry holds a stake of up to 51%.
Therefore, those who want to be shareholders must buy shares on the stock market knowing they can only hold a minority interest.
He said THAI's financial status is still far from bankruptcy.
"THAI has never once defaulted," he said.
Despite its loss in the third quarter of last year, the company still has high liquidity and has a clear plan for debt repayment, he said.
Mr Chokchai said that as of Sept 30 last year, THAI had 315.9 billion baht in assets and liabilities of only 183.5 billion baht.
He said the loss stemmed from the company's huge investment in improving its fleets and services to attract more customers.
Mr Chokchai said THAI aims to increase revenue by 5% next year, thanks to its new fleet of 14 aircraft and an energy cost reduction plan.
Jan 8, 2014, 3:43 am
#11
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http://www.thaivisa.com/forum/topic/...ruptcy-rumors/
Feb 24, 2014, 7:53 am
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articel in "The Nation", February 22, 2014:
After holding Thai Airways International's chairmanship since May 2009, Ampon Kittiampon has tendered his resignation, effective on March 10.
Succeeding him will be Air Chief Marshal Prajin Juntong, currently first vice chairman of the THAI board. Prajin was just appointed a director on January 24, to replace Chulasingh Vasantasingh.
The changes were announced after the board of directors' meeting yesterday.
In a filing to the Stock Exchange of Thailand, the airline announced that Ampon would remain a member of the board despite his resignation as chairman.
During his nearly five-year tenure, he worked with two presidents - Piyasvasti Amranand, whose term was ended prematurely, and Sorajak Kasemsuvan, who resigned after a year in the position citing health problems.
Before becoming chairman of the board at the national carrier, Ampon had served as deputy permanent secretary of the Ministry of Agriculture and Cooperatives since 2002. He was also the secretary-general of the Office of the National Economic and Social Development Board. He is now the Cabinet secretary-general.
Ampon was initially appointed to a three-year term, which was extended. According to the THAI statement, he reasoned that it did not seem appropriate to stay too long in the top post.
He pointed out that unlike other private companies and state agencies, THAI does not specifically limit its chairman's term. For example, a government permanent secretary takes on a four-year term, and the chairman of the board of the Bank of Thailand is limited to two terms, each of three years. THAI should have something similar in place for its board chairman, he said.
At yesterday's meeting, the board also agreed to reshuffle two top executives. Teerapol Chotichanapibal was promoted as executive vice president (commercial) from his current post as VP for strategy and business development. Chokchai Panyayong was moved to senior executive president for strategy and business development, from senior executive vice president (commercial).
The two appointments will take effect on Monday. However, Chokchai will retain the role of the company's acting president.
The board went ahead with a plan to reorganise the airline's operational structure as proposed by a consultant and the company's management team. The revamp is aimed at increasing working efficiency and controlling operating costs. The board hopes to increase THAI's competitiveness in the changing aviation business.
Last month, THAI's cabin factor was 71.5 per cent, against 78.8 per cent in January 2012. It attributed the drop to China's legislation curbing single-dollar outbound tours and the prolonged political tensions in Thailand, which resulted in travel warnings issued by several countries. The number of foreign passengers on THAI flights dropped to 1.71 million from 1.89 million a year earlier.
After holding Thai Airways International's chairmanship since May 2009, Ampon Kittiampon has tendered his resignation, effective on March 10.
Succeeding him will be Air Chief Marshal Prajin Juntong, currently first vice chairman of the THAI board. Prajin was just appointed a director on January 24, to replace Chulasingh Vasantasingh.
The changes were announced after the board of directors' meeting yesterday.
In a filing to the Stock Exchange of Thailand, the airline announced that Ampon would remain a member of the board despite his resignation as chairman.
During his nearly five-year tenure, he worked with two presidents - Piyasvasti Amranand, whose term was ended prematurely, and Sorajak Kasemsuvan, who resigned after a year in the position citing health problems.
Before becoming chairman of the board at the national carrier, Ampon had served as deputy permanent secretary of the Ministry of Agriculture and Cooperatives since 2002. He was also the secretary-general of the Office of the National Economic and Social Development Board. He is now the Cabinet secretary-general.
Ampon was initially appointed to a three-year term, which was extended. According to the THAI statement, he reasoned that it did not seem appropriate to stay too long in the top post.
He pointed out that unlike other private companies and state agencies, THAI does not specifically limit its chairman's term. For example, a government permanent secretary takes on a four-year term, and the chairman of the board of the Bank of Thailand is limited to two terms, each of three years. THAI should have something similar in place for its board chairman, he said.
At yesterday's meeting, the board also agreed to reshuffle two top executives. Teerapol Chotichanapibal was promoted as executive vice president (commercial) from his current post as VP for strategy and business development. Chokchai Panyayong was moved to senior executive president for strategy and business development, from senior executive vice president (commercial).
The two appointments will take effect on Monday. However, Chokchai will retain the role of the company's acting president.
The board went ahead with a plan to reorganise the airline's operational structure as proposed by a consultant and the company's management team. The revamp is aimed at increasing working efficiency and controlling operating costs. The board hopes to increase THAI's competitiveness in the changing aviation business.
Last month, THAI's cabin factor was 71.5 per cent, against 78.8 per cent in January 2012. It attributed the drop to China's legislation curbing single-dollar outbound tours and the prolonged political tensions in Thailand, which resulted in travel warnings issued by several countries. The number of foreign passengers on THAI flights dropped to 1.71 million from 1.89 million a year earlier.
Feb 24, 2014, 3:21 pm
#13
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The best thing Thai Air could do (and this also comes from many Thai staff) is reemploy Amranand and clear out completely all those who sort and helped in his removal including Ampon. This won't be done of course as it involves too much "loss of face".
Thai is haemorrhaging money: tomorrow nights LHR-BKK is only one third occupied in economy, now is not by any means low season, it is still high season. This is an A340, they used to near fill a 747 at this time of year. All LHR-BKK TG917 are cancelled on Tuesdays and Thursdays in May and June with maybe more cancellations to come. Staff morale is low and sadly it is beginning to show, moving a few people around is not going to fix this, radical action is required and this necessitates a clear out at the top but with the government in turmoil this is also unlikely.
The best we can hope for is that Thai quickly find a new high calibre president but they will have to pay very well indeed for someone of this nature to take on this challenge.
The problems in Bangkok have not helped and you can't blame Thai Air for this but my business experience is that bad luck always hits you when you are least able to whether it.
Thai is haemorrhaging money: tomorrow nights LHR-BKK is only one third occupied in economy, now is not by any means low season, it is still high season. This is an A340, they used to near fill a 747 at this time of year. All LHR-BKK TG917 are cancelled on Tuesdays and Thursdays in May and June with maybe more cancellations to come. Staff morale is low and sadly it is beginning to show, moving a few people around is not going to fix this, radical action is required and this necessitates a clear out at the top but with the government in turmoil this is also unlikely.
The best we can hope for is that Thai quickly find a new high calibre president but they will have to pay very well indeed for someone of this nature to take on this challenge.
The problems in Bangkok have not helped and you can't blame Thai Air for this but my business experience is that bad luck always hits you when you are least able to whether it.
Feb 24, 2014, 5:22 pm
#14
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Ha! That will be the day. The insular thinking of the culture will be simply to hire from within and continue to switch titles in order to 'stimulate' the company. It will be a snowy day in Bangkok before THAI hires a foreigner with experience and equally unlikely someone with a vision and ability such as Amranand Piyasawat takes the helm again.
Feb 24, 2014, 10:02 pm
#15
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Ha! That will be the day. The insular thinking of the culture will be simply to hire from within and continue to switch titles in order to 'stimulate' the company. It will be a snowy day in Bangkok before THAI hires a foreigner with experience and equally unlikely someone with a vision and ability such as Amranand Piyasawat takes the helm again.
Couldn't agree with you more. ^